Historic Buildings Restored for Seniors Housing

BY ANDRE SHASHATY

ALLENTOWN, PA. - . Pennrose Properties specializes in restoring landmark buildings, and its expertise was just what this city needed to transform two early 20th Century downtown buildings into 63 one-bedroom apartment units for independent seniors aged 62 and older.

Allentown Center Square Senior Housing was created by restoring the former Allentown National Bank and the former Trojan Powder Building, which stand side by side on the same block.

Built in 1905 and 1912, respectively, the buildings "were in a state of terrible disrepair," according to Pennrose. The restoration included removal of a drop ceiling that had been inserted into the bank lobby, revealing a dome that was restored and is now part of the common area.

Turning commercial buildings into apartments was challenging and costly, the firm said. The floors of the two buildings did not align, so dual-stop elevators were installed. Remediating lead paint and asbestos and restoring the historic dome also added significant expenses. The total development cost was $12.2 million, or $193,000 per unit. Construction costs were $8.5 million, per the original contract, plus $841,000 in change orders.

The firm says it raised $9.3 million in equity from low-income and historic tax credits for the project. The city helped with an $800,000 loan from HOME funds for a term of 30 years with interest accruing at the applicable federal rate.

Other financing included a $1.2 million loan from the Pennsylvania Housing Finance Agency's PennHOMES program. It has a 30-year term at zero percent interest, with deferred principal payments for the full term.

The project had a $1 million tax credit allocation, or about $16,000 per unit.

For the environmental remediation, the sponsors obtained a loan for $428,000 from the Department of Community and Economic Development's Industrial Sites Reuse Program. It has a 30-year term, with no interest and deferred principal payments.

The 62 one-bedroom units are sized at 548 square feet and rent for up to $469. There is one efficiency unit, which is 395 square feet and rents for $375. About half the units are targeted to people earning up to 60 percent of the median income. The balance is targeted to people with incomes maxing out at 40 percent and 50 percent of AMI.

A part-time on-site service coordinator will link residents to aging, health, transportation, and other community services. Low-cost on-site meals are among the services offered to residents.

The development also has a gym, a computer lab, a community room, and an examining room for visiting doctors and nurses. Lease-up began April 2006, just a month before completion. Full occupancy was achieved in eight months.