Rose Garden Senior Apartments, located in Southern Nevada, represents a significant new construction initiative aimed at providing high-quality housing for seniors. This project completed construction in 2018 and replaced the existing 120-unit Rose Gardens public housing building across the street, which was demolished upon completion. As a Rental Assistance Demonstration (RAD) project, it will operate under a 20-year Housing Assistance Payments (HAP) contract with units set at 60% Area Median Income (AMI). Although no special needs set-asides are included, Nevada HAND will offer voluntary services through a part-time social services coordinator, with funding allocated in the project budget.

The Southern Nevada Regional Housing Authority (SNRHA) initially prepared the tax credit application and selected HAND through an RFP process for development. Early involvement of key stakeholders in the tax credit application is essential for securing necessary funding and aligning project goals.

During the predevelopment phase, this project team needed to establish a clear ownership structure in order to prepare themselves to work with tax credits. HAND Enterprises Inc., as the managing member, sponsor, property manager, and guarantor, holds a 60% stake in the General Partner (GP), while Affordable Housing Program, Inc. (AHP) holds 40%. This clear delineation of responsibilities ensures effective leadership and accountability.

The operating agreement permits AHP to purchase HAND’s interest for $100 after specific conditions are met. HAND’s commitment was essential in the tax credit stage in working with Enterprise as the syndicator to mitigate risks and ensure stability for investors.

While the project does not seek specific green certifications, it incorporates energy-efficient features like Energy Star appliances, efficient HVAC systems, Low-e windows, and drought-resistant landscaping. This practical approach balances cost considerations with environmental benefits.

The following gives a sense of the capital stack in the project:

The Rose Garden Senior Apartments project sets a positive precedent for affordable housing development in Southern Nevada. By successfully navigating complex ownership structures, effectively utilizing tax credits, and fostering strong partnerships, this project allowed residents from the original public housing to improve their quality of life and preserved valuable subsidy. The commitment to high-quality, sustainable, and community-oriented housing highlights Nevada’s ongoing efforts to address senior housing needs and advance affordable housing solutions across the state.