WHYPROVIDE A STABLE AND HEALTHY TRANSITION INTO A SELF-SUFFICIENT LIFESTYLE FOR THOSE REJECTED, HUNGRY, HOMELESS, OR UNLOVED
HOW
OFFER AN OPPORTUNITY TO THOSE IN-NEED THROUGH MENTAL DISTRESS AND EDUCATION
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MISSION sTATEMENT
Improve quality of life and social integration for adults of the community who are in need and mental distress due to mind or body illness, via a loving and holistic approach aimed at fostering strong relationships and building strong self-esteem, and while helping them to recover from unemployment, addiction, incarceration, homelessness, and other forms of social isolation.
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Community Possibilities provides a personal journey of recovery fostered by re-education, provoking a meaningful and satisfying life by instilling hope, self-control, and a sense of opportunity.
1 IN 4 PEOPLE EXPERIENCE MENTAL ILLNESS, THE RECOVERY COLLEGE INTENDS TO AID THOSE WITH MENTAL HEALTH DIFFICULTIES BY PROVIDING THEM OPPORTUNITIES TO SUCCEED. Workshops and courses offered by Community Possibilities are designed to provide the tools to make thier new direction a reality by helping the student become an expert in their own recovery. Community Possibilities offers a learning approach that compliments the existing services provided by New Directions and is at the heart of everything we do. Every course and workshop we offer is co-designed and co-run by trainers with lived experience working alongside students and peer counselors. Our courses are free of charge and open to everyone. |
Re-ED is an ecologic model that views the person as inseparable from the community and social context. Recovery impacts the different settings of the person’s life space through careful coordination of care.
Similar to a recent high school graduate, those who are recently discharged from mental health facilities and incarceration have lived in a controlled setting supported by others. However, as people transition from a controlled environment to college or the workforce, they become responsible for managing their own lives. No-one tells them to get up, to go to class or work, or how to maintain their personal health. New Directions aids in learning how to personally-manage a student's life goals, health, career path, and strategies unique to their personal goals. Re-ED is strength-based, emphasizing the person’s assets and the importance of relationships and structure. New Directions views structure as holistic and is concerned with physical, spiritual, and mental health aspects. Re-ED focuses on the strengths inherent in each person, employing a variety of approaches to problem solving. |
Executive Summary :
This investment proposes the development, construction, and operation of a 24,000 square foot Mental Health Recovery College, to include 144 one-bedroom low income studio-style housing and businesses. This development is to be on a 77 acre plot of land located at 195 Whiteway Road in Sherman, Texas.
The developer has conducted a market feasibility analysis suggesting a need for 150 one-bedroom low income homes in Grayson County. The county hosts over 200 homeless persons, 20 patients exiting Behavioral Health Centers per month, and 100 inmates diagnosed with at least one mental health disorder in the Grayson County Jail; all of which have little to no resources regarding a residential care option or a recovery program during their transition back to a self-sustaining lifestyle. The population previously mentioned has a high reincarceration rate with 26% having 3 or more arrests. Project Community Possibilities is designed to reduce reincarceration or recidivism and provide hope to those struggling with their transition to an independent lifestyle.
This proposed development is to be constructed to the highest standards of design. It will stand apart from the other low-income developments in our community as it will be designed, not only as a beautiful community, but as a safe place to heal.
New Directions Inc. planning and design was initiated three years ago by Arthur Horn, the previous Executive Director of Four Rivers Outreach Inc., a non-profit established by Horn in 2006 for adults with substance abuse issues. Four Rivers Outreach Inc. began in a two-bedroom house and grew to become one of the largest non-profits in Grayson County. Eighty-percent of Four Rivers’ clients also had mental disorders. Arthur Horn sought solutions, however, a pure recovery program for adults with mental disorders did not exist in the area. Horn researched recovery models for adults with mental disorders, and established New Directions as a 501(c)3 organization.
New Direction’s solution to this issue is a Recovery College with a complimentary residential option. The Recovery College will be housed in a 24,000 square foot facility to include a full-kitchen, laundry options, showers, an auditorium/multi-purpose room, emergency beds, a day room, class rooms, and a library/study room.
Project Community Possibilities is meant to provide those with mental health difficulties the same opportunities as everyone else. It is ultimately a personal journey towards a meaningful and satisfying life and New Directions aids in said personal journey by providing a hopeful and controlled opportunity to succeed. The workshops and courses offered aim to provide the tools to help students become an expert their own recovery.
The proposed recovery college offers a learning approach that complements the existing services provided by New Directions and is at the heart of everything New Directions does. Every course and workshop offered is co-designed and co-run by trainers with lived experience, working alongside students and peer counselors. Our courses are free of charge and available to:
A referral from a clinician or service isn’t required to enroll at the college, although, New Directions also takes referrals from Law Enforcement and Medical Professionals to include Recovery Managers from the Department of Health and Human Services. As a student, you are able to choose which courses interest you or suit your needs.
As a senior-year high school student transitioning from a supportive and controlled environment has difficulties transitioning to the freedoms accompanied by becoming an independent college student; those with mental health disabilities transitioning from a system dictating their lives to the freedoms accompanied by leaving said systems face similar difficulties. Those with mental health disabilities have difficulties choosing their career paths and developing strategies to obtain their goals just as a young college student would.
The person becomes a student and is not identified as a patient or client. The person with the guidance of a counselor develops their life goals and a Person-Centered Care Plan. The college offers classes such as how to deal with anxiety, depression, fear, and a range of other emotions. The path to the student's goals are mapped out with navigational aids for them to handle each emotion and issue in a healthy way. As life is not linear, but liquid, we encounter storms and barriers that interrupt our path. A tutor (peer counselor) is provided to assist the student in getting back on course by addressing said barriers. The student is encouraged to take charge of their recovery process. This as an evidenced based program with a 70% success rate.
Classes for GED, vocational, job training and placement, including life management with an optional a residential component will be offered.
INVESTMENT GOALS AND PARTNERSHIP STRUCTURE
Project Community Possibilities will be setup as a Limited Partnership. The managing general partner will be a non-profit and will maintain the entire project including a property manager to manage the housing development. Limited partners are investors who contribute capital for the investment. In lieu of a carried interest, the Developer will receive 5% of the total development costs. It should be noted that most, if not all fees, will be reinvested into the project.
INVESTMENT GOALS
BUSINESS GOALS
DEVELOPER CONTRIBUTION OF SERVICES
The Developer will contribute services to the partnership for a fee of 5% of total development costs.
DISPOSITION OF CASH FLOW/ CASH PROCEEDS
All cash flow from project will be distributed as follows:
DEVELOPER’S ROLE AND RESPONSIBILITIES
OPPORTUNITY ZONE
This project is located in an Opportunity Zone which gives investors deferred taxes and tax credits on the investment. Compared to a typical portfolio, there is potential to double after-tax profits with a Qualified Opportunity Fund. The following are Opportunity Zone benefits:
INVESTMENT SUMMARY
The first phase of the project will be funded by a combination of $300,000 in equity capital (2%), $14,000,000 in investments (81%), and $3,000,000 in 0% interest debt (17%) acquired through the Texas Department of Housing and Community Affairs. During the initial phase one interim construction loan, the investors will be required to secure the loan through personal guarantees. The second phase interim construction loan will be funded in whole utilizing stabilized status in the first phase.
Total Project Costs : $14,230,636
Total Cash Equity : $300,000
Total Debt : $3,000,000
Pre-Tax Annualized Cash on Cash Return : 20%
This investment proposes the development, construction, and operation of a 24,000 square foot Mental Health Recovery College, to include 144 one-bedroom low income studio-style housing and businesses. This development is to be on a 77 acre plot of land located at 195 Whiteway Road in Sherman, Texas.
The developer has conducted a market feasibility analysis suggesting a need for 150 one-bedroom low income homes in Grayson County. The county hosts over 200 homeless persons, 20 patients exiting Behavioral Health Centers per month, and 100 inmates diagnosed with at least one mental health disorder in the Grayson County Jail; all of which have little to no resources regarding a residential care option or a recovery program during their transition back to a self-sustaining lifestyle. The population previously mentioned has a high reincarceration rate with 26% having 3 or more arrests. Project Community Possibilities is designed to reduce reincarceration or recidivism and provide hope to those struggling with their transition to an independent lifestyle.
This proposed development is to be constructed to the highest standards of design. It will stand apart from the other low-income developments in our community as it will be designed, not only as a beautiful community, but as a safe place to heal.
New Directions Inc. planning and design was initiated three years ago by Arthur Horn, the previous Executive Director of Four Rivers Outreach Inc., a non-profit established by Horn in 2006 for adults with substance abuse issues. Four Rivers Outreach Inc. began in a two-bedroom house and grew to become one of the largest non-profits in Grayson County. Eighty-percent of Four Rivers’ clients also had mental disorders. Arthur Horn sought solutions, however, a pure recovery program for adults with mental disorders did not exist in the area. Horn researched recovery models for adults with mental disorders, and established New Directions as a 501(c)3 organization.
New Direction’s solution to this issue is a Recovery College with a complimentary residential option. The Recovery College will be housed in a 24,000 square foot facility to include a full-kitchen, laundry options, showers, an auditorium/multi-purpose room, emergency beds, a day room, class rooms, and a library/study room.
Project Community Possibilities is meant to provide those with mental health difficulties the same opportunities as everyone else. It is ultimately a personal journey towards a meaningful and satisfying life and New Directions aids in said personal journey by providing a hopeful and controlled opportunity to succeed. The workshops and courses offered aim to provide the tools to help students become an expert their own recovery.
The proposed recovery college offers a learning approach that complements the existing services provided by New Directions and is at the heart of everything New Directions does. Every course and workshop offered is co-designed and co-run by trainers with lived experience, working alongside students and peer counselors. Our courses are free of charge and available to:
- Supporters (careers, family and friends) of New Directions’ students
- People who have been discharged from Jail, Behavioral Health Centers, State Hospitals and/or are Homeless
- New Directions volunteers or peer supporters
A referral from a clinician or service isn’t required to enroll at the college, although, New Directions also takes referrals from Law Enforcement and Medical Professionals to include Recovery Managers from the Department of Health and Human Services. As a student, you are able to choose which courses interest you or suit your needs.
As a senior-year high school student transitioning from a supportive and controlled environment has difficulties transitioning to the freedoms accompanied by becoming an independent college student; those with mental health disabilities transitioning from a system dictating their lives to the freedoms accompanied by leaving said systems face similar difficulties. Those with mental health disabilities have difficulties choosing their career paths and developing strategies to obtain their goals just as a young college student would.
The person becomes a student and is not identified as a patient or client. The person with the guidance of a counselor develops their life goals and a Person-Centered Care Plan. The college offers classes such as how to deal with anxiety, depression, fear, and a range of other emotions. The path to the student's goals are mapped out with navigational aids for them to handle each emotion and issue in a healthy way. As life is not linear, but liquid, we encounter storms and barriers that interrupt our path. A tutor (peer counselor) is provided to assist the student in getting back on course by addressing said barriers. The student is encouraged to take charge of their recovery process. This as an evidenced based program with a 70% success rate.
Classes for GED, vocational, job training and placement, including life management with an optional a residential component will be offered.
INVESTMENT GOALS AND PARTNERSHIP STRUCTURE
Project Community Possibilities will be setup as a Limited Partnership. The managing general partner will be a non-profit and will maintain the entire project including a property manager to manage the housing development. Limited partners are investors who contribute capital for the investment. In lieu of a carried interest, the Developer will receive 5% of the total development costs. It should be noted that most, if not all fees, will be reinvested into the project.
INVESTMENT GOALS
- Develop a property that is at the highest level of service and finish out
- Create a brand based on design characteristics and marketing strategies
- Maximize cash flow and stabilization with aggressive and professional management techniques
- Provide annual cash distributions to investors beginning in the 3rd or 4th year of operation
- Provide a cash-on-cash rate of return of 10%
BUSINESS GOALS
- Utilize location and access to absorb market conditions
- Hire Property Management to implement strategies that will maximize the return on investment
- Establish a presence as the #1 Supportive Housing and Mental Health Recovery in the Texoma area
- Create aggressive pricing strategies that will evolve based on market conditions and occupancy rates
- Establish fast lease up schedule to stabilization
DEVELOPER CONTRIBUTION OF SERVICES
The Developer will contribute services to the partnership for a fee of 5% of total development costs.
DISPOSITION OF CASH FLOW/ CASH PROCEEDS
All cash flow from project will be distributed as follows:
- First to normal operating expenses of the project
- Second to normally scheduled payments of principal and interest on first lien mortgage
- Third to an operating reserve
- Fourth to all equity partners based on owned interest
DEVELOPER’S ROLE AND RESPONSIBILITIES
- Research and identify conditions of the marketplace
- Conduct a feasibility study to establish economic projections
- Find and establish a suitable site for maximum efficiency and exposure
- Work with design and engineering consultants
- Secure proper zoning, special use permits, platting approvals, and site plan approvals
- Develop a cost summary and investment analysis to project future performance
- Organize partnership and raise equity capital needed for development
- Secure financing for interim construction and operations
- Hire a property management company to oversee day-to-day operations
OPPORTUNITY ZONE
This project is located in an Opportunity Zone which gives investors deferred taxes and tax credits on the investment. Compared to a typical portfolio, there is potential to double after-tax profits with a Qualified Opportunity Fund. The following are Opportunity Zone benefits:
- Re-invest any form of capital gains.
- Defer your taxes on your original capital gain until the end of 2026
- Reduce your taxes by up to 100% on capital gains
INVESTMENT SUMMARY
The first phase of the project will be funded by a combination of $300,000 in equity capital (2%), $14,000,000 in investments (81%), and $3,000,000 in 0% interest debt (17%) acquired through the Texas Department of Housing and Community Affairs. During the initial phase one interim construction loan, the investors will be required to secure the loan through personal guarantees. The second phase interim construction loan will be funded in whole utilizing stabilized status in the first phase.
Total Project Costs : $14,230,636
Total Cash Equity : $300,000
Total Debt : $3,000,000
Pre-Tax Annualized Cash on Cash Return : 20%
NEW DIRECTIONS, INC.
SHERMAN, TEXAS
COST SUMMARY FOR HOUSING, BUSINESS AND
COMMUNITY FACILITY CONSTRUCTION
PHASE ONE
144 HOUSE DEVELOPMENT COST
$8,805,636.00
PHASE TWO
BUILDING NO. 1 -
Automotive Restoration Facility
SQUARE FEET 40,000
COST PER SQUARE FEET $60.00
TOTAL COST $2,400,000.00
BUILDING NO. 2 -
Hydroponic Gardening Facility
SQUARE FEET 35,000
COST PER SQUARE FEET $35.00
TOTAL COST $1,225,000.00
BUILDING NO. 3 -
Equine Center
SQUARE FEET 10,000
COST PER SQUARE FEET $30.00
TOTAL COST $300,000.00
TOTAL BUSINESSES FACILITIES COST
$3,925,000.00
PHASE THREE COMMUNITY FACILITY COST
$5,614,992.00
TOTAL COST OF PHASE 1, 2 & 3 AND PROPERTY
$18,345,628.00
144 HOUSE DEVELOPMENT COST
$8,805,636.00
PHASE TWO
BUILDING NO. 1 -
Automotive Restoration Facility
SQUARE FEET 40,000
COST PER SQUARE FEET $60.00
TOTAL COST $2,400,000.00
BUILDING NO. 2 -
Hydroponic Gardening Facility
SQUARE FEET 35,000
COST PER SQUARE FEET $35.00
TOTAL COST $1,225,000.00
BUILDING NO. 3 -
Equine Center
SQUARE FEET 10,000
COST PER SQUARE FEET $30.00
TOTAL COST $300,000.00
TOTAL BUSINESSES FACILITIES COST
$3,925,000.00
PHASE THREE COMMUNITY FACILITY COST
$5,614,992.00
TOTAL COST OF PHASE 1, 2 & 3 AND PROPERTY
$18,345,628.00
