Affordable Housing Post-Hospital Stay
During the summer of 2021, Nashville opened a medical respite center where unhoused individuals can stay upon release from the hospital. Eventually, the plan is for this affordable housing community to have 22 tiny homes. While this type of “village” is the first of its kind in Nashville, it is not the only one in the country.
Providence Eureka House in California will be another example of this type of medical housing. St. Joseph’s Hospital will be leading this project. With the help of government funding, the hospital plans to convert the former Humboldt Inn to provide over 40 units for homeless individuals. Six of those units will specifically house patients released from a hospital stay.
Affordable Housing and Healthcare
In early 2020, we published an article about the connection between hospitals and housing properties. In that article, we discussed a few hospitals that currently offer or had planned to provide affordable housing units for patients with nowhere to go. Research suggested a strong connection between health and housing, and hospitals responded.
As we referenced in our previous article, the American Hospital Association suggests that nonmedical circumstances could determine as much as 40% of health outcomes. Their list of factors includes components like food, income, and, of course, housing. More recently, the Boston Foundation published a study that echoed the correlation between housing and health. (The full report from this study is available here.)
Health, Affordable Housing, and Community Impacts
It seems that several hospitals or related entities have taken a closer look at the housing side of healthcare. In 2009, Nationwide Children’s Hospital began a program called Healthy Neighborhoods Healthy Families (HNHF). They worked with a few community partners to view an entire neighborhood as a patient. In their four-tiered approach, they handled basic home repairs, completed full rehab projects, assisted with a tax credit, and provided affordable housing for low-income families.
It has been more than ten years since the project began. During that time, Nationwide Children’s Hospital has invested more than $10 million. They’ve also assisted in earning more than $80 million more for projects that would help the neighborhood. The results have been quite impressive.
The housing stock in the area increased. The community has seen an increase in jobs and a decrease in crime rates. They also experienced fewer emergency room visits from the children in the area and fewer in-patient stays. Overall, the community has improved because of the hospital’s investment in the housing sector.
Affordable Housing and Adaptive Reuse
With positive outcomes unfolding from the hospital and affordable housing collaborations, more hospitals may choose to embark on affordable housing projects in the future. As in the case of Providence Eureka House, some health groups will opt for adaptive reuse (AdRu) projects. AdRu can impact more than the building owner or its occupants. Renovated buildings tend to revitalize the community. They also attract more jobs, restaurants, or shopping areas to the neighborhood. In the long run, AdRu affordable housing can impact community livability and perhaps eventually improve the value of surrounding buildings.
Healthcare Real Estate Investing
As health systems continue to invest in affordable housing options for their patients, they should strongly consider partnering with healthcare real estate brokers. The housing sector and healthcare sector are traditionally two separate markets within commercial real estate. But when medical care is involved, health professionals will need to make sure they abide by healthcare-specific legislations.
HBRE is a healthcare real estate practice solely focusing on medical real estate transactions. Our team of experienced advisors assists healthcare groups and investors who choose to buy, sell, or lease healthcare properties. As a full-service real estate team, we serve both landlords and tenants, and we offer ongoing real estate services on behalf of both parties. Healthcare professionals interested in investing in a new property, such as affordable housing, can trust HBRE to serve their needs.
If you are interested in learning more about investing in commercial real estate, or if you have questions about buying, selling, or leasing a commercial property, please contact an HBRE advisor. Our team of experienced CRE professionals have the skills and insight to assist with all property transactions. To reach out to us directly, email [email protected] or call 615-564-4133.
