A 176-unit senior housing community has been renovated and preserved as affordable housing in Austin, Texas.
Sunday Village, formerly known as Arbors at Creekside, features one- and two-bedroom units for residents 55 and older. At least half of the apartments are reserved for households at or below 50% area median income (AMI), and the remaining units are for households at or below 60% AMI.
The Austin Housing Finance Corp. (AHFC) and nonprofit National Church Residences collaborated on the project, with the cost of acquisition and renovation totaling just under $50 million.
“The renovations at Sunday Village ensure this community can meet the needs of its residents, now and in the years ahead,” says Deletta Dean, director of Austin Housing, the city’s housing organization that creates and preserves housing opportunities. “By investing in updates to existing affordable housing, the city is reaffirming its commitment to providing safe, comfortable, and accessible housing that supports the well-being of active adults.”
Tracey Fine, senior director of housing development for National Church Residences, emphasizes the urgency of preserving affordable housing for older and/or active adults at a time when demand is growing nationwide.
“Preserving communities like Sunday Village is critical as the country faces a ‘silver tsunami’ of aging baby boomers,” says Fine. “This renovation ensures residents can truly be ‘home for life,’ with accessible design features such as elevators, handrails, and visibility standards built into every unit.”
The property was originally built in 2004 and managed by a different entity under a 40-year lease from AHFC. However, years of neglect and storm damage caused by winter storm Uri in 2021 left the property in a state of disrepair, according to officials.
To address these issues, AHFC acquired special partner interests from the previous investors to take back control and properly maintain the apartments and brought developer National Church Residences on board to oversee renovations in 2022.
The renovation included repairing all exterior building and envelope issues; replacing windows and roofs; and full renovations of unit kitchens and bathrooms, including new cabinetry, countertops, flooring, light, and water fixtures. Elevators in the residential buildings were modernized, hallways were brightened, and entry security was enhanced. The community room received an overhaul to allow residents to host residential and community events, and a new fitness room and business center were added for resident use. The aging and unmaintained pool was replaced with a landscaped and covered seating area.
To fund the renovations, a new capital stack was created utilizing various funding sources, namely new equity 4% low-income housing tax credits administered by the Texas Department of Housing and Community Affairs (TDHCA), with Boston Financial as the investor and debt, a reservation of tax-exempt multifamily housing revenue bonds from the Texas Bond Review Board. Sources of permanent financing include loans from AHFC seller note, Fannie Mae multifamily tax-exempt bond collateral, TDHCA Housing Trust Fund, and a deferred developer fee.