This spring, a fresh batch of affordable housing stock will be served up for the growing Henderson senior population. With two low-income senior living facilities—College Villas and Pacific Pines IV—coming online by April, nearly 300 units will be put on the market, adding about 20 percent to the current 1,400 senior affordable housing units in Henderson.
Up first is Pacific Pines IV at 134 E. Pacific Ave., near downtown Henderson. The project is the fourth phase of a buildout that actually began in 2003. Its first three phases, which originally opened in 2005, include 186 units; the fourth phase will have 62 more, 54 of which will be one-bedrooms.
The high number of one-bedroom offerings is the result of the recession tightening seniors' budgets, said Mike Mullin, president of Nevada H.A.N.D. Inc., the nonprofit developer of Pacific Pines.
With the first phase constructed during real state boom years, that section of the project was dominated by two-bedroom units, he explained. The balance shifted through the years.
"Our research shows two bedrooms are more desirable, but financially, one bedrooms carry the day," the executive said.
Mullin expects to have his certificate of occupancy for the site by February and also foresees all of the units filling up within only one month.
Currently he has 80 interested parties vying for the 62 units. One-bedroom units will start at about $495 a month and will be available for those making less than about $20,000 a year, he explained.
For low-income projects like Pacific Pines, rental rates are tied to income that is a percentage of an area's median income, usually about 60 percent. Two-bedroom rent only should be about $100 more per month than the one bedrooms.
Pacific Pines also will house a fully improved 6,000-square-foot senior center, replacing the old downtown center at 27 E. Texas Ave., which was demolished to make way for this project. Mullin said the city of Henderson approached his team about rebuilding the decaying site a couple years ago.
"That center is a real focus for seniors in the area, and they really like access to the downtown area," Mullin noted.
Also on deck is College Villas, located at 511 College Drive near the intersection of Boulder Highway. The 5-acre site will have 226 units, 214 of which will be one-bedroom units. Prices at the four-story complex will range from the mid-500s for one bedrooms to mid- to higher-600s for two bedrooms.
For Joe DeSimone, broker of First Federal Realty and developer of the project, Heritage Park's nearby 30,000-square-foot senior center and shuttle service to the site, as well as nearby shopping conveniences, will be the primary marketing attractions for College Villas.
DeSimone is eyeing an April opening. With 100 people already on an interest list, he hopes to fill the units by the fall, if not sooner.
The architecture and layout of the site borrow from Soho and Tribeca in Manhattan, DeSimone explained, and offers its share of earth-friendly design elements. Some of those features include drought-tolerant landscaping, large windows that allow for sunlight to penetrate deep into the building, and rooftop solar panels that will generate a portion of the building's needed electricity.
After doing his own due diligence on the Valley's growing senior population, DeSimone estimates Southern Nevada will need to build or convert 3,000 to 4,000 units annually to accommodate seniors moving to the Valley in the coming years.
"What we're seeing is just an organic growth of seniors who qualify for this type of product," he added.
It took DeSimone two years to get the financing for the $25 million project and, like Pacific Pines, the bulk of it was helped by investors purchasing tax credits, as well as Housing and Urban Development-backed state and federal bonds, in addition to other smaller funding sources.
The city of Henderson kicked in $300,000 toward College Villas and $1.1 million for Pacific Pines, according to city officials, all of it money tied to federal stimulus or other federal funds geared toward affordable housing projects.
But both Mullin and DeSimone agree that getting investors to buy the state-allowed tax credits was a huge step toward the projects getting financing.
"That's been the problem is that for the past few years, no one's really been investing in them, because nobody really needed tax credits," said Doug Kuntz, affordable housing coordinator for the city of Henderson. "We're hearing that market is getting a little better, though."
