Building Support He was dealing with not in my back yard attitudes long before the industry even recognized it as a problem, says Schrand, of Wells Fargo.
“In locations where there is a community group – and they’re in almost all the places we work – we try to meet with the community groups before the project is proposed and solidified,” says Evans. And, when the company takes over a problemed property, it works with recognized neighborhood groups, social service agencies, the police department and the local government to formulate a plan of turning around the troubled project.
For instance, when the company ac-quired Lake Washington Apartments, a tax credit project in Seattle, the neighborhood sentiment was that the community would be better off getting rid of the project completely. Instead, A.F. Evans, together with a local nonprofit, demonstrated to the neighborhood that once the revitalization of the community was completed, the property would serve working people supporting the community and not be another public housing project that attracted undesirable residents.
The community requested that social programs be added to the project. So, A.F. Evans included an on-site child care facility at the property and an on-site social services director, who tapped into other available programs like Meals on Wheels and senior programs to serve the residents and community at large.
The overall project was successful because it was a joint venture deal with Southeast Effective Development, a non-profit developer, which had access to those programs, says Evans.
It’s common for A.F. Evans to put these types of programs into its projects. In the Tenderloin district in San Francisco, where Evans has several projects, the community wanted a child care facility, explains Schrand. Although the facility threatened the feasibility of the project, it was still constructed. Evans was able to obtain a grant from tax credit investors, which was used to set up a scholarship fund for resident children to attend the day care.
Community residents also wanted a retail store for the area. A. F. Evans ended up financing a small sandwich shop, which gave people a place to go for coffee, ice cream and a bite to eat, says Schrand.
It’s not just the low-income properties that are contributing to the community. In Fremont, Calif., where Mission Wells, a high-end property, is located, the company participated in a welfare-to-work program. The company rented a few units to program recipients at a price break.
“Not only do you build good will in the community, but you build some morale in the company when you do things like that,” says Evans. “As a business, the more you’re involved in the neighborhood and build your reputation, the more projects and more opportunities that occur. So, it’s satisfying and it’s also good business sense.”And, since a majority of the A.F. Evans’ senior staff comes from the public sector or the nonprofit world, having a social conscience is very important to them.
“I think that’s what’s unique about us,” says Jack Robertson, vice president of A.F. Evans Development Inc. “We have a social purpose in mind, rather than just straight business. … We do a lot of joint venture projects to accomplish these goals.”
Monterey Pines, an affordable housing complex in Richmond, Calif., is a prime example. The company secured a combination of government-insured loans and tax credit equity investments to extensively rehabilitate the project, which previously was known as JFK Manor.
When the affordable housing project was completed, 12 units were rented at half-price to teachers in the community. In exchange for the cheaper rent, the teachers provided tutoring service two hours per week for residents. “The teacher housing program was very successful,” says Robertson, “not only for the teachers, but also for the kids, by having role models live at the property.”