Virginia Housing-financed project to offer affordable senior housing in Augusta County
Gateway Senior Apartments is currently under construction in Fishersville. The four-story modular construction building, financed by Virginia Housing, offers a location within a mile of the Augusta Health Center and near a wide range of other medical, cultural, and community facilities.
“Gateway Senior Apartments is the first development that we’ve financed using modular construction,” Virginia Housing Director of Rental Housing Art Bowen said. “This process has a number of advantages, the biggest being time savings. In fact, if this development was built through conventional construction, it would have taken 24 months. By using modular construction, it will be built in 15-18 months – a time savings of approximately 30 percent.”
As a result, the units can be placed in service faster, benefiting those in need of housing.
These time savings are realized because construction of modular units occurs in an offsite factory, at the same time as foundation work is being done. The prefabricated units are then shipped to the building site 75 percent complete and are stacked on top of a stick-built first floor.
The developer then connects the electrical and plumbing systems and installs the roof and siding to complete the building.
In addition to time savings, benefits of modular construction include high-quality construction, cost savings, less waste, fewer weather-related delays and a reduced risk of accidents for workers.
“This development meets an existing need in the Fishersville area for affordable senior housing, and Virginia Housing looks forward to financing similar developments using modular and other innovative construction methods in communities across the state,” Bowen said.
In 2019, Virginia Housing created a new Innovation Pool in its tax credit program to promote the use of innovative construction techniques in affordable housing developments. This led Pinnacle Construction and Development Corp., the developer of Gateway Senior Apartments, to seek funding through the pool.
After Pinnacle’s proposal was reviewed and approved by Virginia Housing, it was awarded 9 percent federal housing credits, equal to $14 million, to offset the cost of construction.
As a result, Pinnacle became the first developer to use the Innovation Pool tax credits and will lease rent-restricted units at Gateway to residents earning 60 percent or less of the area median income.
Pinnacle also received $6.4 million in financing through Virginia Housing for the balance of the project.
Park Properties Management Company, a related entity and a Virginia Housing certified management agent, will manage the property.
“Gateway Senior Apartments presents a unique opportunity for Pinnacle Construction to partner with Virginia Housing to learn about and maximize the benefits of innovative construction methods for affordable housing,” said William Park, President of Pinnacle. “We look forward to sharing the positive impacts of this collaborative endeavor with the local community.”
Pinnacle is also associated with Regency Senior Living, an assisted living facility next to Gateway, which could provide an opportunity for many residents to age in place.