Love Funding closed a $7 million loan for the refinance and rehabilitation of Central Towers Apartments, an affordable senior community in southwest Detroit, Michigan. Central Towers consists of 232 one-bedroom and two-bedroom apartments in two high-rise buildings. All but two of the units are currently covered by a Section 8 housing assistance payment (HAP) to help subsidize rents, and the borrower renewed their Section 8 contract as part of the transaction. The two remaining units are low-income housing tax credits (LIHTC) restricted at 60 percent AMI. (more…)
Financing for affordable housing communities can get tricky. It oftentimes requires a combination of debt and equity sources and a complex analysis of available financing tools. Love Funding has done it all. Our team has extensive experience underwriting HUD-insured loans involving tax-exempt bonds, low-income housing tax credits (LIHTCs), historic tax credits, new market tax credits, Section 8 rental contracts and various government programs for subordinated loans or grants. Here our experts answer some of the most common affordable housing finance questions:
Love Funding closed two loans totaling $16.4 million to build a new multifamily housing community for low-income residents in Ecorse, Michigan. Renaissance Estates of Ecorse is being built in two concurrent phases on the land that previously held the Wade H. McCree Plaza and Voisine Terraces Apartments. The project will replace the current units built between 1952 and 1962 with 200 affordable housing units spread across 16 new residential buildings. (more…)
Love Funding closed a $9.9 million loan to purchase and significantly rehabilitate Newman Court Apartments, an affordable community in Pontiac, Michigan.
Newman Court Apartments offers 172 one-, two- and three-bedroom units. The apartments are located in 19 one- and two-story buildings originally constructed in 1971 and 1972. The property will undergo significant renovations through the use of 4 percent low-income housing tax credits (LIHTCs) allocated by the Michigan State Housing Development Authority. All of the apartments will continue to be tax-credit-restricted under a new 20-year Section 8 HAP contract.
The financing was secured by Love Funding’s Cleveland office through the U.S. Department of Housing and Urban Development’s 223(f) loan insurance program. The HUD program provided the development team with low-rate, non-recourse financing for a 35-year term. The City of Pontiac approved the property for payment in lieu of taxes (PILOT), which will set annual property taxes at 7 percent for the full length of the mortgage term. (more…)
A Demo for partnership: HUD’s RAD program taps private dollars to preserve affordable public housing
By Mark Dellonte, Opinion Contributor — Published 10/27/17 10:15 AM EDT on The Hill
In many public housing communities around the country, conditions are quickly becoming unlivable. Collectively, public housing authorities (PHAs) face a backlog of $26 billion in deferred maintenance and it’s growing by the day because the properties continue to age and the PHAs have fewer resources than ever before to maintain them. The problem is made all the more pressing by the fact that roughly nine out of every 10 households that live in public housing include minor, elderly or disabled family members. (more…)
Love Funding closed an $6.66 million loan for the refinancing and repair of Greenhouse Apartments, an affordable senior living community in Detroit. Greenhouse Apartments offers 208 age-restricted, one-bedroom units and one two-bedroom manager’s unit in a 10-story building. All of the age-restricted units are covered under a Section 8 HAP contract, and all 209 units are restricted under the Low Income Housing Tax Credit (LIHTC) program.
The financing was secured by Love Funding Midwest Regional Director Bruce Gerhart through the U.S. Department of Housing and Urban Development’s 223(a)(7) loan insurance program. This program allows for the refinancing of properties currently insured by FHA, as well as an extension of up to 12 years beyond the original mortgage term.
The property was built in 1981 and was substantially renovated in 2008 with financing provided by the HUD 221(d)(4) program in conjunction with an award of low-income housing tax credits (LIHTCs). The current refinancing, which locks in a lower interest rate for a 40-year term, will generate significant debt service savings and fund necessary repairs.
Greenhouse Apartments will remain under the management of KMG Prestige, a firm approved to manage HUD-affiliated communities. The ownership group of KMG has a combined 50 years of experience in the property management industry.
For more information, contact Bruce Gerhart at (216) 583-0812.
Love Funding closed a $6.49 million loan for the refinance and rehabilitation of Orlando Cloisters, an age-restricted affordable community in Orlando, Florida. Orlando Cloisters is an 11-story building offering Section 8 efficiency and one-bedroom units to residents 62 years and older. The 101-unit community is located in a mixed-use neighborhood south of downtown Orlando. (more…)
Love Funding recently closed five loans totaling $97 million for five multifamily communities in the Midwest. Love Funding Midwest Regional Director Bruce Gerhart secured the loans through the U.S. Department of Housing and Urban Development’s multifamily loan insurance programs. The programs provide non-recourse, low-rate, long-term financing for the construction, substantial rehabilitation or refinancing of affordable or market-rate apartment projects across the United States. (more…)