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Regional
news: November-December 2001
Maryland
Shelter Group dedicates its newest senior community
Baltimore – The Shelter Group dedicated its newest affordable seniors
housing community here Oct. 15.
Park View at Bel Air is a four-story apartment building containing 86
one-bedroom units and 15 two-bedroom units. Each unit includes a fully
equipped kitchen, cable and television wiring, resident-controlled lobby
entrance system, and individually controlled and metered utilities.
The development also features several large common areas including a
multi-purpose room with a community kitchen, medical examination room,
beauty salon, laundry room and a large outdoor patio.
The property officially opened in July. It is 81% leased and 74% occupied.
To qualify for residency, individuals must be 62 years of age with incomes
at or below 60% of area median income.
The project was financed through a loan from SunTrust Bank; a loan and
tax credits from the state of Maryland Department of Housing and Community
Development; a payment in lieu of taxes agreement and a loan from Hartford
County; and a loan from the town of Bel Air. Equity for the project
was provided by Fannie Mae through the purchase of housing tax credits
arranged by Lend Lease Real Estate Investments.
Washington, D.C.
Green Park Financial closes financing for 392-unit community
Washington, D.C. – Green Park Financial has committed and closed
financing for the Livingston Manor apartment community here.
The 392-unit apartment community received $10.2 million in housing tax
credits to completely restore the 60-year-old structure. The original
two-story garden-style apartment complex contains six efficiency units,
190 one-bedroom, 190 two-bedroom and six three-bedroom units.
Indiana
Two properties honored for affordable housing excellence
Two multifamily properties received the annual Governor’s Awards
for Excellence in Affordable Housing.
The first winner, the Davlan in Indianapolis, was built as a hotel in
1915 and was converted to Sec. 8 housing in 1972. It was vacant for
two years until it was renovated last year into 50 mixed-income one-
and two-bedroom units.
The renovation was a cooperative effort among the Riley Area Development
Corp., Monument Realty and Roberts Park United Methodist Church. Financing
for the Davlan came from low-income housing tax credits, a HOME grant,
loans from the Indianapolis Neighborhood Housing Partnership, Local
Initiatives Support Corp., First Indiana Bank, the Federal Home Loan
Bank’s Affordable Housing Program and the National City Bank of
Indiana.
The other, Dunedin Apartments in South Bend, consists of 168 new units
that are barrier free. Phase I began in 1995 and Phase II in 1997. The
development is now home to more than 240 residents, all of whom have
special needs and earn at or less than 60% of the area median income.
The development partners were the St. Joseph Housing Assistance Office,
St. Vincent DePaul Society, Martin’s Supermarkets, Logan Center,
Anthony Wayne Services, Dungarvin of Indiana, and Madison Center and
Hospital. Dunedin was funded with tax credits, a Community Development
Block Grant from the city, a Fannie Mae mortgage and a conventional
loan.
Housing Finance Authority awards grants and loans
The Indiana Housing Finance Authority awarded $1.8 million in grants
and loans in September:
• Nine Community Housing Development Organization awards totaling
$269,500;
• Nine HOME and Community Development Block Grants totaling $232,250;
and
• Four Housing from Shelters to Homeownership awards totaling $1.3
million in HOME funds.
Massachusetts
Vacant development to be demolished and redeveloped
Roxbury – A vacant 315-unit apartment development here will be
redeveloped as Academy Homes II, the latest MassHousing/HUD Demonstration
Disposition project to be redeveloped.
The $45 million demolition began Sept. 28. When complete, the new Academy
Homes II will consist of new wood-frame townhouses with 236 units. The
development will be 100% affordable. Community amenities will include
a community room, on-site parking, play areas and fenced yards.
The Demonstration Disposition program was designed to help HUD deal
with its growing inventory of foreclosed properties. The MassHousing/HUD
Demonstration Disposition program is the only program of its kind in
the country, organizers said.
There are 11 federally subsidized rental housing developments, totaling
1,850 units, that are being redeveloped through the program. Upon completion
of construction, resident-controlled organizations become the owners
of the development.
In other news, MassHousing is completing design and construction work
on Roxse Homes, a more than $49 million public-assisted housing development
located in Boston’s South End/Lower Roxbury neighborhood. It is
the largest of 11 developments being rehabilitated through the Demonstration
Disposition Program in terms of the number of units.
Working with MassHousing, ICON architecture, inc., in joint venture
with Hezekiah, Pratt and Associates, is responsible for the architectural
services for the redevelopment of Roxse Homes. The development will
be downsized from 364 to 346 units and will include 12,000 square feet
of commercial space renovations. Three of the low-rise buildings are
being converted into two- and three-story townhouses.
New Jersey
Funds made available for lower-income adoptive parents
New Jersey – The New Jersey Housing and Mortgage Finance Agency
(HMFA) has made an additional $3 million in mortgages available to lower-income
adoptive parents through its Home Ownership for Permanency Project.
The project is a partnership between the state Department of Human Services,
Division of Youth and Family Services (DYFS), and HMFA. Since its inception
in July 1999, the program has helped 35 families provide permanent homes
for approximately 79 adopted children.
The Home Ownership for Permanency Project makes 30-year mortgages with
below-market interest rates available, with 100% financing if needed,
to low- and moderate-income adoptive parents and relative care givers
faced with inadequate or unaffordable housing. Financing for home improvement,
rehabilitation and refinancing to enhance or enlarge a current home
to accommodate new family additions is also available. The project was
selected as one of the U.S. Department of Housing and Urban Development’s
Top 100 Best Practices for 2000.
CPC creates equity investment fund for N.J., N.Y. properties
The Community Preservation Corp. (CPC) has created a $42.5 million equity
investment fund to acquire and develop distressed properties in New
Jersey and New York. It is managed by its subsidiary, CPC Resources,
Inc. (CPCR).
The Opportunity Fund will focus on distressed residential urban properties
in which CPC’s mortgage lending expertise is strong. These include
multifamily occupied or vacant, rental, or for-sale properties. Such
properties most often require major rehabilitation. Mixed-use properties
with retail or office space are also eligible. CPCR is also currently
developing an economical model to create infill properties. It has closed
three deals since fall.
The fund is expected to invest in 10 to 15 distressed and/or defaulted
properties, or 1,000 to 1,500 units, over three years. It is structured
as a limited liability corporation.
In other news, CPCR has established a consulting service to help nonprofits
finance, rehabilitate and build affordable housing here with realty
development.
As a nonprofit’s representative, CPCR can acquire project financing,
negotiate construction prices on behalf of the client with a contractor
and assemble development teams. As a consultant, it can perform feasibility
analyses such as construction cost estimates, potential rent estimates,
identification of financing sources, including possible subsidies, and
assistance with the preparation of subsidy applications. Fees for these
services will be determined according to the scope of the work desired
by the client.
New York
Legg Mason arranges first mortgage loan for project
Astoria – Legg Mason Real Estate Services (LMRES) arranged an $18
million first mortgage loan for the 444-unit Marine Terrace, a Sec.
8 HAP project here.
The financing was based on a 10-year term with a 25-year amortization
schedule. Financing was arranged for the borrower, Marine Holding, LLC,
by LMRES through Freddie Mac.
Missouri
VOA Growth Corp. purchases three apartment communities
St. Louis County – Coldwell Banker Commercial American Spectrum
and The Berkshire Co. teamed up for the sale of three apartment communities
here to VOA Growth Corp., the housing division of Volunteers of America.
The VOA financed the purchase of the 513-unit portfolio with tax-exempt
bonds. The properties include the 201-unit Brighton Apartments, the
128-unit Hathaway Village Apartments and the 184-unit Oakmont Townhomes.
Florida
Affordable housing complex for seniors opens in Kissimmee
Kissimmee – The Whistler’s Park Apartments, a 160-unit affordable
housing complex for low-income seniors, opened here.
Partners in the development include Florida Community Partners, Inc.
(FCP), State Housing and Development, Osceola County, Alliant Capital,
Leland Management Group and Fannie Mae.
The development, which is on 13 acres, consists of one-, two- and three-bedroom
units in 20 two-story buildings. Community amenities include a clubhouse
and swimming pool, exercise room, picnic and grill area, and shuffleboard
court.
The total cost of the development was $12.3 million. The project received
$5.5 million in equity from the sale of housing tax credits, a $4.6
million construction loan from the FCP, a $1.5 million loan from the
state of Florida and a $500,000 grant from Osceola County.
Fannie Mae’s Community Development Financial Institutions Initiative
committed $6.1 million in investments to FCP to support the development
of Whistler’s Park and other affordable developments.
Puerto Rico
Firms partner to construct affordable housing
Salinas – Boca Raton-based Eagle Building Technologies is partnering
with Salinas Developers Group to construct a large-scale affordable
housing development here, Estancias de Evelymar.
Phase I of the development began Oct. 9, which comprised 5,000 homes
ranging between 900 and 1,000 square feet.
California
Housing projects target homeless in L.A.
Los Angeles – Two housing projects targeting the homeless were
developed here recently.
A Community of Friends (ACOF), an affordable housing nonprofit, has
rehabilitated Fox Normandie Apartments for the homeless. The six-story
building, constructed in 1929, now has 37 efficiency and 11 one-bedroom
apartments.
The interior has been reconfigured for housing, a community room, a
conference room and a laundry room. It also has two management offices
with two full-time resident services coordinators. Residents will pay
30% of their income toward rent.
The project cost $5 million. The majority of the funding came from the
Enterprise Social Investment Corp., which purchased the federal low-income
housing tax credits. The Federal Home Loan Bank of San Francisco provided
a $250,000 Affordable Housing Program (AHP) grant. Cal Fed funded an
additional $184,000. Bank of America provided $2.7
million in construction financing and, through the L.A. Homeless Services
Agency (LAHSA), provided nearly $1 million in capital.
ACOF has developed more than a dozen projects since its inception.
Also, the SRO Housing Corp., an affordable housing nonprofit, has created
a new residential hotel called the Southern Hotel here. The development
serves homeless veterans in the area. It was financed by a $403,000,
10-year fixed rate loan from the Citigroup Center for Community Development
Enterprise and an AHP grant totaling nearly $300,000. The LAHSA provided
an acquisition/permanent loan and the Housing Authority of the City
of Los Angeles provided a construction/permanent loan.
New City Walk an example of a location-efficient neighborhood
Hayward – City Walk is a new 77-unit “transit-oriented”
housing development here.
Located minutes from the Bay Area Rapid Transit (BART) station in Hayward,
the development is an example of “location-efficient neighborhoods”
that are centrally located with quick accessibility to public transportation,
retail and commercial services. The model homes for the project opened
in October.
To increase affordability and promote the use of public transportation
for families interested in purchasing one of the townhomes, Fannie Mae
is offering a Location Efficient Mortgage (LEM). Available through participating
lenders, the LEM allows a portion of the homebuyer’s potential
savings from using public transportation to be considered as additional
income in qualifying for a mortgage. The LEM has no income limits and
offers more flexibility than standard mortgage financing, including
low downpayment requirements. City Walk will consist of two-, three-
or four-bedroom townhomes priced from the mid-$300,000s.
The development is being built and sold by The Olson Co. Fannie Mae
invested $2.6 million in the project through the company’s American
Communities Fund, an equity and debt fund that provides capital to facilitate
creative solutions to developments that support and advance local revitalization.
New Mexico
Simpson Housing opens 96-unit apartment community
Albuquerque – Simpson Housing Solutions has opened the Aspen Ridge
Apartments here. The property will be managed by Simpson Property Group,
a division of Simpson Housing Solutions.
The 96-unit apartment community features units with two-, three- and
four-bedroom layouts with two full baths. Unit amenities include designer
kitchens, private patios or balconies, walk-in closets, washer and dryer
hook-ups, and central heating and air conditioning.
Community amenities include a swimming pool, spa, tot lot, a clubhouse
with game room, computer learning center, barbecue areas and controlled-access
gates.
The development received housing tax credits. Monthly rents for the
affordable units will range from $520 to $664. Rents for the market-rate
units will range from $615 to $815 per month.
Oregon
Housing and Community Services financing 298 units
Oregon Housing and Community Services (OHCS) will provide more than
$20 million to finance 298 units of affordable housing in Gresham and
Troutdale.
In Gresham, the Chestnut Lane Assisted Living Facility received an elderly
and disabled loan in the amount of $5.52 million. The to-be-built assisted
living facility will be the first of its kind in the Pacific Northwest
to target housing and services for the elderly deaf and blind.
In Troutdale, OHCS awarded $14.53 million in risk-sharing funds for
the construction of the Troutdale Terrace Apartments. The 228-unit garden-style
apartment community sits on a 14-acre site. The development will receive
$608,362 annually in 4% housing tax credits for a 10-year period. Moderate-income
residents earning between $11,027 to $33,509 annually will be eligible
to live in the development.
Washington
FHLBank of Seattle and state to promote developments
The Federal Home Loan Bank of Seattle and the Washington State Housing
Finance Commission (WSHFC) have introduced a service that promotes opportunities
to preserve projects with expiring tax credits, Sec. 8 contracts or
other low-income use restrictions.
The role of the agencies will be to disseminate information on the properties.
As conduits of information, the agencies aim to promote developments
that are at risk of losing subsidy and to maintain the stock of affordable
housing.
Housing authority acquires Southwood Square Apartments
Kent – The King County Housing Authority (KCHA) purchased the Southwood
Square Apartments here as part of an ongoing strategy to preserve and
upgrade affordable housing in the county.
The 104-unit development is one of the largest Sec. 8 assisted living
communities in King County. The property will be renovated by the KCHA,
which plans to spend approximately $2 million in improvements.
Funding sources for the purchase of the property include $575,000 from
the KCHA program; $380,000 from the state Housing Trust Fund; $10,000
from the city of Kent; $2.6 million in tax credit equity; and $5 million
in mortgage revenue bonds.
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