Capital -Gazette

Capital-Gazette
September 4, 2007

Homes for America keeps living affordable for seniors

At the Bay Forest Senior Apartment Community in Annapolis, where he has lived for more than a decade, Skip McGee enjoys a home some seniors only dream of.

For a monthly rent of $775, the 78-year-old enjoys a spacious tidy apartment, has access to a wellness center and library and regularly takes part in social activities.

"It's my home, I hope for another 20 years," he said.

Bay Forest, where the waiting list for a two-bedroom apartment runs six months to a year, is just one example of the affordable homes created by the Annapolis-based Homes for America.

Since it was founded by two women in 1994, the nonprofit company has developed or preserved 55 rental communities with 4,447 units for seniors and families in Maryland, Virginia, Delaware and Pennsylvania. In Annapolis and Anne Arundel County, the organization has provided roughly 280 apartments and townhomes and sold 60 single-family homes in the city.

This spring, the company was named by Affordable Housing Finance as the nation's 24th largest affordable home owner.

Like many affordable-home developers, Homes for America relies on government tax credits and grant programs.

What's different is that Homes for America doesn't run day-to-day operations, but rather pays private contractors to renovate and manage its communities.

"What we're good at is putting them together and overseeing them," said Trudy McFall, the organization's co-founder who recently stepped down as chairman of the Annapolis Housing Authority board of commissioners. "Our business model has been really successful."

John Kortecamp, executive vice president of the Home Builders Association of Maryland, said Homes for America has a very "innovative and unique setup." Affordable home builders are often for-profit entities, and build, own and manage their properties, as opposed to contracting that work to other companies.

Nancy Rase, Homes for America president and a former deputy at the state Department of Housing and Community Development, said properties are funded with public resources and private loans.

The organization receives development fees from the government when financing a project and uses that money to pay for staff and pre-development costs, officials said.

When scouting properties in a certain area, Homes for America visits with state and local officials, she said.

"We let the state or local agency know what we're proposing to do, get their input, coordinate on funding," said Ms. Rase. "We don't like to surprise them."

She said 60 percent of the Homes for America properties are in Maryland. Renters must earn below 60 percent of an annual median income, while homeowners must earn below 80 percent, she said. Ms. McFall said Section 8 voucher assistance, which helps low income families subsidize rents, are welcomed at the rental communities.

At Bay Forest, monthly market rent for a one-bedroom apartment is $806 and $966 for a two-bedroom unit.

But a lack of available land - particularly parcels near shopping centers and amenities - has stifled the organization's efforts to build in Anne Arundel. Arundel Habitat for Humanity has run into the same problem and is now building the majority of its homes in the Brooklyn area of Baltimore. Dan Ellis, Habitat's executive director, said his organization will build its 100th house this fall on Clay Street and just finished a house in Glen Burnie thanks to a family that donated land.

"In order to build in the county it really requires the right partnerships," he said.

The story of Homes for America began with two women whose dream to provide attractive affordable housing for seniors and families meant the major life decision of quitting their jobs.

"We just wanted to do it ourselves, we both observed how people did it well and how people did it less well," said Ms. McFall. "We wanted to stay in Annapolis and we both loved working together ... We said 'let's give it a try.'"

Now working out of a spacious office overlooking postcard views of the Chesapeake Bay, the organization has grown to 14 full-time employees who emphasize quality of life for their residents.

"We wanted it to be a place where people felt really nurtured," said Ms. McFall.

For example, the Bay Forest community has an active residents council led by Ruby Hicks Banner, who prepares welcome baskets to make residents feel special, and coordinates meetings for input on social activities and trips. Ms. Hicks Banner said more residents are getting involved.

"The cookies and punch have made a big difference," she said. "They feel like they are going to a tea party."

Residents also decorate the entrances to their apartments, work on puzzles in a community room and enjoy walking paths and a gazebo. The Office on Aging also provides catered meals to residents every week.

Resident Alice Martin said she became a resident 10 years ago and regularly participates in watercolor classes and bingo.

"You're independent, everybody's friendly, there's lots to do," she said. "I love it."