Love Funding, one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, announced the closing of a $5.3 million loan to substantially rehabilitate a 96-unit apartment community in Deerfield Beach, Florida, and preserve its affordable status through a unique FHA program.
Stanley Terrace was built in 1969 as a traditional public housing development, but in 2014, the Deerfield Beach Housing Authority applied for and received acceptance to the U.S. Department of Housing and Urban Development’s Rental Assistance Demonstration (RAD) program.
The RAD program was created by HUD in 2014 to convert public housing units to long-term Section 8 contracts, allowing the units to remain affordable to low-income households. Rather than having to apply annually for operation and management subsidies through the federal public housing budget, the Deerfield Beach Housing Authority was able to convert those funds into Section 8 rental subsidies. This allows them to offer market rents, since the rental assistance makes the units affordable. Consequently, the Authority can operate and renovate the property with debt that is supported by net income, like any other property owner.
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