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| Success Stories: Old Factory Converted to Senior Housing |
Outline of Need:
How Rural Development Helped: The renovation project began in 2003 and cost $1.5 million to complete. USDA Rural Development provided a loan in the amount of $600,000 at 5-3/4% interest (click here to learn more about this and other programs). The loan is amortized over a 50 year period to make payments affordable. The remaining funds for the project were provided by the Delaware State Housing Authority and local banks.
The Results: The property is 100% occupied and rents for these apartments run from $345 to $580 serving seniors from 50% to 80% of MHI. There are three one-bedroom and eight two-bedroom apartments plus an office and a community room in the building. The residents have an internal hallway allowing them to visit one another without leaving the building. Hubert H. Humphrey, US politician (1911-1978) -- “It was once said that the moral test of Government is how the Government treats those who are in the dawn of life, the children; those who are in the twilight of life, the elderly; and those who are in the shadows of life, the sick, the needy and the handicapped.” The work that is carried out by the Better Homes of Seaford organization is a great example of living up to this standard. Charleston Place serves as a role model for the community and a role model for the Government.….
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(March 2006) |
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The key word in Sussex County Delaware is “Affordable Housing” and that is exactly what Better Homes of Seaford, Inc. had in mind when they bought an abandoned sewing factory, that was last operated by Kim Manufacturing from 1993 to 1996, and turned it into 11 comfortable apartments for the elderly. The renovated building is called “Charleston Place” and is located on Phillips Street in Seaford, DE . Better Homes of Seaford is a non-profit housing organization that develops rental housing for low and moderate income persons in western Sussex County. 
Per the 2000 Census, the Median Household Income (MHI) for Seaford, Delaware is $28,402. The latest fair market rents as reported by the Department of Housing and Urban Development (HUD), and used in various Section 8 programs for Sussex County Delaware are listed at $555 for a 1 bedroom unit and $627 for a 2 bedroom unit which includes the cost of utilities. 
Approximately 5 years ago when Better Homes of Seaford acquired the old sewing factory the building was in a shambles. The non-profit estimated it was constructed in the 1920's and that's how it was named “Charleston Place,” from the dance that was popular at the time. It wasn't until they began restoration efforts that they found old newspaper stuffed in the wall that was dated September 8, 1940. The non-profit estimated that for 56 years 150 sewing machines hummed along in the building providing jobs for nearly 200 workers in the rural area. 
For USDA Rural Development, this rental housing project is unique: 1) there is no rental assistance in this property; Better Homes of Seaford opted not to have rental assistance so that rents would be kept closer to market rate to reach a segment of the population that normally doesn't qualify to be occupants of our subsidized properties. 2) Unlike most of our financed properties, all units have a washer and dryer in them, in lieu of a laundry area that serves all the tenants. And, 3) it is the first time in over a decade, through Rural Development's Multi-Family Housing program in Delaware, that an old building has been restored into apartments.
On January 9, 2006, a ribbon cutting ceremony was held bringing together the community and local, state and federal officials, including Congressman Michael Castle. At the podium in front of the large crowd it was mentioned more than once the caliber of the non-profit organization called Better Homes of Seaford, Inc. Comments such as, 9 out of 10 developers probably wouldn't take on a project of this nature, and not only is the renovation and reuse innovative, but the approach to providing affordable housing should serve as a model throughout Sussex County . Mayor Daniel Short said, “To buy land and build something new is easy, but to take a building and find a new use for it is more difficult.” 
