To read the original piece in the Southeast Affordable Housing Business click here
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City of Refuge, in partnership with North American Properties and Pencor Construction, is breaking ground this spring on a $2.2 million adaptive reuse project in Atlanta with longstanding ties to its surrounding community. City of Refuge is a Christian-affiliated nonprofit that offers housing and programs in areas such as youth support, health and wellness, and vocational development.
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 In addition to helping people with its services, the organization is beginning to add real estate to its toolkit. City of Refuge’s plans are currently focused on transforming The Danzig Motel, which opened in 1959, into The 345, a 31-unit community that will primarily serve men from the Westside of Atlanta. The project is scheduled to open in March 2022. 
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Upon completion, the three-floor housing community will be operated according to the needs of each resident. The first floor will be dedicated to veterans and citizens returning from incarceration; the second floor will house men overcoming addiction and those with manageable mental health challenges; and floor three will serve young men ages 18 to 24 who are committed to furthering their education, working full-time or enrolled in one of City of Refuge’s vocational training programs taught in the onsite Workforce Innovation Hub.
 
Residents will receive housing and access to City of Refuge’s wraparound services for up to three years. This includes budgeting, mentorship, employment, counseling, addiction recovery, healthcare, childcare, basic life skills, fitness, and more. 
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The Westlake and Bankhead areas surrounding the project, like many other urban neighborhoods in Atlanta, face gentrification. According to Bruce Deel, CEO of City of Refuge, this project will enable the neighborhood’s original residents to retain a foothold in their community, not just socially, but physically as well.
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 “We now have the opportunity to transform a landmark building that sits on the corner that’s been here for many years,” says Deel. “Everybody sees it when they drive by. They see the disrepair. So, the parallel is we can transform that building and then we will be able to enhance and increase our ability to transform individual lives as they take up residence in the building.”
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The location is an important piece of this project, and the development team expects the high visibility of the site to have a ripple effect. “This building is the epicenter of the community,” says Jared Penny, CEO of Pencor Construction. “It’s a powerful statement. The community and residents around the site will be seeing for themselves the transformation that can happen on a property like this.”
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Penny explains that the “good bones” of the building were the deciding factor of whether to raze and build anew, or retain the original structure. With the exterior walls in good shape, the next step will be to determine what is salvageable and what needs extensive repairs. “The traditional exterior brick on the outside was strong and it speaks to the character of that building and the character of the community around it,” says Penny. 
An experienced structural engineering team is critical to the success of an adaptive reuse project because it can identify what needs to be replaced, he explains
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“These projects are a little more challenging, but also a lot more fun,” Penny points out. “The building will probably retain most of its original character. I can imagine the impact of letting the community and the residents around it watch the transformation that happens on a property like this — one that’s centered and anchored in the middle of a community. That’s a pretty powerful statement in itself.” 
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The restored 74-unit building opened in fall 2020. Funding sources included low-income housing tax credits and equity from the Jackson Housing Trust Fund, which allows Mississippi access to a portion of the National Housing Trust Fund. The total development cost was $15.5 million, with construction costs being approximately $11 million.
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The community serves a growing number of retirees on limited budgets. Davenport explains that downtown Hattiesburg has become a retirement destination. 
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Retirees often enjoy living in college towns, and Hattiesburg is also home to the University of Southern Mississippi as well as many restaurants, churches, and other civic buildings near the development site and within walking distance.

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