The Preservation Challenge
Beachwood Apartments, built in 1979 as affordable housing for low-income elders, is located across from the vibrant town center in Narragansett, Rhode Island. In the three decades from 1970 to 2000, this seaside town bounded by Rhode Island Sound to the east and the Atlantic Ocean to the south experienced dramatic growth in its year-round population, from 7,000 residents to more than 16,000.

The concomitant pressure on the town's real estate market was intense. Beachwood, well-situated and on a sizable parcel of land, had reached mortgage maturity and expiration of its affordability restrictions. Local and state leaders were very concerned that the property was in danger of conversion to luxury housing. At the time of the Beachwood purchase, units in a nearby complex of similar size which were converted from rentals to condominiums were being sold at $350,000 and above.

POAH’s Role
POAH bought Beachwood Apartments in 2004, using a mortgage from Rhode Island Housing as well as proceeds from the sale of low income housing tax credits. Under HUD's non-profit transfer program, POAH obtained a 20-year Section 8 rental subsidy contract as well. As part of its purchase financing, POAH identified funds to update kitchens and baths, replace all windows and sliding doors with energy-efficient models, and paved and re-graded walkways and ramps to meet building codes for handicapped accessibility. Emergency and fire alarm systems were also modernized.

The property, which has been well-maintained throughout its lifetime, has always been fully rented with an extensive waiting list of seniors seeking to move in. Beachwood represents the principal challenge in preserving affordable housing; in the face of market dynamics stacked significantly in favor of those at the upper end of the income scale, POAH has ensured that Narragansett seniors will retain their secure and attractive homes and that a publicly-funded asset will remain available well into the future.