A Faith-Based Financial Model for Affordable Senior Housing: The Sanctuary at Winchester Pike
Introduction
Affordable senior housing remains one of the most pressing challenges in American communities, and a groundbreaking Georgetown University graduate thesis offers a compelling blueprint for addressing it. Titled A Faith-Based Financial Model for Affordable Senior Housing: The Sanctuary at Winchester Pike, the 16,764-word capstone by Justine Chang (MPRE Candidate, Summer 2025) details a 97-unit development in Columbus, Ohio, that leverages church-owned land, layered public financing, and a replicable ground lease structure to serve seniors aged 55 and older. This article summarizes the document's key findings, methodology, and policy implications for researchers, students, and housing professionals seeking to advance housing solutions.
The Dual Crisis Driving Innovation in Affordable Senior Housing
The thesis identifies two intersecting crises that motivate the project. First, the national affordable housing crisis continues to widen, with demand for income-restricted units far outpacing supply in markets like Columbus, Ohio. Second, many faith-based institutions face declining attendance and shrinking revenue, leaving them with underutilized land assets and uncertain financial futures.
By combining these challenges into a single development strategy, the Sanctuary at Winchester Pike proposes that churches can address the need for affordable senior housing while generating sustainable income—without assuming development risk or financing responsibilities.
The project is situated at 4760 Winchester Pike, on land owned by Asbury United Methodist Church South. Rather than selling the property, the church enters into the Sanctuary 20/20 Ground Lease, a model designed to retain land ownership while unlocking immediate and long-term revenue through a structured lease agreement with the development team.
The Sanctuary 20/20 Ground Lease and Capital Stack
At the heart of the proposal is a $25.2 million capital stack that layers multiple funding sources to make this affordable senior housing project financially viable. The financing structure includes:
- HUD 221(d)(4) Financing: Construction-to-permanent debt that provides long-term, fixed-rate mortgage financing insured by the U.S. Department of Housing and Urban Development.
- 4% Low-Income Housing Tax Credits (LIHTC): Federal tax credit equity that attracts private investment in exchange for tax benefits, requiring the project to maintain income and rent restrictions for a minimum compliance period.
- Qualified Census Tract (QCT) Basis Boost: The project site falls within a QCT, which allows a 30% increase in the eligible basis for calculating tax credits, significantly enhancing the equity raised for affordable senior housing.
- Gap Financing: Approximately $1.27 million in soft, low-interest loans from the Ohio Housing Finance Agency (OHFA) and local programs, enabling deeper affordability without threatening operational viability.
This integrated approach leverages public funds alongside private capital, ensuring lasting affordability while minimizing taxpayer risk. The ground lease terms, detailed in Table 5 of the thesis, specify how lease payments flow back to the church over the project's lifecycle, creating a predictable income stream that supports the congregation's long-term stewardship goals.
Market Demand for Affordable Senior Housing in Columbus
The thesis includes a rigorous market research section examining demographics, growth metrics, and the supply-demand balance for affordable senior housing in the Columbus area. Key findings include:
- High occupancy rates: Independent living occupancy gains are outpacing assisted living, with stabilized occupancy reaching 93.8% according to CoStar (2025).
- Limited new development: While some projects exist in the pipeline, additional units across Area Median Income (AMI) tiers are necessary to fully serve the target demographic.
- Growing demand: Population aging trends in Ohio, documented by the Ohio Department of Aging, confirm increasing need for income-restricted units.
Affordability Gap Analysis
Using Novogradac's 60% AMI income and rent limits for the 4760 Winchester Pike location, the thesis demonstrates a significant affordability gap. Market rents in the area exceed what seniors earning at or below 60% AMI can reasonably afford, reinforcing the necessity of subsidized affordable senior housing in this submarket. The analysis also addresses scenarios where 60% AMI rents exceed market rent less 10%, a critical consideration for LIHTC compliance and project feasibility.
Design, Amenities, and Community Integration
The 97-unit affordable senior housing development features a mix of one-bedroom (609 square feet) and two-bedroom (880 square feet) floor plans, designed to meet Ohio Housing Finance Agency design and architectural standards. Common areas include a multipurpose lounge and café space, and the project emphasizes accessibility and proximity to essential services.
The thesis documents the site's access to transportation options, healthcare facilities, retail, and other amenities within walking, driving, and transit distances. A zoning analysis confirms that the project requires either a special exemption or Conditional Use Permit (CUP) for senior housing under existing local zoning regulations and outlines the process for obtaining the necessary approvals.
A Scalable and Replicable Model
One of the thesis's most significant contributions is its emphasis on replicability. The Sanctuary 20/20 Ground Lease model is designed to be adapted by other faith-based institutions across the country that hold underutilized land and seek to balance mission-driven impact with financial sustainability.
By demonstrating that a layered capital stack—combining HUD debt, LIHTC equity, QCT basis boosts, and soft gap financing—can fully fund a $25.2 million affordable senior housing project, the thesis provides a practical framework for stakeholders nationwide who are working to expand housing access in their own communities.
Conclusion
The Sanctuary at Winchester Pike thesis offers a thoroughly researched, financially detailed, and socially impactful model for expanding affordable senior housing through faith-based partnerships. Its value extends beyond Columbus, Ohio, serving as a reference point for housing professionals, policymakers, and religious institutions exploring how underutilized land can be transformed into community-serving assets.
As both the housing affordability crisis and the financial pressures on faith-based organizations persist, documents like this one provide an essential, evidence-based roadmap for sustainable, mission-aligned development that prioritizes affordable senior housing as a cornerstone of community well-being.