Senior housing group shares plan for Groves

Published 5:21 pm Tuesday, November 28, 2017

GROVES — A company offering affordable senior living apartments is looking at Groves as a possible location for an 80-unit complex.

John Guttman, develop manager of JES holdings Inc., along with Ryan Stevens, director of operations for Fairway Management Inc., an affiliate of JES, presented information to Groves councilmembers on Monday. Their project is contingent on low-income housing tax credits and one of their steps in the highly competitive application process is to receive a resolution of support from the city as well as a small amount of financial support — $500 — which would go towards the application fees should the city give the green light.

No vote was taken during the meeting as it was for discussion only. The company reps plan to return at a later date with more information that was requested by council.

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Another developer previously sought the proposed location, behind Encounter Church on Twin City Highway, last year but that plan didn’t pan out.

“It’s a great location for seniors and is close to Walmart and retail,” Guttman said. “We also know that Groves can’t really expand out. Another reason we are here tonight is to discuss something that can be built here that we are proud of and the city of Groves can be proud of.”

The senior villas, as they are called, would be set up in six to eight complexes of units with a community center, community garden and outdoor gazebo with barbecue grills.

The complex will be limited to the elderly and the leaseholder must be at least 55.

Councilman Kyle Hollier quickly asked about this requirement.

“What if my grandson wanted to come stay with me for nine months,” Hollier said.

Guttman explained that the maximum number of days a visitor can stay is two weeks to which Stevens elaborated on.

“Two weeks in a 45 day period. Outside of that, federal guidelines say you have to income-qualify,” Stevens said. “Communication is the key. We also don’t allow babysitting because a lot of the time that includes undisclosed income.”

Dealing with a tenant who is in the scenario posed by Hollier is simple. Go to the person directly and speak with them.

“Maybe one in 15 years have we had to go down the legal road,” he said.

Income requirements include: seven units set aside for residents at $11,000 to $13,000; 14 units set aside for residents at $19,000 to $22,000, 49 units set aside for residents at $23,000 to 27,000 and 10 unrestricted units.

Screening requirements include rental history, credit history and a criminal background check.

Council has previously expressed concern about apartment complexes that come into the city and later change hands, often with a negative outcome — maintenance not done regularly and no onsite managers.

Stevens said there would be full-time, on-site management during working hours Monday through Friday and the manager as well as maintenance persons would be on call for emergencies. The manager would not live on site.

Hollier asked Guttman to provide a copy of the lengthy application that will be sent to the state as well as the names and contact information for the company’s other properties.

Groves Mayor Brad Bailey said he is eager to find out more on the proposed senior complex and find what’s best for the city.

The two businessmen assured council of their good track record and they still own properties developed decades ago and that those properties look as good as they did when constructed.

JES Holdings LLC has more than 20 years experience developing affordable multi-family housing and has developed 135 apartment communities with more than 4,300 residential units. They have three communities in Central Texas and a fourth under construction in North Texas.

Fairway Construction Co. Inc. has 30 years experience, more than 135 apartment communities with more than $375 million construction value, according to information from the company.

Fairway Management Inc. has more than 20 years experience, currently manages over 7,500 apartment units throughout the south and southwest, has 170 apartment communities under management and an overall portfolio occupancy of 97 percent.

Affordable Equity Partners Inc. provides a full range of services for developers and investors in the Section 42 LIHTC Program, has more than 400 tax credit developments and has never had a foreclosure or credit recapture, syndicated over $3 billion in federal and state tax credits.