Thanks to a zero-interest loan from the Arizona Community Foundation’s (ACF) Affordable Housing Fund, Pineview Manor is one of 11 affordable housing projects under way across Arizona.
Work on the 49-unit rental development for low-income senior citizens is slated to begin in June 2011.
The project includes rehabilitation of an existing 29 units and construction of 20 new units for senior citizens with incomes below 60 percent of the area’s median income.
Located at 304 S. Clark Road in Payson, the development will include supportive services and reduced rents.
The nonprofit Foundation for Senior Living is developing Pineview Manor with a $75,000 recoverable grant from the ACF Affordable Housing Fund, which will help pay for predevelopment work, including archaeological studies required to secure building permits.
The loan is repaid when lender or government financing is obtained for the project, typically within 24 to 36 months, creating a “recycling” of available charitable dollars to continually assist nonprofit developers and projects.
Since 2007, more than $1 million has been raised for the fund, and more than $1 million has been loaned to support the development of affordable housing in Arizona. The fund has supported 15 affordable housing developments to date, 11 of which are active.
Banks, foundations, corporations, public utilities and private donors have contributed.
The leverage combined with the innovation inherent in recoverable grants make the fund highly efficient and effective for investors looking to make a difference in their communities, said Steven G. Seleznow, president and CEO of the ACF.
“The most important advantage for ACF and other funders is that our dollars are leveraged many times over to yield a far greater return than could be achieved as single gifts,” said Seleznow. “A $50,000 gift alone could not create multiple units of affordable housing, but coupled with other gifts to leverage significant financing in later stages, that gift is now helping to create entire developments.”
Grants are awarded year-round, and the application and eligibility requirements are available online at www. azfoundation.org/grants.