Affordable Sector Needs Specialized Housing

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TUSTIN, CA—Projects like Miracle Manor are sorely needed in the subsidized-housing realm, IREM president and Camden Property Trust divisional VP Michael Brown and Miracles for Kids CEO Autumn Strier tell GlobeSt.com. As we reported earlier this month, Miracles for Kids has begun the renovation of a multi-unit apartment building that will offer subsidized housing to families with children battling chronic or life-threatening illnesses. Miracle Manor is an extension of the organization's mission to providing financial aid and stability to Orange County's most at-risk families. We spoke exclusively with Brown and Strier about specialized multifamily development and the challenges to getting this project to its current stage.

GlobeSt.com: Is it becoming more common for multifamily development projects to become more specialized like Miracle Manor?

Brown: Unfortunately, and to my knowledge, I have not seen a trend toward greater specialization such as this project. However, the senior-housing segment is growing, as is student-oriented housing, to meet the needs of those growing populations.

Strier: I do not have any knowledge of national trends in the purchase of multifamily properties for a change of use; however, I am hopeful that other nonprofit organizations are considering the opportunities that exist in this area.

GlobeSt.com: What were the challenges to getting this project to this stage??

Brown: From our perspective, the challenges were related to the fact that the existing deferred-maintenance conditions of the property were significant. The bones of the site were relatively good from a floor-plan perspective; however, the goal is to gut them out and provide new flooring, cabinetry, paint and fixtures and to knock out a wall or two and make each unit more accessible and geared to the needs of the intended families. This requires a fair amount of assistance and coordination related to labor and materials from the community and our vendor partners. It is a true labor of love, however, and I am always amazed at how well the process comes together. Additionally, the exterior was in dire need of paint, and the landscaping, concrete and asphalt were in need of a complete overhaul.

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Strier: The greatest hurdle initially was the identification of the property itself, since very few properties remained on the market long enough in Orange County for us to identify, let alone review their viability for this project. The key was to locate a property prior to its entrance into the market, which we were able to accomplish, giving us a window of time to review it as a potential project site. Once we were successful in negotiating a price and entering escrow, financing is always challenging for nonprofit organizations. However, Miracles for Kids is fortunate to have strong relationships in the banking community, which we were able to leverage in order to complete the acquisition and secure the property for its use as Miracle Manor.

GlobeSt.com: What else should our readers know about this project or about specialized multifamily development?

Brown: Once this project is completed, the 12 units will be well received and fill a need that has an even greater depth than we can fulfill, but it will make a difference in many lives for years to come. The need for this type of housing is ever-present, as is the need for housing of the homeless. The hearts of this community including HomeAid, IREM and our Friends of IREM (whom are our vendor/contractor partners) combined with additional contractors are large, and each participant gives freely and often, and I am so proud of what we can and have accomplished. I can only hope that this serves as an example to inspire others since the needs are great in Orange County and California in general.

Strier: In addition to securing the Miracle Manor property at below-market rates, we are hoping to complete the renovations (currently valued at approximately $760,000) at little or no cost to Miracles for Kids. Our community renovation partners HomeAid and IREM will play an integral role in consultation with and facilitating the remodel, which includes fresh interior and exterior paint, structural improvements to the individual units, new furniture and a revamped family-friendly outdoor space.

Families facing life-threatening illnesses often experience income loss and even risk homelessness, and we can't wait to offer Miracle Manor as a convenient and cost-effective housing solution for families in Orange County.