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

About Kavod

www.kavodseniorlife.org

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

Thank you!Kavod Senior Life Ph: 303.399.1146

Em ail: Info@KavodSeniorLife.org

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