About the development 

The Pearl is a 76-unit affordable housing development located in Jackson. This historic adaptive re-use development transformed a Holiday Inn Motel into 76 affordable apartments reserved for seniors aged 55+, as well as an on-site healthcare clinic. The income limit is 60% AMI, and the apartments have units reserved for people with disabilities, seniors, and formerly homeless individuals and families. 

This development was publicly financed with 9% Low Income Housing Tax Credits, State and Federal Historic Tax Credits, State and Federal New Markets Tax Credits, HOME funds, Housing Trust Funds, the Federal Home Loan Bank Affordable Housing Program, and the American Rescue Plan. Private assistance included funding from Regions Bank, Trustmark Bank, the Housing Affordability Breakthrough Challenge, and the Medicaid Managed Care Organizations low-cost debt. The total development cost for the project was $28.85 million. 

The motel had profound significance in Jackson’s history. Constructed in 1962 along Highway 80, the motel played a pivotal role in the mid-20^th-century surge in interstate travel. Rehabilitation efforts preserved many features of the historic site, including a “floating” stairway and pool porch.

While much of the project was aimed at preserving the site, the Pearl underwent extensive rehabilitation to transform former hotel rooms into apartments. This included filling in the swimming pool, removing synthetic stucco from the railings, installing all new electrical, plumbing, and HVAC, and adding and removing doors as needed for the building’s new use. 

Contributors to success in the development:

• Addressing the needs of the community: The Pearl was a Gulf Coast Housing Partnership (GCHP) Health + Housing development. Health + Housing addresses two issues in the region: lack of funding for affordable housing and health disparities and how those play a significant role on the health outcomes for residents. Creating developments that can address multiple issues at once increases the impact of the sites and can alleviate the needs of the community.
• Locating a site that is feasible for development: The project site was originally bought in 2014, and construction began when a proper capital stack was made. While sites like The Pearl are picked based on funding eligibility, it is also important to find sites that are located near basic requirements such as a school, a healthcare facility, a grocery store, public transportation, etc. The development was near all these amenities, making it a viable project site. Developing housing with access to these resources is important in providing tenants with a good quality of life.   
• Utilizing sustainability features: The Pearl was constructed to National Green Building Standards (NGBS) Silver rating. To attain an NGBS Silver rating, a building must meet various requirements across several categories, including energy efficiency, water conservation, indoor environmental quality, lot and site development, and operation and maintenance. At The Pearl this included energy-efficient appliances and systems and water-efficient fixtures. Not only did adhering to NGBS make the development eligible for more funding, it also benefited the tenants by lowering electricity bills thanks to all-electric energy efficient kitchen appliances and washers and dryers. Air quality within the homes was improved with the use of bathroom ventilation systems and Zero-VOC paint. This creates healthier and safer homes for residents, while also prioritizing efficiency.
• Being proactive in gaining support: Development for The Pearl was supported and encouraged by the community in Jackson. As the site had remained vacant for a long time, the neighbors were happy to see the development process start. As noted by nearby businesses, building the project would generate more traffic and bring more people to the area to patronize businesses. Garnering support from the community is necessary for the developers, but also for future residents. The community should be welcoming to tenants and should also be willing to help with the development.

Key lessons for other developers:

• Set aside a part of the budget for unexpected expenses: Many rehabilitation projects occur on sites that have been unused and vacant for many years. The project site was vacant since 2005, accumulating a lot of trash and debris from vandalism and neglect. Many historic features that needed to be preserved had been damaged. Additionally, there were water and construction challenges as the city of Jackson lacked significant water infrastructure needed for the project. All these unexpected costs accumulate, so it is important to have a part of the budget allocated to emergencies.
• Examine nontraditional sources of funding: The development used low-cost debt from Medicaid Managed Care Organizations to help fund the site with accessible healthcare. It was also awarded a $2 million grant as one of six winners out of 900 applicants in the Enterprise Community Partners and Wells Fargo Affordable Housing Breakthrough Challenge in 2020. The adaptive re-use of a historic project into affordable housing allows for a project that achieves the intention of Historic Tax Credits. Utilizing non-traditional sources of funding ensures that your project can proceed even if general sources are unavailable. Many public funding sources are extremely competitive and not guaranteed, so finding a variety of sources can keep the project afloat.