Reinvestment Fund financing is helping build affordable housing for seniors in Valdosta, Georgia.
In a community with a large need for affordable places to live, Reinvestment Fund is partnering with IDP Properties to develop seventy-six affordable housing units for seniors. This Low-Income Housing Tax Credit project will create housing units affordable to residents making as little as 50% of the area median income.
As the U.S. adult population is increasingly aging, there is a large gap in affordable housing readily available for current and upcoming senior citizens. According to the United States Census Bureau, one in five adults will be of retirement age by year 2020; almost 50% of them would have faced challenges in their adult life that required them to dip into their saving earlier or were not able to save enough. Most seniors allocate more than half of their monthly income towards their housing expenses; as housing and cost of living cost expenses are rapidly increasing, subsidized or rent controlled housing options are a solution to addressing the issue.
A portion of Reinvestment Fund’s capital for this project comes from the Capital Magnet Fund program. The Capital Magnet Fund, administered by the U.S. Department of the Treasury CDFI Fund, is designed to address affordable housing initiatives and relieve housing cost burdens for families with low income. The project is also receiving financing through the CDFI Coalition Revolving Fund (CCRF), which is supported by the Georgia Department of Community Affairs (DCA)’s Tax Credit Assistance Payment (TCAP) fund. CCRF supports acquisition, construction and/or rehabilitation of multi-family affordable housing across the state of Georgia. CCRF’s partner CDFIs include the ANDP Loan Fund, Enterprise Community Loan Fund, NeighborWorks Columbus, Reinvestment Fund and Southwest Georgia United.
It has been almost three years since a project like Ashbury Apartments has been built in Valdosta, Georgia. As the state is actively pursuing methods to combat the underlying causes of the housing issues, Reinvestment Fund, IDP and Valdosta, LP aim to solve the problem by providing more units to seniors who need them. With this funding—Reinvestment Fund’s third project with IDP—the partners will provide a feasible living option for seniors in the area.