How to Analyze a 225-Unit Senior Affordable Housing Deal with Andrea Garcia

Turning neglected properties into thriving communities

What happens when you take a rundown senior housing community filled with pests, poor management, and outdated systems, and reimagine it as a safe, affordable, and thriving place for seniors? That’s exactly what Andrea Garcia, a multifamily investor and affordable housing expert, is doing with her latest 225-unit 55+ community acquisition in Los Angeles.

Andrea has overseen more than $1.5 billion in real estate transactions and specializes in repositioning properties into affordable housing through creative financial structures like tax-exempt bonds, welfare exemptions, and nonprofit partnerships. In this episode of the Affordable Housing & Real Estate Investing Podcast, she sits down with host Kent Fai He to break down exactly how she underwrites and structures these complex deals to deliver both social impact and strong investor returns.

How do you underwrite a 55+ affordable housing community?

Underwriting a senior affordable housing project isn’t as simple as comparing rents to the property next door. Andrea explains that you need to pull three times as many comps because you’re not only looking at traditional market-rate apartments, but also:

• Independent living facilities (with optional services like laundry or transportation).
  

• Assisted living facilities (with higher-touch care like medication support).
  

• Local affordable housing rents tied to regulatory agreements.
  
  

This broader underwriting approach allows her team to explore multiple business plans—market rate, assisted living, or independent living—and decide which path maximizes sustainability while keeping rents affordable.

What role do regulatory agreements play in senior housing deals?

One of the first steps Andrea takes is reviewing all regulatory agreements tied to a property. These can include:

• Land Use Restrictive Agreements (LURAs): Binding rules on affordability, age restrictions, and rents.
  

• Tax credit agreements: Which dictate income limits and compliance rules.
  

• Zoning restrictions: Confirming if the property is legally designated for senior living.
  
  

Failing to understand these restrictions before acquisition can be catastrophic. As Andrea puts it, “You need to know who can live there, what rents you can charge, and how long you can charge them for—before you go in and purchase this type of asset”.

How do welfare exemptions and property tax savings impact the deal?

One of the biggest “levers” Andrea pulls is the welfare exemption. By partnering with a nonprofit, she can apply for a property tax exemption that saves hundreds of thousands per year.

In some cases, these savings reach $500,000 annually. Instead of paying that money in taxes, it can be reinvested into renovations, pest control, and upgrades that directly improve residents’ quality of life.

The exemption requires:

• A limited partnership with a nonprofit.
  
  

• A set percentage of units reserved for low-income residents (often 40% or more).
  
  

• Annual compliance reporting to prove affordability requirements are being met.
  
  

How do tax-exempt bonds and equity investors fit into the capital stack?

Transforming distressed communities into affordable housing takes significant capital. Andrea highlights three funding sources her team frequently combines:

1. Tax-exempt bonds – Debt issued through state authorities at lower interest rates because the funds serve a public good.
   
   

2. Equity investors – Partners who provide upfront capital for development and earn returns through the tax credit structure.
   
   

3. Tax credits (LIHTC) – Allocated by states, these credits can be sold to investors for cash that goes directly into renovations.
   
   

By stacking these tools, Andrea converts market-rate properties into sustainable, affordable housing while still generating investor returns.

What does the welfare exemption application process look like?

Andrea explains that applying for a welfare exemption is not for the faint of heart. Her team spends weeks assembling:

• Corporate brochures and company history.
  
  

• Borrower financials from the past three years.
  
  

• Rent comps and pro forma financial models.
  
  

• Proof of nonprofit partnership and bond counsel.
  
  

She emphasizes that “multifamily is a team sport”—these applications require attorneys, advisors, and property managers working together. For large projects like Andrea’s 225-unit deal, authorities often prioritize applications because they impact more residents.

Key Insights from Andrea Garcia

• Pull more comps than usual: Senior housing requires market-rate, independent living, and assisted living comparisons.
  
  

• Leverage welfare exemptions: Property tax savings can be in the hundreds of thousands annually.
  
  

• Partner with nonprofits: This unlocks tax-exempt bonds, subsidies, and compliance advantages.
  
  

• Understand the capital stack: Combine bonds, equity, and tax credits to fund large projects.
  
  

• Multifamily is a team sport: Success requires property managers, attorneys, nonprofits, and strong operators.
  
  

Best Quotes from the Episode

“You need to know who can live there, what rents you can charge, and how long you can charge them for—before you go in and purchase this type of asset.” – Andrea Garcia

“The most I’ve seen saved on a property per year is $500,000 to $600,000 in property taxes.” – Andrea Garcia

“Multifamily is a team sport. You can’t pull it off on your own.” – Andrea Garcia

“It’s not just a place for your grandmother to live. It’s a way of life and quality of life that you’re creating.” – Andrea Garcia

Common Questions About Senior Affordable Housing Deals

What is a welfare exemption in affordable housing?
It’s a property tax exemption that significantly lowers operating costs if a property is reserved for low-income or senior residents in partnership with a nonprofit.

Why do senior housing deals require more comps?
Because you need to evaluate market-rate apartments, independent living facilities, and assisted living facilities to build a complete financial picture.

Do all affordable housing deals require nonprofits?
Not all, but partnering with a nonprofit often unlocks tax-exempt bonds and property tax savings that make deals financially viable.

How competitive is the welfare exemption process?
Very. Strong operator track records, larger unit counts, and well-prepared applications are more likely to be approved.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments.

DM me @kentfaihe on IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.