New affordable housing project to welcome seniors in Palmer: innovative financing from KeyBank moves Chugach Colony Estates project forward.

• Author: Pittis, Kathleen
• Position: BUILDING ALASKA

Affordable housing for the elderly is in short supply in many communities, a shortage that will only increase as baby boomers age into the need for downsized homes tailored to their changing needs. To meet that need, nonprofits, developers and lenders are combining their strengths. Kathleen Pittis of KeyBank explains how a new project in Palmer exemplifies this cooperation.

The nonprofit Palmer Senior Citizens Center and KeyBank are cooperating to meet the challenge of providing affordable housing for seniors in Palmer. This collaborative model takes on new importance as retirees stream into Alaska.

Alaska's age-65-and-older population grew by 60 percent from 1990 to 2000, reports the Institute of Social and Economic Research at the University of Alaska Anchorage. This group now comprises 14 percent of the state's population, second only to Nevada, and it is projected to grow by 61 percent from 2000 to 2010, versus 15 percent nationally.

In Palmer, 45 miles north of Anchorage and 10 miles northeast of Wasilla, services and facilities for seniors are clustered conveniently together. The Palmer Senior Services Center (PSCC) and its separate Adult Day Services Facility, the Palmer Pioneer and Veterans' Home and several other senior-housing facilities are all adjacent to shopping, entertainment and community activities. This nexus of services and conveniences seemed natural as the site for Chugach Colony Estates, a cooperative project in which PSCC was the borrower, as Chugach Colony Estate LP, as well as the general partner; with KeyBank and the Alaska Housing Finance Corp. providing the financing.

[ILLUSTRATION OMITTED]

Founded in 1980, PSCC is a 501 (c) 3 nonprofit providing meals, transportation and many other services and supports to seniors. KeyBank is one of America's largest bank-based financial services companies with assets of approximately $94 billion and a commitment to projects that benefit communities. The Alaska Housing Finance Corp. supports affordable housing initiatives through loans and grants.

As a nonprofit organization, PSCC qualified for Low Income Housing Tax Credits, a federal incentive program to encourage the development of affordable housing. KeyBank is purchasing the use of those credits for $3.9 million, providing these...