Lakeside TowersLove Funding, one of the nation’s leading providers of FHA multifamily and healthcare financing, announced the closing of two loan transactions to refinance and substantially rehabilitate affordable apartment communities in the Detroit suburbs that cater to the elderly and disabled.
The two projects, Lakeside Towers in Sterling Heights and Park Place of Harper Woods, are owned by subsidiaries of National Church Residences, a non-profit organization that has been involved in affordable housing for over 50 years and have over 24,000 units in 28 states under ownership and management. Both properties were competitively awarded 9% Low-Income Housing Tax Credits (LIHTCs) through the Michigan State Housing Development Authority.
Love Funding Midwest Regional Director Bruce Gerhart secured the loans through the U.S. Department of Housing and Urban Development’s 221(d)(4) loan program, which insures financing for the new construction or substantial rehabilitation of apartment properties. The loan proceeds and the tax credits will allow the properties to benefit from a full rehabilitation, including kitchen and bath upgrades, new carpeting, flooring, lighting, plumbing fixtures, ceiling tiles, windows, roofs, boilers, water heaters, and air conditioning units, which account for several energy efficiency improvements.

Both communities are 100% project-based Section 8 rental properties that serve the Detroit area’s elderly and disabled. Lakeside Towers was built in 1981 and contains 114 apartments for seniors. Park Place was built in 1984 and contains 131 senior units. The projects were both originally financed through HUD’s 202 loan program.
Last year, Love Funding was chosen by HUD to be among a select group of lenders approved to participate in a new housing tax credit pilot program that is testing an accelerated approval process for the purchase or refinancing of multifamily rental properties that will undergo moderate rehabilitation and re-syndicate LIHTCs. Though these transactions preceded that approval, the Detroit HUD office processed these loans to commitment within 40 days.  The program is also financing housing with 90% or more project-based rental assistance in need of moderate rehabilitation.
For more information, contact Bruce Gerhart.