Crest Manor

Addressing Affordable Housing

By Erica Rascón on Apr 22, 2016 in News

Redevelopment and new construction at Crest Manor apartments in Willow Grove, Pa., began on April 13, 2016. The new construction will provide subsidized housing to the state with one of the most significant shortages.

Montgomery County Housing Authority (MCHA) constructed the 54-year-old property. The need for updates and repairs for the two-story buildings became critical: one residential building and a maintenance building will be demolished; 15 residential buildings will undergo substantial rehabilitation; three new residential buildings and a new community center will be constructed at the 4.48-acre site.

The reimagined community will feature 46-units of affordable housing apartments and duplexes. The homes range from one- to five-bedroom floorplans.

MCHA partnered with Yardi client Pennrose Properties, LLC and Pennrose Management Company for the nearly 50,000 square-foot revitalization project.

“This redevelopment was a true community partnership,” said Kyle Speece, senior developer, Pennrose Properties, LLC. “MCHA was truly vested in understanding the needs and wants of current Crest Manor residents, as well as other stakeholders in the community.”

The new construction will provide much needed housing for the state. A study from the National Low Income Housing Coalition reveals that the average workers in Pennsylvania cannot pay rent based on their current salaries.

Rising wages have not kept up with skyrocketing rents. A Pew Research Center report estimates that 21 million Americans are struggling to pay for housing with near minimum wage salaries. The wage-to-rent gap is markedly large in Pennsylvania. The Atlantic’s City Lab observes that Pennsylvania residents are among the most likely in the country to get priced out of rental housing. The new additions at Crest Manor are a small step in the right direction.

The Crest Manor community revitalization required $17.7 million in funding. Alden Torch Financial/JPMorgan Chase contributed $12.4 million in equity by syndicating low-income housing tax credits from the Pennsylvania Housing Finance Agency (PHFA). Funding also includes a loan of $2.72 million from MCHA, $1 million in MCHA trust funds, $750,000 from PHFA PennHOMES, $648,000 in the form of a private loan from Fulton Bank, and $200,000 in grant funds from the Community Development Block Grant from the Abington Township.