# Presentation: 673182

## PREISS-STEELE PLACE

**PREISS-STEELE PLACE**

**Preiss-Steele Place**
**500 Pickwick Trail**
**Durham, NC  27704**

_**Partners**_**:**
** ****Durham Housing Authority (DHA)**
** ****Development Ventures, Inc. (DVI)**
** ****City of Durham**
** ****HUD & FNMA**
** ****Enterprise Social Investment Corp. (ESIC)**
** ****Community Investment Corp. of NC (CICNC)**
** ****NC Housing Finance Agency (NCHFA)**

**- 102 Units -**

## BACKGROUND

**BACKGROUND**

**PREISS-STEELE PLACE**

**DURHAM, NC**

** ****Jack Preiss and DVI want to develop assisted independent living for low-income residents**
** ****City of Durham provides development infrastructure: capacity bldg grant, taxable bond funds, land purchase, 2****nd**** mortgage, & 50% of const loan**
** ****NCHFA: tax credit allocation & catalyst for dev loan**
** ****CICNC: 1****st**** mortgage & bridge loan**
** ****ESIC: tax credit syndication, TA, special limited partner**

## DURHAM LEADERS AT WORK

**PROCESS**

** ****Powerful people, organizations, and institutions - under creative leadership - can make something positive happen for poor people**
** ****Muddling through partnership process can effectuate a very complex development strategy if all the players are familiar with one another**
** ****Jack Preiss, Duke Professor, Chairman of Durham HA, and key player in DVI, was the creative leadership**

***DURHAM LEADERS AT WORK***

**PREISS-STEELE PLACE**

**DURHAM, NC**

## PROCESS (Continued)

**PROCESS ****(Continued)**

| FUNDING SOURCES |  |  |  |
| --- | --- | --- | --- |
| 1st Mtg. (30 yr. @ 9.25) | $1,066,000 | 15% | CICNC |
| Bridge Loan (6 yr. @ 9.25) | $1,479,500 | 19% | CICNC |
| 2nd Mtg. (20 yr. @ 0.5) | $2,000,000 | 26% | City of Durham Taxable bonds |
| 3rd Mtg. (30 yr. @ 0.3) | $200,000 | 2% | NCHFA Conservation loan |
| Grant | $100,000 | 1% | NCHFA Conservation Grant |
| Developer Equity
(repaid in 5 yrs.) | $105,000  | 1% | DVI Deferred Development Fee |
| Limited Equity
(10 yr. Commitment) | $2,750,600 | 36% | FNMA/ ESIC |
| Total: | $7,701,100 |  |  |

**PREISS-STEELE PLACE**

**DURHAM, NC**

**$76,000 per unit**

## PROCESS (Continued)

**PROCESS ****(Continued)**

| FUNDING USES |  |  |
| --- | --- | --- |
| Site Work and Construction | $4,142,174  | 53% |
| Design, Financing, Construction, Legal Fees | $2,723,444  | 35% |
| Land | $295,635  | 4% |
| Contingency | $280,910  | 4% |
| Syndication Fees | $220,000  | 3% |
| Lease up Reserve | $38,937  | 1% |
| Total: | $7,701,100 |  |

**PREISS-STEELE PLACE**

**DURHAM, NC**

## DESIGN / STAFFING

**DESIGN / STAFFING**

| 102 Units |  |
| --- | --- |
| 1  BR | 102 |

_**Design**_**:**
** ****New three story apartment building**
** ****Units and hallway wheelchair accessible**
** ****Lounges**
** ****Color-coded floors**
_**Staffing**_**:**
** ****Manager**
** ****Assistant Manager**
** ****Volunteer Receptionist**
** ****Custodian**

**PREISS-STEELE PLACE**

**DURHAM, NC**

## MANAGEMENT / MARKETING

**MANAGEMENT / MARKETING**

_**Management**_**:**
** ****Supervised by Durham HA Deputy Director of Operations**
** ****Audited annually by North Carolina Housing Finance Agency, ESIC, CICNC, and City of Durham**
_**Marketing**_**:**
** ****Initially there was no marketing, now there is some outreach in elderly publications**

**PREISS-STEELE PLACE**

**DURHAM, NC**

## CHALLENGES/FAILURES/LESSONS LEARNED

**CHALLENGES/FAILURES/LESSONS LEARNED**

**PREISS-STEELE PLACE**

**DURHAM, NC**

** ****Challenge - Create a fluid and transparent development process**
** ****Challenge addressed by section 8 and project development fund set aside**
** ****Key Failure - Capital attraction to provide residents:**
** ****Additional staff**
** ****Storage space**
** ****Accessible transportation**
** ****More security**
** ****Key Lesson Learned – Need powerful and committed staff under driven leadership, to do anything decent for the poor**

## ACCOMPLISHMENTS/SUCCESSES/HIGHLIGHTS

**ACCOMPLISHMENTS/SUCCESSES/HIGHLIGHTS**

** ****Friends of Jack Preiss was created by Jack Preiss to address vital resident needs not met by local government**
** ****There is a waiting list notwithstanding that a soft rental market enables landlords to offer luxury apartments to section 8 holders**
** ****DVI and the Durham community have organized local skills to address the issue of Assisted Living for low-income elderly**

**PREISS-STEELE PLACE**

**DURHAM, NC**