News from the states: July-August 2001

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CALIFORNIA

Low-interest loans awarded to local agencies statewide

Sacramento--The California Housing Finance Agency (CHFA) has awarded $10 million in low-interest loans to 10 local agencies statewide.
These funds, from CHFA’s Housing Assistance Trust, will be used to finance affordable single- and multifamily housing projects. The approved loans range from $300,000 to $1.7 million, and they are expected to result in more than 1,400 housing units.

San Mateo County will use its $500,000 to establish a revolving land acquisition loan fund that will enable nonprofits to purchase land for the development of rental housing units for low-income households.

Other recipients are the cities of Bakersfield, East Palo Alto, Santa Cruz and Signal Hill; the housing authorities of Kern and San Diego counties; the Redevelopment Agency of the City and County of San Francisco; and the redevelopment agencies of Westminster and Woodland.

Avondale II, LP, receives loan from Arbor Commercial

Sacramento--Arbor Commercial Mortgage, LLC, has loaned $5.8 million to Avondale II, LP, to help acquire Avondale 2, a 140-unit complex here. The Fannie Mae 10-year, 30-year amortizing loan has a 7.06% interest rate.

Capri arranges financing for Vista Del Oro apartments

Oceanside--Capri Capital arranged $13.325 million in financing for the Vista Del Oro apartments here. The affordable housing garden complex consists of 10 two-story buildings, and offers 112 one-bedroom, 132 two-bedroom and 20 three-bedroom units. Community amenities include outdoor swimming pool, two spas, three tennis courts and a volleyball court.

The 30-year loan carries an interest rate of 5.3% with a 30-year amortization schedule and a loan-to-value ratio of 73%. The loan was funded through Fannie Mae’s Fixed Rate Bond Credit Enhancement Program.

MASSACHUSETTS

Affordable housing group acquires condo complex

Orleans--The Orleans Joint Committee on Affordable Housing has acquired the Windmill Village Condominium complex thanks to funds from The Life Initiative. The acquisition ensures that the apartments remain available as affordable housing.

The four affordable housing rental apartments were financed by a $185,000 loan from The Life Initiative and $32,484 from the Orleans Affordable Housing Trust.

MINNESOTA

Minneapolis group to receive investment from U.S. Bancorp

The Greater Minneapolis Metropolitan Housing Corp. (GMMHC) will receive a $500,000 investment from U.S. Bancorp.

The investment will provide up-front funds for predevelopment costs to nonprofit affordable housing developers in the Minneapolis-St. Paul area.

GMMHC is a nonprofit organization that develops affordable housing for people with low to moderate incomes by providing financial and technical assistance to neighborhoods and nonprofit housing corps.

MISSISSIPPI

Mississippi Home Corp. awards $4.9 million in tax credits

The Mississippi Home Corp. has awarded more than $4.9 million in housing tax credits in the second funding round. The funds will generate a total of 560 affordable rental units in underserved rural areas of the state.

NEW YORK

Bronx walk-up receives permanent financing

New York City--The Community Preservation Corp. has provided $218,000 in permanent financing for 1049 Hoe Ave. in the Longwood section of the Bronx.

The three-story walk-up consists of four one-bedroom apartments and two two-bedroom apartments.

A portion of the 30-year loan will be financed at 8.22%, while $50,000 of the loan will be financed at 0% through a loan program sponsored by the U.S. Treasury. Residential Mortgage Insurance Corp. insured the loan.

East Syracuse seniors complex receives bonds

Syracuse--Red Capital Markets, Inc., has provided $2.7 million in tax-exempt series A bonds and $265,000 in Taxable Series B bonds for Bennett Manor in East Syracuse.

Bennett Manor is a seniors housing complex that offers 108 one-bedroom units in a single four-story building.

At least 30% of the project’s units are leased to very low-income tenants earning 50% or less of the area median income (AMI).

By refunding the bonds, Red Capital will reduce the project’s mortgage rate from 7.5% to 6.625% when the HAP Contract expires in May 2010.

In addition, the financing also generated approximately $500 per unit that will go toward safety improvements.

OHIO

Charter One makes pledge for neighborhood revitalization

Cleveland--Charter One Financial, Inc., has pledged to reinvest $170 million to Cleveland’s Neighborhood Reinvestment Program. The funds will go toward residential mortgages, home improvements and consumer lending in the city.

The city of Cleveland also will benefit from a $100,000 grant from KeyCorp. The grant to the Enterprise Foundation will help finance neighborhood revitalization and affordable housing production.

TEXAS

Legislative changes to go into effect in September

The legislative changes to the housing tax credit program that were passed into law at the end of May will be set into effect Sept. 1.

The $300 million a year housing tax credit program was reformed, and clear guidelines and disclosure requirements were established. Additional public hearing requirements were added for the tax credit program, the Housing Trust Fund, HOME, and the single- and multifamily MRB programs.

The Texas Department of Housing and Community Affairs (TDHCA) will be required to create a uniform application and funding cycle for housing programs that support projects that meet an established need, which will facilitate regional objectives.

(For more information, visit the TDHCA Web site at www.tdhca.state.tx.us.)

Bardin Greene Apartments construction starts

Arlington--Construction started on the Bardin Greene Apartments here June 7. The community, which is being developed by Dallas developer Guy E. Brignon, was pre-sold to Los Angeles-based Residential Realty Group I.

When the project is completed in June 2002, the gated community will bring 285 units that will mostly cater to low- and moderate-income residents. Units will be available in one-, two- and three-bedroom floorplans. Apartment sizes will range from 605 to 1,295 square feet, with monthly rents ranging from $570 to $1,070.

Community amenities will include a clubhouse with billiards, fitness and business centers, swimming pool and outdoor picnic areas. Units will be equipped with high-speed Internet access and hardwood floors.

Total development costs for the project were $18.65 million. The project was financed with $17.7 million in tax-exempt bonds issued by the Tarrant County Housing Finance Corp. The bonds were syndicated by Houston-based Hough & Co., and Malone Mortgage in Dallas is the mortgage banker.