POAH - Preservation of Affordable Housing

The Preservation Challenge
The sheer size of Hawthorne Place made it a daunting property to own or manage. Located on the outskirts of Independence, Hawthorne Place is remote from city services, shopping and work. Its 745 families, including more than 1,000 children, depend on the rent subsidy available at Hawthorne Place; all of the residents earn less than half the area's median income.

The previous owner of Hawthorne Place had refinanced the property through HUD's LIHPRA (Low Income Housing Preservation Act) program, which was intended to provide financial incentives to private owners of affordable housing reaching mortgage maturity who might otherwise consider selling the properties on the open market. The funds, however, were only minimally used for rehab, and the property was in a state of significant deterioration.

POAH’s Role
POAH's purchase of Hawthorne Place broke new ground in preservation policy. While Hawthorne Place fit solidly into the rules for HUD "mark-to-market" incentives which would have increased rent subsidies to meet actual operating costs, Congress had outlawed the participation of any LIHPRA-refinanced deals from receiving mark-to-market assistance. With assistance from Missouri Senator Christopher Bond, POAH was able to obtain an exception for Hawthorne Place (an exception which has since been expanded to all preservation purchases by nonprofit owners.)

Senator Bond's influence was also key in convincing HUD to allow 'additional (non-HUD) funds' in Hawthorne Place's financing package. The large Hawthorne Place community--66 acres and 101 buildings--had no public space available for resident services programming: training, meetings, recreation, etc. With additional funds allowed, POAH leveraged sufficient state and other dollars to build a 22,000 s.f. community center on site. Now home to a satellite of the Kansas City Boys and Girls Club, a food pantry, a computer lab and numerous other activities, the building was renamed the David Stanley Community Center in 2007, to recognize the service and commitment of POAH's founding Board Chairman.

16995 E. Dover Lane Independence, MO 64056 Hawthorne Place is home to 745 families, including more than 1,000 children. The property includes 102 buildings on 66 acres, the size of a small midwestern town. Its value as affordable housing cannot be overstated: Hawthorne Place is the single largest provider of Section 8 rental subsidies in the state of Missouri.	Project Partners • Missouri Housing Development Corporation • Fannie Mae • U.S. Department of Housing and Urban Development (HUD) • City of Independence The Preservation Challenge The sheer size of Hawthorne Place made it a daunting property to own or manage. Located on the outskirts of Independence, Hawthorne Place is remote from city services, shopping and work. Its 745 families, including more than 1,000 children, depend on the rent subsidy available at Hawthorne Place; all of the residents earn less than half the area's median income. The previous owner of Hawthorne Place had refinanced the property through HUD's LIHPRA (Low Income Housing Preservation Act) program, which was intended to provide financial incentives to private owners of affordable housing reaching mortgage maturity who might otherwise consider selling the properties on the open market. The funds, however, were only minimally used for rehab, and the property was in a state of significant deterioration. POAH’s Role POAH's purchase of Hawthorne Place broke new ground in preservation policy. While Hawthorne Place fit solidly into the rules for HUD "mark-to-market" incentives which would have increased rent subsidies to meet actual operating costs, Congress had outlawed the participation of any LIHPRA-refinanced deals from receiving mark-to-market assistance. With assistance from Missouri Senator Christopher Bond, POAH was able to obtain an exception for Hawthorne Place (an exception which has since been expanded to all preservation purchases by nonprofit owners.) Senator Bond's influence was also key in convincing HUD to allow 'additional (non-HUD) funds' in Hawthorne Place's financing package. The large Hawthorne Place community--66 acres and 101 buildings--had no public space available for resident services programming: training, meetings, recreation, etc. With additional funds allowed, POAH leveraged sufficient state and other dollars to build a 22,000 s.f. community center on site. Now home to a satellite of the Kansas City Boys and Girls Club, a food pantry, a computer lab and numerous other activities, the building was renamed the David Stanley Community Center in 2007, to recognize the service and commitment of POAH's founding Board Chairman.
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