By 2015, the 50+ population in Montgomery County is projected to grow to almost 300,000 (according to the BoomerANG Project, 2006). Every one of them will need a place to live.
By 2015, Advanced Living Communities anticipates building another 240 apartments as part of their newest residential retirement community. Every one of them will be home to a senior in need.
“We simply cannot secure funding to build fast enough,” said Bill Brown, President & CEO of Advanced Living Communities, based in Lansdale. “Not only is the aging population growing dramatically. But a large number of seniors are considered low- to moderate-income and are in desperate need of an affordable retirement option. That’s what we do best.”
Advanced Living Communities currently operates two affordable, residential retirement communities in the North Penn area. Schwenckfeld Manor and Schwenckfeld Terrace are home to more than 300 low-income seniors. On Wednesday, Advanced Living will break ground on their third community – Derstine Run.
Derstine Run will be located on the property of the former Der Stone Bed & Breakfast on Derstine Road in Hatfield. The community will include four low-rise buildings of 60 one-bedroom apartments each.
“The community will look and feel a lot like our current campus on Allentown Road,” said Kim Krauter, Vice President of Operations for Advanced Living Communities. “The apartments will include a full-sized kitchen, individually-controlled heating and cooling, a state-of-the-art fire alarm and security system as well as ample storage space. Many of our resident amenities, such as activity space and laundry facilities, will be duplicated at the new site; while some services, such as transportation and entertainment, will be combined with our current operation.”
Construction of Derstine Run is expected to begin by June 2010 with the first of four buildings. Complete development could take 2-10 years.
“The pace of the project depends on how quickly we get the money to build each building,” said Brown. “We really have only two options when it comes to acquiring funds. We can apply for Section 202 funding from HUD or we can seek equity from a private investor through the tax credit program. We’ll take whatever funding we can get first.”
Funding for the first building of Derstine Run has been secured through the Pennsylvania Housing Finance Agency (PHFA) tax credit program, with $6.2 million of investment equity from PNC Real Estate. An additional $2.2 million was provided by Montgomery County and the Federal Home Loan Banks of Pittsburgh and New York. PHFA provided $3.5 million through federal stimulus funds. Additionally, Community Lenders Community Development Corporation, a consortium of local banks, will provide $825,000 in debt financing for the project.
In addition to its financial partners, Advanced Living Communities has hired Casaccio Architects as architects, Harkins Builders as the general contractor, Czop/Specter as site engineers and McHugh Engineering Associates as MEP engineers. Other partners include: Fairmount Ventures (financial advisor); Remington Group (project manager); and Dischell, Bartle, Yanoff & Dooley and High Schwartz (legal counsel).
The groundbreaking ceremony for Derstine Run will be held on Wednesday, April 28 at 2pm at 82 Derstine Road in Hatfield. The ceremony will include remarks from Advanced Living’s board of directors as well as Holly Glauser, Director of Development for the PHFA. Media personnel are welcome to attend. Call Karen Barbrow at (215) 362-0227 ext. 114 for details.