NOVA-RO CORPORATION
AFFORDABLE SENIOR HOUSING
A Community Service Project of
THE ROTARY CLUB OF NOVATO, CA

BACKGROUND/HISTORY
For the past twenty-eight years, the Nova-Ro Corporation has provided affordable housing for needy Novato senior citizens. The Nova-Ro Corporation is a separate 501(c)(3) non-profit corporation created through the vision and efforts of  Novato Rotary Club members solely for this affordable senior housing purpose.  The corporation is governed by an all volunteer nine-member Board of Directors, composed of Novato Rotary Club members, serving 3 year staggered terms. The Board's primary focus is on broad policy matters to ensure the long term provision of affordable senior housing to meet the needs of the Novato community. Nova-Ro offers qualifying senior citizens independent living apartments at affordable rents targeted to 70% of market rents for comparable units in Novato. It contracts for professional property management services for the day-to-day operation and maintenance of its apartment complexes including applicant in-take, documentation and processing while the Board's Rental Committee actively participates in applicant interviews and final resident selection.  Each year the Board hosts its annual Christmas Holiday party and summer Bar-B-Q for Nova-Ro residents which nurtures a sense of community within each complex. The combined complexes offer 126 attractive and conveniently located apartment units for affordable, independent living within walking distance of Downtown Novato.  Given the escalating cost of housing in Marin County especially for needy seniors, there continues to be a waiting list of 40+ applicants interested in Nova-Ro's affordable apartments.

NOVA-RO I (1973-1975)
Opened in 1975, the 30-unit Nova-Ro I apartment complex valued at $500,000 was conceived, designed and built by Novato Rotary Club members as a community service project. Using $6000 in seed money from the Novato Rotary Club and donated Rotarian labor and materials valued at $200,000, it was built with a $300,000 conventional bank loan which included the purchase of the land. The mortgage has since been paid in full. Amenities include interior courtyard, a single story commons building with a meeting room, kitchen, manager's office, and a laundry room, and 13 on site parking spaces. The apartments are arranged in a two story building composed of 24 studios ranging from 418-496 square feet and 6 one bedroom units of 674 square feet. Current rents average about $392.

NOVA-RO II (1981-1985)
Opened in 1985, the 56-unit Nova-Ro II apartment complex following upon the success of Nova-Ro I was also designed and built as a community service project by Novato Rotary Club members. Of the $2.5 million project value, $600,000 was the value of donated land (2.7 acre parcel), materials and labor and $500,000 was a grant from the Marin Community Foundation.  The $1.4 million mortgage has been refinanced once and is being paid down at $150,500 per year. Amenities include a central landscaped courtyard, a single story commons building with meeting room, kitchen, manager's office, storage and a laundry room and 30 on site parking spaces. Of the 56 apartments, 53 are 630 square feet one bedroom units and three are 688 square feet units, fully handicapped accessible, and  are arranged in three, two story buildings. Current rents average about $527. Nova -Ro continues to own and manage both NR I and NR II and to set aside deferred maintenance reserves from current income to ensure proper life cycle maintenance of both complexes.

RECOGNITIONS
In 1976 Novato Rotary was presented a National Volunteer Activist Award ( 1 of 6 nationwide) by President Gerald Ford in a White House ceremony recognizing the Nova-Ro I project as a national model of  humanitarian community service. In 1986 the Nova-Ro II project was presented a Private Sector Initiative, "We Care" (C flag)Program Award for outstanding volunteer achievement (1 of 1000 nationwide) by President Ronald Reagan in a White House ceremony.

NOVA-RO III (1998- 2003)
The goal of creating Nova-Ro III, a new 40-unit apartment complex comparable to NR I and NR II, has become a reality.  Construction of NR III started in September 2002 on a 1.2 acre parcel within the larger Atherton Ranch mixed use project along Redwood Boulevard near Downtown and immediately adjacent to NR I. The land was donated by the developer of the Atherton Ranch project which fulfills the developer's obligation to comply with the City's affordable housing ordinance requirement for the Atherton Ranch mixed use project. That affordable housing obligation is formalized in an affordable housing agreement  between the City of Novato and Nova-Ro Corporation that was executed and recorded prior to building permit issuance. NR III estimated cost is $4 million and is being financed from a combination of funding sources including $250,000 in CBDG and HOME public grants, private foundation grant of $513,000 from Marin Community Foundation, equity from Nova-Ro reserves of  approximately $500,000 and up to $3.5 million tax exempt bond proceeds at below market rate interest over 30 years. Amenities include 2 story commons building with elevator, meeting rooms, kitchen, outside patio areas, laundry facilities and 22 on site parking spaces. The 40 apartments are 550 square feet one bedroom units arranged in two, two story buildings. Grand opening and occupancy  began in October 2003.

2003 AND BEYOND
With the completion and occupancy of NR III, Nova-Ro owns and manages a total of 126 apartments for needy Novato senior citizens who are 62 years of age or older, who must be able to care for themselves, who must meet both an income test and an asset test, and who have a sponsor designated to assume responsibility for them should they no longer be able to live independently.  Rents are targeted at up to 70% of market rents for comparable units and prospective tenant's income cannot exceed four times the established rent. For existing tenants, rents are adjusted annually by the percentage change in social security income. For NR III, since tax exempt bonds are being utilized to finance the project, 20% of the units must be set-aside for tenants whose incomes do not exceed 50% of the HUD published median household income for Marin County, and the corresponding rents must not exceed 30% of the 50% median household income figure. In reality,  Nova-Ro easily complies with these requirements. In fact, under the current income/rent structure, current tenants' incomes and rents are already below these thresholds.  For a single member household 50% of area median income is $39,6000 or $2,900 per month and the corresponding rent of 30% of the 50% of area median income is $990 per month.  Nova-Ro's current highest rent is $725 per month for NR III units.   Looking to the future, the Nova-Ro Board has initiated a strategic planning process to assess current policies and practices, investigate trends and needs with respect to future affordable senior housing and to evaluate options for consideration in its Strategic Plan charting Nova-Ro's future by honoring the vision of its founders in its continuing mission of providing affordable senior housing in the Novato community

Note:  This October 2003 update was written by member Sonia Seeman