The Situation
In 2018, CPP began working with Presbyterian Senior Care of Western Pennsylvania on the repositioning and capital improvement plan for a portfolio of five Section 8 senior housing properties surrounding Pittsburgh, Pennsylvania. Built decades prior, the 276-unit portfolio required major renovations to maintain safety and extend affordability. Presbyterian Senior Care, while desiring to retain ownership and control, needed outside expertise to manage the financial and construction complexities. CPP was tasked to deliver a comprehensive, cost-efficient rehabilitation, enabling Presbyterian Senior Care to meet its mission while securing necessary funding and expertise for modernization.
The Solution
CPP implemented a fee-based development structure, allowing Presbyterian Senior Care to maintain ownership while CPP managed all aspects of the financing and renovation. This model involved securing $15 million in Low income Housing Tax Credits (LIHTCs) and $21 million in tax exempt bonds from the Pennsylvania Housing Finance Agency (PHFA), with equity from PNC Bank and additional nonprofit-backed soft loans. Working closely with Presbyterian Senior Care, CPP designed a financial and construction plan to address deferred maintenance, major building system replacements, and key modernizations, including accessibility and energy efficiency improvements. By using a 4% LIHTC and other state resources, CPP maximized the renovation budget to make critical updates while retaining affordability.
The Results
CPP's involvement led to a single efficient partnership that enhanced each property’s sustainability, with an investment of about $45,000 per unit covering crucial upgrades and deferred maintenance. This approach enabled Presbyterian Senior Care to continue its mission of providing affordable senior housing with enhanced financial stability and property longevity. The 276 units, with affordability secured through regulatory agreements, now offer modern, comfortable homes that meet both the residents' needs and Presbyterian Senior Care’s mission.
