The Presbyterian Homes, Inc. (PHI), based in High Point, an accredited continuing care retirement community leader, and DHIC, Inc., a non-profit affordable housing developer based in Raleigh, have announced a planned $33 million purchase and rehabilitation of Capital Towers, Raleigh’s largest affordable apartment community for seniors located at 4808-4812 Six Forks Road in North Hills.
Initially built in 1973 with the backing of Triangle area Presbyterian churches, Capital Towers offers 298 studio, and one bedroom apartments across two buildings, all restricted to low-income seniors. The average age of Capital Towers residents is 77 years old and roughly 25% of residents receive rental assistance from Housing Choice Vouchers issued by the Raleigh Housing Authority or Wake County Housing Authority.
“We are thrilled to work with DHIC and the Capital Towers Board to ensure the quality and affordability of this important resource for seniors,” says Tim Webster, President of PHI. “Capital Towers will be a tremendous complement to our mission, and allows us to carry on the strong tradition of Presbyterian care and service to senior adults in the Triangle area.”
“DHIC and PHI are two seasoned non-profits and are the right partners for the job,” says Sam Stone, Chairman of the Board at Capital Towers. “Their deep experience in financing, development and operations of senior housing, as well as their collective footprint in the Triangle, were keys to making this joint effort to preserve Capital Towers a reality.”
Of the $33 million total project cost, $17 million will be committed to rehabilitation needs that will address aging mechanical systems, update common spaces, maximize health and safety features throughout the complex, and promote energy efficiency, which helps reduce operating costs.
Major financing for the deal is expected to come from a tax-exempt bond volume cap allocation plus 4% low-income housing tax credits from the NC Housing Finance Agency. A $2.8 million request for subordinate financing has been approved by the Raleigh City Council.
“DHIC is pleased to play a role in preserving this resource for the next thirty years, ensuring these apartments do not convert to suit the high-end market,” says Gregg Warren, President of DHIC. “There is nothing like Capital Towers anywhere else in Raleigh, but public sector support will be critical for this deal to move forward.” The partners point out that the City of Raleigh’s 2016 Affordable Housing Plan specifically calls for income diversity in desirable neighborhoods like North Hills.
As the project moves forward, PHI will provide an on-site social worker to help residents address the personal, social, and environmental challenges associated with aging in place. Services will include medical and mental health support, service coordination, crisis intervention, and assistance with entitlement program enrollment, among others. An activities coordinator will also be on-site to plan, implement, and monitor recreation programs for the residents.
Established in 1974 and based in downtown Raleigh, DHIC has built or rehabilitated nearly 2,200 affordable rental apartments and 400 homes for sale in the greater Research Triangle area. In addition, DHIC’s Homeownership Center provides homebuyer education and advisory services to close to 400+ first-time homebuyers annually. For more information, go to www.dhic.org.
The Presbyterian Homes, Inc. has more than 60 years’ experience as a leader in the senior living field. Its mission is to provide senior adults with caring and high quality services in support of their physical, intellectual, social, and spiritual well-being. The Presbyterian Homes, Inc. is a non-profit corporation serving approximately 1,700 seniors across three owned and two managed continuing care retirement communities located in North Carolina. It is affiliated with the Presbyterian Church (USA) through a covenant agreement.