I think we are all happy to see the new year arrive! Last year was a challenging one for our industry, but I’m proud of the way our company and our clients weathered a number of headwinds. Together, we faced down the fiscal cliff, the government shutdown, a spike in rates as investors got ahead of the Fed’s tapering announcement, and then HUD ran out of commitment authority before the end of the fiscal year.
Coming into 2014, I think it’s fair to say that conditions are stabilizing across the board. We have a new Fed chairperson who is widely expected to go slow in withdrawing monetary stimulus. We’re seeing rates hold steady as the fixed-income market realizes it got ahead of itself last year. And we’re looking forward to the mid-term elections and the fresh energy a new Congress will bring.
On top of that, we’re seeing high demand for multifamily and healthcare construction. HUD is committed as ever to maintaining a strong supply of affordable multifamily and healthcare properties across the country. In fact, Multifamily Deputy Assistant Secretary Ben Metcalf recently said the agency is focused on the jobs-creating potential of the 221(d)(4) construction-financing program in particular.
Hopefully, more of those outside the industry will soon realize how meaningful these programs are not just for economic development, but for local communities as well. I’m proud of the role we play every day to help deliver those wide-reaching benefits, and you should be, too. Call us to see how we can work together in 2014.
Apartment Construction Financing
Love Funding recently closed a $15.8 million construction-to-permanent loan for InterPointe Apartment Homes, a new 160-unit market-rate apartment community under development in Billings, Montana. Utilizing HUD’s 221(d)(4) program for this project will enable the property’s developer to lock in a low interest rate during the 14-month construction period and 40-year permanent loan term.
A proposed two-phase project, InterPointe is part of the Lenhardt Square development, which was officially approved after the Billings City Council voted in August to annex the subject parcel and rezone it.
To learn more about construction-to-permanent financing through HUD (or any other available finance program), contact us today.
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