A four-decade-old senior housing community in Glendale, Ariz., is undergoing a comprehensive renovation while operating near full occupancy. The overhaul at Tanner Terrace, a 156-unit affordable housing community in suburban Phoenix, spans both infrastructure and resident experience—replacing core building systems, upgrading unit finishes, improving accessibility, and adding new wellness and social amenities similar to those seen in modern senior independent living communities.
Undertaking such a complex project amid high construction costs requires creativity and mission alignment. To see the work through stabilization while keeping rents affordable, new owner WNC & Associates is leveraging multiple funding sources through its rehabilitation arm, Community Preservation Partners.
In this interview, John Fraser, vice president of development at CPP, discusses the decisions guiding the redesign of the age-restricted property, and how mission-driven developers are navigating today’s complex financing and construction environment in the senior housing sector.
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Why was such a comprehensive renovation at Tanner Terrace necessary, and how did you structure the financing to make it feasible?
Fraser: The primary motivation behind the renovation was to address the significant capital needs of a 40-year-old property while ensuring seniors could continue to live affordably in Glendale. We became aware that the nonprofit previous owner of Tanner Terrace was looking for a developer to step in and put together a plan to address deferred maintenance, extend affordability and ensure that the property remained financially and physically sustainable for the current and future generation of seniors.
To make the renovation feasible, we structured a financing plan that combined four percent LIHTCs with tax-exempt bonds issued by the Arizona Industrial Development Authority. We also partnered with U.S. Bank as the equity partner and construction lender, with Citibank providing permanent financing. This approach allowed us to cover the full scope of rehabilitation while preserving long-term affordability for residents.
With occupancy around 98 percent, how are you minimizing disruption for residents while addressing Tanner Terrace’s capital needs?
Fraser: With Tanner Terrace being an existing, occupied community, we knew that renovating the property while maintaining occupancy of existing residents would be a challenge. While it’s impossible to avoid some disruption, CPP, along with our project partners, has put together a rehab scope of work and relocation plan that prioritizes resident communication and minimizes disruption as much as possible while ensuring we renovate the property in such a way that ensures long-term success and stability.
Through market research and historic operations at Tanner Terrace, it was clear there is a strong and unmet demand for affordable housing in Glendale and Greater Phoenix area. The renovation is centered on tangible improvements that directly affect residents’ daily lives—from new HVAC and plumbing systems to upgraded appliances, LED lighting and accessibility enhancements. We’re also adding community amenities such as a bocce ball court, putting green, bike storage and an exercise room to encourage wellness and social connection.
How did you decide on these specific amenities? Were residents involved in shaping the design?
Fraser: We have learned from experience that these recreational amenities are popular, well used and lead to enhanced health and a sense of community. The security system will be upgraded based on not only property management feedback but also best practices industry wide. While we prefer to hear directly from residents, it’s sometimes challenging to solicit direct resident feedback as much of the rehab scope, including amenities, are designed and programmed prior to closing when we’re not always able to meet with residents prior to CPP acquiring the property.
In what ways will the redesigned Tanner Terrace support aging in place?
Fraser: Once renovated, the new amenities will support aging in place to further enhance the residents’ experience. For example, we plan to construct a fitness center to improve independent mobility and physical/mental wellness of the residents. We will also provide upgrades to the community’s wheelchair and overall ADA accessibility features to ensure accessible pathways are up to code and encourage mobility.
What makes developing, preserving and upgrading affordable senior housing particularly challenging?
Fraser: Developing and preserving affordable housing is challenging whether it’s geared toward seniors or families. The unique challenge in preserving senior housing is working around tenant needs and reasonable accommodations while completing expansive and complicated renovations. Seniors have unique health and mobility needs that must be considered when planning the sequencing of renovations and the location of amenities.
As the U.S. population continues to age, how are you adapting your development approach to meet growing senior housing demand?
Fraser: While we have been developing and preserving senior housing for years, one of the biggest lessons we’ve applied at Tanner Terrace is the importance of designing for accessibility and connection. In addition to individual unit upgrades, we are improving ADA pathways, widening doorways and adding features like non-slip flooring and grab bars.
At the same time, we’re enhancing shared spaces such as the community kitchen and outdoor areas, since residents consistently tell us that social gathering spaces are just as important to their quality of life as the apartments themselves.
With inflation and construction costs still high, how difficult is it to execute high-quality renovations while keeping rents affordable?
Fraser: It’s certainly not getting easier to develop and preserve affordable housing. We continue to execute high-quality renovations with affordable rents by finding efficiencies, partnering with like-minded development team members and staying abreast of and implementing the latest and most efficient financing structures.
For Tanner Terrace, we brought together federal and state funding sources with local financing partners to make the project work. Coordinating multiple programs and lenders requires careful scheduling and compliance oversight, but by setting benchmarks early with our partners, we’ve been able to keep the project on track while delivering the level of quality seniors deserve.
Looking ahead, what role do you see mission-driven developers playing in the future of affordable senior housing?
Fraser: To remain relevant and successful in affordable housing, developers must remain nimble enough to navigate evolving political and financial landscapes. As affordable housing faces new market challenges, it’s the mission-driven developers that will remain when purely profit-motivated developers chase easier projects with guaranteed returns.
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