expanding life-enrichment programming to the greater …• congregation rodef shalom • denver...
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Expanding Life-Enr ichm ent Program m ing
t o t he Great er Com m unit yPresented by:
Michael Klein, President and CEOKavod Senior Life
Denver, CO
Why ext end services beyond t he walls of a
senior l iving com m unit y?
Kavod’s Approach:Kavod on t he Road
Three Main Com ponent s12
Senior Program sCom m unit y “Calendar ”Senior Conference3
Senior Program s• Collaborat ive w it h com m unit y
par t ners• 8 – 10 program s / m ont h• St af fed by 1 ½ FTEs• Cross-m arket ed• 975 receive program f l ier• 700 par t icipant s annually
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Program Par t ners:1• B’nai Havurah• BMH – BJ Congregat ion• BMH – BJ Wom en’s League• Chabad – Lone Tree• B’nai Chaim of SW Denver• Congregat ion Rodef Shalom• Denver Garden Apar t m ent s• Denver Hadassah• Denver Public Library• Feldm an Mor t uary• Hebrew Educat ional
All iance
• JEWISHcolorado• Jew ish Fam ily Service /
JFS @ JCC• Judaism Your Way• L.E.A. Hadassah• Mizel Museum• Shalom Park• The Denver JCC• Tem ple Em anuel• Tem ple Micah• Tem ple Sinai• The Jew ish Exper ience
Senior Program s1
GreaterDenver
Area
= 1 Mile
Program Exam ples1• Nat ure walks• Tours: cr im e lab,
bot anic gardens• Once-a-m ont h lunch
club (for singles!)• Movies + discussion
• Lect ures: f inancial wellness, safe dr iving
• Polit ics t alks• Ar t present at ions • Museum visit s• Volunt eer out ings
Sam ple
Com m unit y Calendar• “ f rom Oy t o Joy”• Clear inghouse for
com m unit y act ivit ies• Event s not age-based• Sent t o 2,000+ boom ers &
seniors
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Sam ple-inside
Sam ple-out side
L’Chaim ! Conference• Annual one-day event• Keynot e speaker • Three breakout sessions• 21 workshop choices• Resource fair• Par t ners help plan & st af f• Around 300 at t end
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L’Chaim ! Conference3Workshop Exam ples (Morning Session)• Wise Aging: Living w it h Joy, Resil ience and Spir it• Addressing Denial, Superst it ion and St igm a t o
Avoid Fam ily Dram a• Know t he Ten Warning Signs of Alzheim er ’s:
Ear ly Det ect ion Mat t ers• Maint ain ing Healt h and Prevent ing Il lness as You Age• Beyond Tzedakah: Shar ing Your Values, An Int eract ive
Discussion• Pract ical Mindfulness: Discover ing Refram es Every Day
L’Chaim ! Phot os3
Expenses and FundingExpenses:
• St af f , act ivit y fees, t ranspor t at ion, pr int ing
• Tot al budget = $97,000 (incl. salar ies)Funding:
• 50% - grant s & par t ner revenue• 50% - Kavod covers
Benef it s and Result sResult s:
• At t endance• Survey responses
Benef it s:• Branding and m arket ing• Servant leadership• Par t icipant benef it s
JCHE ApproachTo help senior adult s t o lead l ives of
purpose and engagem ent
Com m unit y CalendarWednesday Program for Senior Learners
Two Main Com ponent s12
Com m unit y Calendar• “From Strength to Strength”• Modeled after Kavod (with
permission!)• Why it is important
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Com m unit y Calendar• St akeholders
• Seniors• Adult children• Organizat ions w it h sim ilar
m issions
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From St rengt h t o St rengt h - f ront and back
From St rengt h t o St rengt h- inside pages
Com m unit y Calendar• Funding
• Grant s• JCHE
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Com m unit y Calendar• Dissem inat ion
• Tem ples• St ores• Rest aurant s- cof fee shops• Online at JCHE & CJP• Direct m ail ing
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Wednesday Program• Mission alignm ent
• Vil lage cent ers• Lifet im e learning
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Program St ruct ure:• Three sem est ers per year
• Fall• Spr ing• Sum m er
• Ten week sem est ers for Fall and Spr ing and four weeks for sum m er
• Each day consist s of f ive blocks and a t ot al of six of fer ings
Wednesday Program22
Wednesday Program
10:30am Choice of writing class or exercise
11:30am Lecture
12:30pm Lunch, kosher – bagged or brought from home
1:15pm Entertainment
2:15pm Current events or Yiddish
3:15pm Specialized exercise
2Exam ple:
• Hist or ians• Professors• Newspaper Colum nist s• Medical Professionals• Local Clergy• Phot o Journalist s• Local Polit icians
• Aut hors• Musicians• Ar t Lect ures• Com edians• Theat re Per form ances• Choral Groups• Magicians
Wednesday Program2Types of Program s:
Wednesday Schedule - Fall 2017 2
Wednesday Program• Resident buy-in• Com m unit y buy-in• Teacher /per form er resources• Measures of success
• Anecdot al• Grow ing num bers
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Wednesday Program• Obst acles • Successes
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Aging in community with dignity through opportunities that foster connection, purpose, and growth
Jewish Community Housing for the Elderly (JCHE)
Our Communities
Kurlat House Brighton, MA
Leventhal House Brighton, MA
Ulin House Brighton, MA
Shillman House Framingham, MA
Coleman House Newton, MA
Golda Meir House Newton, MA
Founded in 1965
1,200 apartments, 1,500 residents
Award-winning property manager
90% of our apartments are deeply subsidized
Diverse resident community
Aging in Community with supports and services
JCHE Agenda
• Stabilize and leverage existing portfolio • Doubling our portfolio within 10 years• Every project will have unique aging in community
component and be affordable to low and/or moderate income seniors
• Maintaining, adjusting and growing resident services to maximize length and quality of tenancies
• Using quality housing programs to advance agenda for aging in community in opposition to trends toward aging in isolation
Meeting the NeedStabilize, Leverage and Grow
Refinance HUD and FHA portfolio
Use Proceeds to Support Our Goals: – modernize existing housing– invest in organizational growth and stability– seed thought leadership and advocacy – fund predevelopment for expansion projects– make mission investments (e.g. moderate income housing) and take
extraordinary risk
Refinancing Plan
Option A: Refinance only using HUD or other financing program
Option B: Refinance and raise additional equity through the sale of tax credits
1. Submit application to HUD to mark rents up to market (“Mark-to-market”)
2. Refinance project to recapitalize
Mark up to Market (MUTM) Rents
Before
After MUTM withoutrehab % increase
After MUTM
withrehab % increase
Property 1
Studios $ 1,120 $ 1,925 72%1 BR $ 1,335 $ 2,650 98%
Property 2
1BR $ 1,562 $ 2,394 53% $ 2,437 56%2BR $ 1,721 $ 2,825 64% $ 2,876 67%
Refinancing OnlyPros:
Less complex, less expensive
Fewer parties involved → typically refinance through mortgage company specializing in HUD projects
Cash flows after paying debt go 100% to non-profit
No tax credit compliance
Cons:
Doesn’t maximize value of property
Refinance with tax credit equityPros:
Can add significant proceeds
Use additional funds to refurbish property
Cons:
Tax credit compliance different than HUD rules
Cash flow is shared with tax credit investor
Complicated! Lots of lawyers, advisors, staffing, etc.
Golda Meir House - BackgroundPHASE I: Golda I• 124 units built in 1978 • Financing: HUD 202 loan• Rent subsidy: Project-based
Section 8 contract for 100 of 124 units
PHASE I: Golda II • 75 units built in 1995 • Financing: HUD 202 Capital Advance• Rent subsidy: “PRAC” contract for 74 units
Aging in Community TransformationRefinance and Renovate Golda Meir House
Goals• Preserve and modernize all 199 affordable apartments as
one project, even though 2 phases funded separately• Transform community space to “Village Center” • Upgrade apartments/systems• Reach for 100% universal design • Transform 1970’s masonry into 21st Century green
building• Preserve low and moderate mixed income community
Ownership Structure
Jewish Community
Housing for the Elderly IV, Inc.
JCHE Golda Limited Partnership
Owner
Wells Fargo Investor Limited
Partner(99.99%)
JCHE Golda GP LLC
General Partner(0.01%)
Jewish Community Housing for the Elderly VI, Inc.Managing Member
(55%)
LRCC Holdings LLCMinority Member
(45%)
Golda Seller – Previous Owner Golda Buyer – New Owner
Proposed Re-Financing Structure
• Sell Golda I & II to a for-profit owner (controlled by JCHE)– $20MM price leverages tax credit equity to fund rehab and equity for JCHE
• Golda I– Prepay 202 loan – Mark up to Market 100 Section 8 apartments– Preserve 23 moderate income units – Finance with bond financed debt and 4% tax credit equity– Keep 27 Section 8 units out of credit basis
• Golda II– Subordinate 202 capital advance (not pre-payable)– Preserve 74 PRAC vouchers (lower rent)– Finance with 4% tax credit equity and JCHE Seller Note
Project Sources & UsesSources of Funds:
MassHousing Perm Loan $37.8MLIHTC Equity $20.2MJCHE-held notes $13.9MEnergy Rebates $ 0.4M
Total Sources $72.3M
Uses of Funds:Acquisition $19.8MDirect Construction & Contingency $34.8MSoft Costs & Financing Fees $10.2MReserves $ 3.6MDeveloper Fee $ 3.9M
Total Uses $72.3M
How to Calculate Value of Tax Credits
Construction BudgetTotal
BudgetIncluded in Tax
Credit Basis
Excluded from Tax Credit
Basis
Land Value 1,500,000 1,500,000
Construction Contract 15,000,000 15,000,000
Contingencies 750,000 750,000
Architecture, Engineering, etc 1,100,000 1,100,000
Legal 150,000 100,000 50,000
Interest 800,000 600,000 200,000
Utilities, Insurance & Taxes 400,000 100,000 300,000
Tax Credit Transaction Fees 300,000 300,000
TOTAL 20,000,000 17,600,000 2,450,000
Tax Credit Equity CalculationTax Exempt Bond Financing using “4%” Tax Credits
Total construction costs $20.0MCosts eligible for tax credits $17.6M
X % affordable (<60% AMI) x 100%
X 4% Bonds published “Applicable Rate” 3.25%
= Annual tax credits $572,000X 10 years $5,720,000X Price paid for Tax Credits $0.90
TAX CREDIT EQUITY $5,148,000
Project Summary• Long term preservation of
affordable units
• “Mark up to Market” rents on 100 Section 8 units – Rents on renovated units increased
106% for 1-BR units and 143% for 2-BR units
– Residents will continue to pay no more than 30% of income
• Approximately $6 million in acquisition proceeds
<30% AMI37%
<50% AMI29%
<60% AMI11%
<80% AMI10%
Unrestricted
13%
Income restrictions*
* As % of Area Median Income (AMI)
Project Highlights• All units adaptable for handicap accessibility
• Materials and systems to last 30 years
• “Village Center” reconfigured first floor
• Extensive resident involvement
Financing Transaction History2 year refinancing processDec 2014: Submitted Mark-up-to-Market
(“MUTM”) application to HUDDec 2015: HUD Preliminary MUTM approval June 2016: Approval for tax-exempt bonds from
MassHousing; solicited bids from tax credit investors
August 2016: Selected tax credit investorSept 2016: Received HUD Risk Share approval Dec 2016: Loan closing Jan 2017–Dec 2018: Construction
HUD and Lender Requirements• Mark-up-to-Market application, including market study
• Prepayment of Section 202 Loan
• Transfer of ownership to “for-profit entity”
• Transfer of existing replacement reserve to new entity
• Adjusted management fee limiting fee increase to 20%
• Full construction drawings
• Phase I environmental review
• Comprehensive relocation plan & marketing plans
Mission Impact
2/20/2018
Reserve Fund Long Term
Rainy Day Fund $20M
Services Fund $3M
Professional Development Fund $1M
Tenant Assistance Fund $1M
New Initiatives (Technology) $1M
Real Estate “Credit Line”RE Development Equity
$5M $10M
Total $41M
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Discretionary Cash Balance: 2010: $1 million
2018: $41 million