Community Towers is a seven-story, 61-unit high rise for elderly residents in Louisville, Kentucky, built in 1982 by a non-profit organization. Managed by the non-profit group, the property did very well until in the early 2000’s. Vacancies, rising utility costs, and other operating expenses led to some unfortunate financial decisions that landed Community Towers on HUD’s troubled list. HUD worked with the owner and a new management company to help the property address its physical and financial challenges and to re-position the property for the long term.
Community Towers refinanced using an FHA-insured 223(f)/202 loan in 2007 which provided $600,000 that enabled the owner to complete a number of large and small repairs. The owner was able to address some of the key concerns at the property, including rising utility costs, through a repair program that included energy efficiency improvements. The owner replaced the roof, upgraded to energy efficient lighting and HVAC systems, enhanced elevators, put in new paint and carpet throughout entire building, installed new plumbing, appliances, and energy efficient windows in every unit, and renovated the entire community room to add a fitness room, Network Neighborhood center, and recreational area. In addition to the refinance, the owner brought a professional management company on board to effectively train staff in project management. The management change and refinance turned around this property. Occupancy has remained steady at 100 percent for the first time in ten years, and these senior homes remain protected as affordable housing.
Today, Community Towers is on solid financial footing, has enhanced community space, and has preserved the long-term affordability of the project.