Love Funding, one of the nation’s leading providers of FHA multifamily and healthcare financing, announced the closing of a $5.62 million refinancing for Edgewood Village Apartments, a project-based Section 8 apartment community in East Lansing, Michigan.
Love Funding Midwest Regional Director Bruce Gerhart secured the loans through the U.S. Department of Housing and Urban Development’s 223(f) loan program. Using the program enabled the property’s owners to lock in a low, fixed interest rate over a 35-year term, and help fund the construction of a new community building to house the property’s growing array of educational and training programs for its residents and their children.

Edgewood Village Apartments, which was built in 1973, was purchased by the current ownership group in 1994. Since taking over the property, the owners have added a two-classroom daycare center, which provides for the Head Start program, and launched an innovative program to give computers to Head Start parents who complete an onsite training course. These programs and others will now be housed in the new community building, which Love Funding helped make possible by administering the refinance as if it were a construction loan.
“Bruce took on the major responsibility of negotiating with HUD, which we really weren’t in a position to do,” said John Duley, president of Edgewood Village Nonprofit Housing Corporation, the ownership group. “He really helped us break new ground here.”
In addition to the new community center, the refinancing also provided funding for more than $1 million in energy efficiency upgrades, including the replacement of hot water heaters, furnaces, windows and roofs. Edgewood Village currently has a project-based Section 8 HAP contract, which covers 126 of the 135 total units. The contract was renewed in February 2011 and will be in place for 33 years.
For more information, contact Bruce Gerhart.