Read the Seattle Pacific Hotel case with particular focus to the Project Financing/Sources of Funds box and the Tax Credit Analysis box. Assuming the following factors change:
- The current yield for the Rehabilitation Credit is 90 cents to the dollar.
- The equity yield for the Low Income Credit is 75 cents to the dollar.
Required:
- Using the Tax Credit Analysis provided in the case recalculate how much Combined Equity will be raised based on the change in yields. The result should be calculation of equity for the Rehabilitation Credit, the calculation of equity for the Low Income Credit and the Total Equity Raise amount. This must be a calculated dollar amount. No discussion or analysis is required only the dollar amounts.
gram, one of the key resources used in the Pacific Hotel project, was under fire on the national level. The previous week the House Ways and Means committee had voted to sunset" the tax credit by the end of 1997, an action that was later defeated. In the case of the Pacific Hotel, $3.7 million in corporate equity was generated through the com- bined usage of the historic rehabilitation tax credit and LIHTC programs. Without these programs, it is doubtful that the Pacific Hotel could have been rehabilitated, nor received a second chance at life. In 1996, the Pacific Ho- tel received the State Preservation Officer's Award for Outstanding Achievement in Historic Rehabilitation. Ownership structure: Pacific Hotel Limited Partnership General Partner(s): Plymouth Housing Properties Limited Partner(s): National Equity Fund 1993 Limited Partnership Developer: Cheryl DeBoise, Executive Director (1) Plymouth Housing Group 2209 19 Avenue Seattle, WA 98121 (1) Current executive director is Paul Lambros. Architect: Stickney Murphy Romine Architects, PLLC Ron Murphy, Principal-in-Charge and Mike Romine, Project Architect 911 Western Avenue, #200 Seattle, WA 98104 General Contractor: MARPAC Construction (formerly Pacific Components) 1227 S. Weller Street Seattle, WA 98144 Preservation Consultant: Shirley L. Courtois 235 13th Avenue E., Suite 203 Seattle, WA 98102 State Historic Preservation Office: State of Washington Department of Community Development Office of Archaeology and Historic Preservation 420 Golf Club Road, S.E., Suite 201 Lacey, WA 98504 State Housing Authority: Washington State Housing Finance Commission 1000 Second Avenue, Suite 2700 Seattle, WA 98104-1046 This CASE STUDY IN AFFORDABLE HOUSING was pre- pared by Aleca Sullivan, Technical Preservation Services Branch, Heritage Preservation Services, National Park Ser- vice, with the assistance of Ron Murphy of Stickney Murphy Romine Architects. Special thanks are extended to Kaaren Dodge, Charles Fisher and Deborah Maylie of the National Park Service. CASE STUDIES IN AFFORDABLE HOUSING are de- signed to provide practical information on innovative tech- niques for successfully preserving historic structures while creating affordable housing. This Case Study was prepared pursuant to the National Historic Preservation Act, as amended, which directs the Secretary of the Interior to develop and make available to government agencies and individuals information concerning professional methods and techniques for the preservation of historic properties. Comments on the usefulness of this information are wel- comed and should be addressed to Affordable Housing Case Studies, Heritage Preservation Services, National Park Service, 1849 C Street NW (NC 200), Washington, D.C. 20240. CSAF-1 August 1998 TAX CREDIT ANALYSIS: Historic Rehabilitation Tax Credit Total development costs Total qualifying expenditures Rehabilitation Tax credit % Total Rehabilitation Tax Credit Equity Yield for Rehabilitation Credit Equity raised from Rehabilitation Credit Project $8,534,694 $5,925,041 x20% $1,185,008 80 $948,006 Low-Income Housing Tax Credit Analysis Total developing costs (should be the same as above) Total Qualifying expenditures Less Rehabilitation Tax Credit Eligible Basis Low-Income Proportion Qualifying Basis Annual Credit % Annual Credit Amount Total Low-Income Housing Tax Credit Equity yield for Low-Income Credit Total Equity raised from Low-Income Credit $8,534,694 $6,234,742 [$1,185,008] $5,049,734 130% (1) $6,564,654 9% $590,819 $5,908,190 45.84e (2) $2,708,079 Total Combined Equity: $3,656,085 Notes: (1) Project consists of 100% low-income units and is located in "qualified census tract", therefore a 30% boost/increase in credit amount is allowed. (2) Yield low due to: a) At that time the LIHTC was not yet a permanent program, resulting in few investors/little competition; and b) 100% of HRTC and LIHTC equity was invested up front, at the start of construction. Equity for the project was raised through syndication of both the Historic Rehabilitation and Low-Income Housing Tax Credits. The project benefited from its location in a Qualified Census Tract. To encourage development in these areas the Low-Income Housing Tax Credit allows a 30 percent boost in the credit amount earned, increasing the qualifying basis for this credit alone from $5 million to over $6.5 million. Both credits were syndicated through the National Equity Fund, providing a total combined equity of over $3.6 million to the project. individuals in studios and one-bedroom apartments; and homeless individuals in the Single Room Occupancy units (SRO's). In addition to providing a safe place to live, resi- dents now get a chance to reverse their misfortunes with on-site access to services such as employment training, medical and mental health assistance, transportation, and nutrition, addiction and financial counseling. Upon comple- tion of the rehabilitation, a representative of the adjacent and prestigious Rainier Club commented: "Initially, we were saddened by the decline of the once-gracious Leamington Hotel and Apartments. Windows were boarded up; Fourth Avenue and Marion were in decline. Then, along came Ply- mouth Housing Group. There was a vast improvement that I attribute to a board and staff of good, caring people. For those of us watching the progress of the rehabilitation, it was a classic case of metamorphosis - from caterpillar to butterfly. The residents of the Pacific Hotel are welcome neighbors." Summary Project Benefits Once a vibrant part of downtown Seattle, by 1992 the Pacific Hotel building had lost its former glory and had become a vacant eyesore. Foresight and creative planning by the Plymouth Housing Group saved this building from ruin. Peculiarities in the original de- sign made it possible to serve two different popula- tions in the same building: independent, low-income Ironically, as the rehabilitated building was being dedicated in October 1995, the Low-Income Tax Credit (LIHTC) pro- PROJECT FINANCING: Total Cost of Project Acquisition $2,113,092 Rehabilitation $6,421,602 Total $8,534,694 Total Rehab. Cost per Unit $56,828 * Represents total costs - not just qualifying costs SOURCES OF FUNDS A rehabilitated stairway in the Pacific Hotel. only feasible option was to create a new, level entry at a point where the sidewalk most closely aligned with the floor. To accomplish this, a large window opening was carefully modified to become a doorway by cut- ting away the sill. Two apartments were then mini- mally re-configured and a ramp (leading to an eleva- tor) was inserted between them. As a result, eight units and all common areas were made fully accessible. An- other code issue was caused by the balconets (ie. pseudo-balconies) which blocked emergency egress from 36 bedroom windows. The balconets are inte- gral to the historic integrity of the building's facade. The solution in this case was to cut the guardrail from the frame and remount it as a hinged "gate with a latch reachable from inside the unit. Grants/Subsidies: Total amount: SO Sources: No capital funds; however, homeless units receive operating subsidy from HUD's McKinney SRO MOD REHAB program over a 10-year period. Debt Financing: Total amount: $4,878,609 Sources: 1) Washington Mutual Bank (including FHLB interest rate write-down) 2) Washington State Housing Trust Fund 3) City of Seattle Dept. of Housing and Human Services 4) Loan from General Partner Equity: Total amount: $3,656,085 Source: National Equity Fund Total: $8,534,694 Although constructed with a concrete frame, the building's geographic location in a earthquake zone also mandated significant seismic improvement. The in- side of all exterior walls received a grid work of two by four framing to which the existing clay tile infill was anchored using heavy gauge copper wire. Struc- tural shear walls were installed at selected interior lo- cations and roof parapets braced. All exterior walls were covered on the inside with 32" insulation added to the wall cavities created by the two by four framing, This approach allowed the original single glazed win- dows to be retained while improving overall energy performance. out of consideration for safety issues and the fact that a similarly detailed stair remained in the building and was representative. Project Financing The east apartment wing contained two ornate exit stairs, one of which was extremely steep and non-code complying. After considerable study it was determined that the ground floor portion of the stair met code and could be retained while the steep portion (2nd through 4th floor) required replacement with a modern, code complying, stair. Prior to any action being undertaken the architects consulted with the National Park Ser- vice for guidance. The action was approved by NPS, Project financing for the Pacific Hotel was aided by a se- ries of low-interest and no-interest loans. Over 30 per- cent of the total development costs were provided by two loans from the City of Seattle in which the interest was forgiven and principal deferred. The State of Washington provided a low-interest loan to aid in acquisition costs of the project through the Washington State Housing Trust Fund. Washington Mutual Bank offered the most tradi- tional source of funds, enhanced by a Federal Home Loan Bank interest rate write-down. apartment wing and a four-story L-shaped hotel wing. Despite the difference in the overall sto- ries of the two building wings, the wings share a uniform cor- nice height due to the sharp downward slope of the street on which they are sited. The L- shaped wings are joined to form a single U-shaped building en- closing a large, private court- yard that was virtually inacces- sible. During the rehabilitation process, an opening from the ad- jacent lobby was sensitively cre- ated to provide tenant access into the courtyard. An exterior concrete ramp was installed for Code issues were met accessibility and a patio, trellis, with creative solu- fountain, tables and extensive tions. Accessibility is lands ing were added. provided by modify- ing an original Several code issues with a po- window into a tential to impact the historic ap- doorway. The balconets were pearance of the structure also re- retained by adding a quired creative solutions. Pro- hidden hinge viding disabled accessibility to allowing egress. the building was a major chal- lenge. Due to the sloping streets, all of the existing en- tries were located several steps up from the sidewalk. The The rehabilitated courtyard, fully accessible from the lobby. Rehabilitation Work The Pacific Hotel has successfully retained much of the historic fabric of the Leamington. Features such as the original floor plan, decorative balconies, terra-cotta, brick, windows and primary stairways are all extant to tell the his- tory of the property. This was accomplished through ad- dressing modern-day challenges with innovative solutions. The Leamington complex was originally built as separate but conjoined properties, including a three-story L-shaped STUDIO STUDIO ALLEY MARION STREET BOOM STUDIO warna ) 4TH AVENUE KEY PLAN STUDIO STUDIO STUDIO STUDIO BORM EAST WING, BEFORE STUDIO BORM BORM The Pacific Hotel rehabilitation successfully utilized the historic floor plan with only minimal changes, as is shown in these before and after plans of the development's east wing STUDIO STUDO STUDIO STUDIO EAST WING, AFTER Rehabilitation work was undertaken by Pacific Hotel Limited Partnership, a limited partnership formed by Plymouth Hous- ing Group. As the building was not individually listed on the National Register when the project began, a preservation con- sultant, Shirley L. Courtois, was brought in immediately to re- search the history of the building in preparation of the National Register nomination. This information then was utilized by Stickney Murphey Romine Architects, the architectural firm hired for the project, in the preparation of the "Part 1-Evalua- tion of Significance of the Historic Preservation Certifica- tion Application to take advantage of the Historic Rehabilita- tion Tax Credit. The Part 1 was submitted through the Wash- ington State Historic Preservation Officer (SHPO) to the Na- tional Park Service (NPS) for approval in early November 1993, Historic photograph of the Leamington Hotel & Apartments. the property to prospective office developers, the homeless organized a protest, signaling the need for low-income housing in the area. The homeless advo- cacy organization then asked Plymouth Housing Group (PHG), a Seattle based non-profit housing developer, to purchase the building and rehabilitate it as low-in- come housing. PHG began investigating the feasibil- ity of the project in late 1992, and ultimately acquired the property in December 1993 for $2,100,000. Af- ter the purchase PHG leased parts of the building to the homeless advocacy organization for use as a night- time shelter until the building was ready to rehabili- tate. The rehabilitated lobby of the Pacific Hotel, with restored fireplace and trim details. DEVELOPMENT SCHEDULE Event Date Project Initiated Oct. 1, 1992 Architect Hired: Oct. 1, 1992 Initial contact with SHPO: Jun. 14, 1993 Part 1 approval (HRTC): Nov. 9, 1993 Low-income tax credit approved: Dec. 3, 1993 Part 2 approval (HRTC): Oct. 17,1994 Ownership structure organized: Oct. 21,1994** Financing approved: Oct. 25, 1994 Construction initiated: Oct. 26, 1994 Construction completed: Oct. 23, 1995 Leasing begun: Oct. 11, 1995 Final Certification for HRTC: Jan. 19, 1996 Notes: SHPO: State Historic Preservation Officer HRTC: Historic Rehabilitation Tax Credit * Initial feasibility study. ** Organized some time earlier, but not officially finalized until HRTC Part 2 approved Oct. 17, 1994. prior to acquisition of the property. NPS concurred with the SHPO and issued a preliminary determination that the building was eligible for individual listing on the National Register within a week. The Low-Income Housing Tax Credit was also applied for in 1993, and approval obtained in December of that year. The developers planned rehabilitation and systems improve- ments with Stickney Murphy Romine Architects. As the reha- bilitation plans progressed, the architects interacted with the State Historic Preservation Officer to discuss the project as early as June 1993. Detailed plans were created and, in the fall of 1994, Part 2 of the Historic Rehabilitation Tax Credit appli- cation was submitted to the state and forwarded to NPS. Ap- proval was issued by NPS in mid-October, although additional information on several items, such as cleaning and treatment of exterior surfaces, windows, detailing of the new entry doors and treatment of new and original stairways, was requested as architectural and engineering studies progressed. Financing was approved one week after the NPS Part 2 approval, and construc- tion on the project began the next day. 2 Case Studies in AFFORDABLE HOUSING Through Historic Preservation Number 1: Pacific Hotel, Seattle, Washington Project Overview Although renamed many times throughout its history, the Leamington has always operated as a transient hotel and apartment complex. Changes were made through its his- tory to compete with more modern establishments, in- cluding a refitting of the hotel wing to provide private bathrooms in the 1960s, and an upgrade of the kitchens and bathrooms in the apartments. Despite these alter- ations, the building has retained much of the original ar- chitectural details both on the interior and exterior. Case Study Highlights Combined Use of the Historic Rehabilitation Tax Credit and Low-Income Housing Tax Credit Retention of Historic Floor Plan Code Compliance - Accessibility The upgrades to the hotel in the 1960s were not enough to keep the property competitive, and by the early 1980s it was forced to close its doors. The building sat vacant for nearly a decade, having gone through foreclosure re- sulting in bank ownership, until a homeless advocacy or- ganization occupied a portion of the vacant property. Upon learning that the bank was considering the sale of PROJECT DATA The Pacific Hotel, located in downtown Seattle, was con- structed in 1916. Originally known as the Leamington Hotel and Apartments, the property is a well preserved example of an early twentieth century building type that has largely disappeared from Seattle's downtown core. In transitioning this building from its original use to affordable housing the developer had the distinct advantage of a truly compat- ible historic and future use. The Leamington was origi- nally constructed in two sections, one operating as a tran- sient hotel with small single rooms and the other offering apartments catering to extended stay hotel guests. The property is currently 100 percent low-income housing (112 units); however, the building's original design enabled the developer to serve two different populations in one build- ing. Half of the building provides 75 Single Room Occu- pancy (SRO) units for homeless persons, and the remain- der offers studio and one-bedroom units for independent, low-income individuals. The two share a common com- munity room, lobby, front desk and landscaped courtyard, but have separate elevators. Current Name: Pacific Hotel Historic Name: Leamington Hotel & Apartments Address: 317 Marion Street Seattle, WA Building type: Hotel/Apartments Date of Construction: 1916 Date of Rehabilitation: 1994/95 Old Use: Vacant Hotel & Apartments New Use: Apartments Type of construction: Concrete Frame with clay tile infill Gross building area: 45,500 sq.ft. Net rentable area: 24,005 sq.ft. (Apartment units only, excluding common spaces, support offices, etc.) U.S. Department of the Interior, National Park Service National Center for Cultural Resources Stewardship and Partnerships Technical Preservation Services Branch, Heritage Preservation Services August 1998 gram, one of the key resources used in the Pacific Hotel project, was under fire on the national level. The previous week the House Ways and Means committee had voted to sunset" the tax credit by the end of 1997, an action that was later defeated. In the case of the Pacific Hotel, $3.7 million in corporate equity was generated through the com- bined usage of the historic rehabilitation tax credit and LIHTC programs. Without these programs, it is doubtful that the Pacific Hotel could have been rehabilitated, nor received a second chance at life. In 1996, the Pacific Ho- tel received the State Preservation Officer's Award for Outstanding Achievement in Historic Rehabilitation. Ownership structure: Pacific Hotel Limited Partnership General Partner(s): Plymouth Housing Properties Limited Partner(s): National Equity Fund 1993 Limited Partnership Developer: Cheryl DeBoise, Executive Director (1) Plymouth Housing Group 2209 19 Avenue Seattle, WA 98121 (1) Current executive director is Paul Lambros. Architect: Stickney Murphy Romine Architects, PLLC Ron Murphy, Principal-in-Charge and Mike Romine, Project Architect 911 Western Avenue, #200 Seattle, WA 98104 General Contractor: MARPAC Construction (formerly Pacific Components) 1227 S. Weller Street Seattle, WA 98144 Preservation Consultant: Shirley L. Courtois 235 13th Avenue E., Suite 203 Seattle, WA 98102 State Historic Preservation Office: State of Washington Department of Community Development Office of Archaeology and Historic Preservation 420 Golf Club Road, S.E., Suite 201 Lacey, WA 98504 State Housing Authority: Washington State Housing Finance Commission 1000 Second Avenue, Suite 2700 Seattle, WA 98104-1046 This CASE STUDY IN AFFORDABLE HOUSING was pre- pared by Aleca Sullivan, Technical Preservation Services Branch, Heritage Preservation Services, National Park Ser- vice, with the assistance of Ron Murphy of Stickney Murphy Romine Architects. Special thanks are extended to Kaaren Dodge, Charles Fisher and Deborah Maylie of the National Park Service. CASE STUDIES IN AFFORDABLE HOUSING are de- signed to provide practical information on innovative tech- niques for successfully preserving historic structures while creating affordable housing. This Case Study was prepared pursuant to the National Historic Preservation Act, as amended, which directs the Secretary of the Interior to develop and make available to government agencies and individuals information concerning professional methods and techniques for the preservation of historic properties. Comments on the usefulness of this information are wel- comed and should be addressed to Affordable Housing Case Studies, Heritage Preservation Services, National Park Service, 1849 C Street NW (NC 200), Washington, D.C. 20240. CSAF-1 August 1998 TAX CREDIT ANALYSIS: Historic Rehabilitation Tax Credit Total development costs Total qualifying expenditures Rehabilitation Tax credit % Total Rehabilitation Tax Credit Equity Yield for Rehabilitation Credit Equity raised from Rehabilitation Credit Project $8,534,694 $5,925,041 x20% $1,185,008 80 $948,006 Low-Income Housing Tax Credit Analysis Total developing costs (should be the same as above) Total Qualifying expenditures Less Rehabilitation Tax Credit Eligible Basis Low-Income Proportion Qualifying Basis Annual Credit % Annual Credit Amount Total Low-Income Housing Tax Credit Equity yield for Low-Income Credit Total Equity raised from Low-Income Credit $8,534,694 $6,234,742 [$1,185,008] $5,049,734 130% (1) $6,564,654 9% $590,819 $5,908,190 45.84e (2) $2,708,079 Total Combined Equity: $3,656,085 Notes: (1) Project consists of 100% low-income units and is located in "qualified census tract", therefore a 30% boost/increase in credit amount is allowed. (2) Yield low due to: a) At that time the LIHTC was not yet a permanent program, resulting in few investors/little competition; and b) 100% of HRTC and LIHTC equity was invested up front, at the start of construction. Equity for the project was raised through syndication of both the Historic Rehabilitation and Low-Income Housing Tax Credits. The project benefited from its location in a Qualified Census Tract. To encourage development in these areas the Low-Income Housing Tax Credit allows a 30 percent boost in the credit amount earned, increasing the qualifying basis for this credit alone from $5 million to over $6.5 million. Both credits were syndicated through the National Equity Fund, providing a total combined equity of over $3.6 million to the project. individuals in studios and one-bedroom apartments; and homeless individuals in the Single Room Occupancy units (SRO's). In addition to providing a safe place to live, resi- dents now get a chance to reverse their misfortunes with on-site access to services such as employment training, medical and mental health assistance, transportation, and nutrition, addiction and financial counseling. Upon comple- tion of the rehabilitation, a representative of the adjacent and prestigious Rainier Club commented: "Initially, we were saddened by the decline of the once-gracious Leamington Hotel and Apartments. Windows were boarded up; Fourth Avenue and Marion were in decline. Then, along came Ply- mouth Housing Group. There was a vast improvement that I attribute to a board and staff of good, caring people. For those of us watching the progress of the rehabilitation, it was a classic case of metamorphosis - from caterpillar to butterfly. The residents of the Pacific Hotel are welcome neighbors." Summary Project Benefits Once a vibrant part of downtown Seattle, by 1992 the Pacific Hotel building had lost its former glory and had become a vacant eyesore. Foresight and creative planning by the Plymouth Housing Group saved this building from ruin. Peculiarities in the original de- sign made it possible to serve two different popula- tions in the same building: independent, low-income Ironically, as the rehabilitated building was being dedicated in October 1995, the Low-Income Tax Credit (LIHTC) pro- PROJECT FINANCING: Total Cost of Project Acquisition $2,113,092 Rehabilitation $6,421,602 Total $8,534,694 Total Rehab. Cost per Unit $56,828 * Represents total costs - not just qualifying costs SOURCES OF FUNDS A rehabilitated stairway in the Pacific Hotel. only feasible option was to create a new, level entry at a point where the sidewalk most closely aligned with the floor. To accomplish this, a large window opening was carefully modified to become a doorway by cut- ting away the sill. Two apartments were then mini- mally re-configured and a ramp (leading to an eleva- tor) was inserted between them. As a result, eight units and all common areas were made fully accessible. An- other code issue was caused by the balconets (ie. pseudo-balconies) which blocked emergency egress from 36 bedroom windows. The balconets are inte- gral to the historic integrity of the building's facade. The solution in this case was to cut the guardrail from the frame and remount it as a hinged "gate with a latch reachable from inside the unit. Grants/Subsidies: Total amount: SO Sources: No capital funds; however, homeless units receive operating subsidy from HUD's McKinney SRO MOD REHAB program over a 10-year period. Debt Financing: Total amount: $4,878,609 Sources: 1) Washington Mutual Bank (including FHLB interest rate write-down) 2) Washington State Housing Trust Fund 3) City of Seattle Dept. of Housing and Human Services 4) Loan from General Partner Equity: Total amount: $3,656,085 Source: National Equity Fund Total: $8,534,694 Although constructed with a concrete frame, the building's geographic location in a earthquake zone also mandated significant seismic improvement. The in- side of all exterior walls received a grid work of two by four framing to which the existing clay tile infill was anchored using heavy gauge copper wire. Struc- tural shear walls were installed at selected interior lo- cations and roof parapets braced. All exterior walls were covered on the inside with 32" insulation added to the wall cavities created by the two by four framing, This approach allowed the original single glazed win- dows to be retained while improving overall energy performance. out of consideration for safety issues and the fact that a similarly detailed stair remained in the building and was representative. Project Financing The east apartment wing contained two ornate exit stairs, one of which was extremely steep and non-code complying. After considerable study it was determined that the ground floor portion of the stair met code and could be retained while the steep portion (2nd through 4th floor) required replacement with a modern, code complying, stair. Prior to any action being undertaken the architects consulted with the National Park Ser- vice for guidance. The action was approved by NPS, Project financing for the Pacific Hotel was aided by a se- ries of low-interest and no-interest loans. Over 30 per- cent of the total development costs were provided by two loans from the City of Seattle in which the interest was forgiven and principal deferred. The State of Washington provided a low-interest loan to aid in acquisition costs of the project through the Washington State Housing Trust Fund. Washington Mutual Bank offered the most tradi- tional source of funds, enhanced by a Federal Home Loan Bank interest rate write-down. apartment wing and a four-story L-shaped hotel wing. Despite the difference in the overall sto- ries of the two building wings, the wings share a uniform cor- nice height due to the sharp downward slope of the street on which they are sited. The L- shaped wings are joined to form a single U-shaped building en- closing a large, private court- yard that was virtually inacces- sible. During the rehabilitation process, an opening from the ad- jacent lobby was sensitively cre- ated to provide tenant access into the courtyard. An exterior concrete ramp was installed for Code issues were met accessibility and a patio, trellis, with creative solu- fountain, tables and extensive tions. Accessibility is lands ing were added. provided by modify- ing an original Several code issues with a po- window into a tential to impact the historic ap- doorway. The balconets were pearance of the structure also re- retained by adding a quired creative solutions. Pro- hidden hinge viding disabled accessibility to allowing egress. the building was a major chal- lenge. Due to the sloping streets, all of the existing en- tries were located several steps up from the sidewalk. The The rehabilitated courtyard, fully accessible from the lobby. Rehabilitation Work The Pacific Hotel has successfully retained much of the historic fabric of the Leamington. Features such as the original floor plan, decorative balconies, terra-cotta, brick, windows and primary stairways are all extant to tell the his- tory of the property. This was accomplished through ad- dressing modern-day challenges with innovative solutions. The Leamington complex was originally built as separate but conjoined properties, including a three-story L-shaped STUDIO STUDIO ALLEY MARION STREET BOOM STUDIO warna ) 4TH AVENUE KEY PLAN STUDIO STUDIO STUDIO STUDIO BORM EAST WING, BEFORE STUDIO BORM BORM The Pacific Hotel rehabilitation successfully utilized the historic floor plan with only minimal changes, as is shown in these before and after plans of the development's east wing STUDIO STUDO STUDIO STUDIO EAST WING, AFTER Rehabilitation work was undertaken by Pacific Hotel Limited Partnership, a limited partnership formed by Plymouth Hous- ing Group. As the building was not individually listed on the National Register when the project began, a preservation con- sultant, Shirley L. Courtois, was brought in immediately to re- search the history of the building in preparation of the National Register nomination. This information then was utilized by Stickney Murphey Romine Architects, the architectural firm hired for the project, in the preparation of the "Part 1-Evalua- tion of Significance of the Historic Preservation Certifica- tion Application to take advantage of the Historic Rehabilita- tion Tax Credit. The Part 1 was submitted through the Wash- ington State Historic Preservation Officer (SHPO) to the Na- tional Park Service (NPS) for approval in early November 1993, Historic photograph of the Leamington Hotel & Apartments. the property to prospective office developers, the homeless organized a protest, signaling the need for low-income housing in the area. The homeless advo- cacy organization then asked Plymouth Housing Group (PHG), a Seattle based non-profit housing developer, to purchase the building and rehabilitate it as low-in- come housing. PHG began investigating the feasibil- ity of the project in late 1992, and ultimately acquired the property in December 1993 for $2,100,000. Af- ter the purchase PHG leased parts of the building to the homeless advocacy organization for use as a night- time shelter until the building was ready to rehabili- tate. The rehabilitated lobby of the Pacific Hotel, with restored fireplace and trim details. DEVELOPMENT SCHEDULE Event Date Project Initiated Oct. 1, 1992 Architect Hired: Oct. 1, 1992 Initial contact with SHPO: Jun. 14, 1993 Part 1 approval (HRTC): Nov. 9, 1993 Low-income tax credit approved: Dec. 3, 1993 Part 2 approval (HRTC): Oct. 17,1994 Ownership structure organized: Oct. 21,1994** Financing approved: Oct. 25, 1994 Construction initiated: Oct. 26, 1994 Construction completed: Oct. 23, 1995 Leasing begun: Oct. 11, 1995 Final Certification for HRTC: Jan. 19, 1996 Notes: SHPO: State Historic Preservation Officer HRTC: Historic Rehabilitation Tax Credit * Initial feasibility study. ** Organized some time earlier, but not officially finalized until HRTC Part 2 approved Oct. 17, 1994. prior to acquisition of the property. NPS concurred with the SHPO and issued a preliminary determination that the building was eligible for individual listing on the National Register within a week. The Low-Income Housing Tax Credit was also applied for in 1993, and approval obtained in December of that year. The developers planned rehabilitation and systems improve- ments with Stickney Murphy Romine Architects. As the reha- bilitation plans progressed, the architects interacted with the State Historic Preservation Officer to discuss the project as early as June 1993. Detailed plans were created and, in the fall of 1994, Part 2 of the Historic Rehabilitation Tax Credit appli- cation was submitted to the state and forwarded to NPS. Ap- proval was issued by NPS in mid-October, although additional information on several items, such as cleaning and treatment of exterior surfaces, windows, detailing of the new entry doors and treatment of new and original stairways, was requested as architectural and engineering studies progressed. Financing was approved one week after the NPS Part 2 approval, and construc- tion on the project began the next day. 2 Case Studies in AFFORDABLE HOUSING Through Historic Preservation Number 1: Pacific Hotel, Seattle, Washington Project Overview Although renamed many times throughout its history, the Leamington has always operated as a transient hotel and apartment complex. Changes were made through its his- tory to compete with more modern establishments, in- cluding a refitting of the hotel wing to provide private bathrooms in the 1960s, and an upgrade of the kitchens and bathrooms in the apartments. Despite these alter- ations, the building has retained much of the original ar- chitectural details both on the interior and exterior. Case Study Highlights Combined Use of the Historic Rehabilitation Tax Credit and Low-Income Housing Tax Credit Retention of Historic Floor Plan Code Compliance - Accessibility The upgrades to the hotel in the 1960s were not enough to keep the property competitive, and by the early 1980s it was forced to close its doors. The building sat vacant for nearly a decade, having gone through foreclosure re- sulting in bank ownership, until a homeless advocacy or- ganization occupied a portion of the vacant property. Upon learning that the bank was considering the sale of PROJECT DATA The Pacific Hotel, located in downtown Seattle, was con- structed in 1916. Originally known as the Leamington Hotel and Apartments, the property is a well preserved example of an early twentieth century building type that has largely disappeared from Seattle's downtown core. In transitioning this building from its original use to affordable housing the developer had the distinct advantage of a truly compat- ible historic and future use. The Leamington was origi- nally constructed in two sections, one operating as a tran- sient hotel with small single rooms and the other offering apartments catering to extended stay hotel guests. The property is currently 100 percent low-income housing (112 units); however, the building's original design enabled the developer to serve two different populations in one build- ing. Half of the building provides 75 Single Room Occu- pancy (SRO) units for homeless persons, and the remain- der offers studio and one-bedroom units for independent, low-income individuals. The two share a common com- munity room, lobby, front desk and landscaped courtyard, but have separate elevators. Current Name: Pacific Hotel Historic Name: Leamington Hotel & Apartments Address: 317 Marion Street Seattle, WA Building type: Hotel/Apartments Date of Construction: 1916 Date of Rehabilitation: 1994/95 Old Use: Vacant Hotel & Apartments New Use: Apartments Type of construction: Concrete Frame with clay tile infill Gross building area: 45,500 sq.ft. Net rentable area: 24,005 sq.ft. (Apartment units only, excluding common spaces, support offices, etc.) U.S. Department of the Interior, National Park Service National Center for Cultural Resources Stewardship and Partnerships Technical Preservation Services Branch, Heritage Preservation Services August 1998
