Technical Assistance - Success Stories

NHT Helps Orlando Neighborhood Preserve 142 Apartments

The future of Palm Grove Apartments' very-low income residents was uncertain at best. The 142-unit community, built in Orlando, Florida decades ago as federally assisted housing, was showing its age. Worse, the federal restrictions mandating that the property remain affordable long-term had expired.

In stepped Orlando Neighborhood Improvement Inc. (ONIC) with an offer to buy the property, make the needed repairs, and keep it affordable, both now and in the future. An experienced non-profit, ONIC was no stranger to complicated real estate deals. This one was different, though, involving two types of federal housing subsidies that had to be restructured and retained to keep the community affordable. ONIC hired the Trust to do just that: structure the financing and make it work.

The sale took place, the rehabilitation was completed, and Palm Grove's residents now enjoy both a better place to live and ONIC's rich network of community programs and services year-round. They have access to job training and placement, health screenings, clinics and exercise programs. GED, tutoring, literacy and other adult education classes are offered. Seasonal trips take residents to museums, cultural workshops and recreational activities. Quarterly workshops on financial literacy and savings strategies round out the package.

Dessie with granddaughter Julie

The Community Housing Management Corporation (CHMC) engaged the National Housing Trust to perform a preliminary evaluation of refinancing and rent increase alternatives that provide for the repairs and rehabilitation needed at its three Section 8 senior apartment properties: Covenant I, Covenant II and CHAI Apartments.

CHMC's goal was to generate funds for needed repairs and property improvements for the properties, either as a group or individually. Together with NHT, CHMC was able to:

• Identify potential refinancing approaches taking into account the financial position of each property, federal and state regulatory constraints and existing financing restrictions.
• Identify and evaluate the various rent increase options available for each property, the constraints involved with those options, and the feasibility of achieving their rehabilitation goals through a rent increase strategy.
• Provide guidance regarding the options most likely to allow CHMC to achieve its long-term objectives.
• Ultimately succeed in obtaining rent increases and grants to upgrade the properties.

Dessie celebrates her 91st birthday with great-grandkids

Since her move to Covenant House in March of 2004, Dessie, a frail 90-year-old woman, has flourished. She is able to walk a mile a day within the facility, which she could not do before; as she suffers from macular degeneration and is legally blind, Dessie could not walk outside without fear of falling. She is no longer forced to rely on others for transportation to the grocery store, beauty shop, podiatrist and meal program, as all of these services are located within the Covenant House/CHAI complex. She enjoys living near and visiting with her granddaughter and her husband on a frequent basis. This has increased her sense of independence and has increased her will to continue living.

Dessie is able to afford her medications, groceries and new clothing because she now enjoys the benefit of a Section 8 rent subsidy. Without Covenant House / CHAI Apartments and the assistance provided through HUD and the Federal Section 8 program, Dessie would have ended up in a nursing home, utilizing many more government dollars to cover her care. In addition, she would not have had the opportunity to feel a sense of independence and pride from living independently and the peace of knowing she can meet her financial needs.