Adaptive Reuse

Adaptive reuse projects create new housing in existing buildings once used for commercial, public or industrial purposes. Housing created through adaptive reuse projects can be made more affordable than new market-rate developments since infrastructure is generally already present at the site. 

In Practice

Bloomington, Indiana. The Bloomington Department of Housing and Neighborhood Development (H.A.N.D.) partnered with the owners of a motel to rehabilitate the rooms into 40 efficiency apartments and four one-bedroom units. The renovations included adding kitchen facilities and cabinets, as well as new wiring and plumbing. The city invested $156,000 from federal HOME funds that the owner must pay back if, after five years, the rents are increased to market-rate.

Richmond, Virginia. Independence House in the City of Richmond is the first group home for survivors of traumatic brain and spinal cord injury in the city of Richmond. The project involved the adaptive reuse of the existing building at 1725 National Street in Richmond’s Fulton Hill Neighborhood. It provides independent living training and affordable, wheelchair-accessible housing for the survivors. Funding throughout the State of Virginia was given to involve the adaptive reuse of the already existing building. The Department of Housing and Urban Development awarded Virginia Supportive Housing a capital grant in the amount of $306,600 to renovate and construct an addition and has committed an additional $88,000 in rental subsidies to the project.

Seattle, Washington. In Seattle, a Brownfield site in a historically disadvantaged neighborhood is being converted to affordable housing for the elderly. To succeed, the project required multiple layers of financing, public sector incentives and the involvement of non-governmental not-for-profit agencies; all requiring complex valuation and real estate analysis expertise. Public-private partnerships were the key to this project’s success. The public sector brings certification expertise, zoning and density variances or other concessions, and is often able to waive certain regulatory/compliance costs. Also, because the public sector has a mandate to facilitate affordable housing in urban areas, states and municipalities can often bring tax-free financing, tax credits, credit guarantees or other incentives to bear. Successful development of a Brownfield sometimes requires the use of a municipality’s eminent domain powers to clean up title problems or provide unity for dismembered tracts. These not-for-profit agencies, with their special expertise in dealing with target populations for affordable housing, bring invaluable resources to the process.

Providence, Rhode Island. In Providence, the Melrose Neighborhood Revitalization Project represented the vision and hard work of residents and community organizations in the historic Elmwood neighborhood. The project provides affordable housing for 45 families, including many first-time homebuyers. The project used both federal and state historic preservation tax credits in addition to various housing funds. The Greater Elmwood Neighborhood Services partnered with neighborhood residents and the Elmwood Foundation and the PPS Revolving Fund to bring the project to its successful completion.