Love Funding, one of the nation’s leading providers of FHA multifamily and healthcare financing, announced the closing of a $3.63 million loan refinancing for Broadmeadow Place Apartments, a 148-unit Section 8 apartment community in Covington, Tennessee.
Love Funding Senior Director William E. Jones Jr. and Director Christopher Schilling of the New York office secured the financing through the U.S. Department of Housing and Urban Development’s 223(a)(7) loan program. Using the program enabled the property’s owners to reduce the interest rate and extend the loan back to a 32-year term, generating more than $200,000 in annual debt service savings. The refinancing will also increase the property’s replacement reserve escrow by 75%.

Broadmeadow Place Apartments is one of eight properties that Jones and Schilling are refinancing for Dalcor Management, the borrower group. It was built in 1981 and 1982 with financing provided by HUD’s 221(d)(4) insurance program. The property contains 20 units that are age-restricted to tenants 62 or older.
The original mortgage was refinanced under the 223(a)(7) program in January 2003. The program allows up to 12 years to be added to the remaining term on existing HUD-insured loans, as long as it does not exceed the original term.
For more information, contact William E. Jones Jr. or Christopher Schilling.