Regional News
By Eric Wong
Michigan
Lockwood gets bond funding
Fenton – The Michigan State Housing Development Authority (MSHDA) provided a 35-year, $9.8 million tax-exempt bond at 5.5% to the Lockwood Group for a new seniors housing development. The project, Lockwood of Fenton, also received a $1.3 million HOME loan from Genesee County.
Lockwood will consist of 34 one-bedroom and 71 two-bedroom apartments. Forty-four of the units will target tenants earning no more than 60% of the area median income (AMI).
MSHDA also provided a 35-year, $3.1 million tax-exempt bond at 4.5% for the 49-unit Maple Village II in Bear Creek Township. It will consist of 39 two-bedroom and 10 three-bedroom units for low- and moderate-income families.
Massachusetts
State awards $2.3 million to affordable housing
The cities of Middleboro, Chelsea, Eastham and North Brookfield were awarded a total of $2.3 million to transform dilapidated, underutilized and vacant properties into rental housing for low- and moderate-income families.
“We want to preserve the New England village model where housing is close to retail, recreational activities and other services,” said Lt. Gov. Kerry Healey.
The Department of Housing and Community Development will administer the federal funds through its Housing Development Support Program (HDSP). HDSP is a component of the Massachusetts Community Development Block Grant program.
Generally, cities and towns with populations under 50,000 are eligible to apply for HDSP funds.
New Hampshire
NHHFA reserves tax credits for 163 units
Bedford – The New Hampshire Housing Finance Authority (NHHFA) reserved $2.1 million in LIHTCs for five developments that will add 187 new affordable rental units to the state.
The five projects are:
- The 53-unit Encore Mill sponsored by the Rochester Housing Authority, an adaptive reuse of the Encore Mill Building in Rochester;
- The 33-unit Stone Arch Senior Housing sponsored by the Keene Housing Authority, the seniors housing phase of a larger development project in Keene;
- A 57-unit seniors housing project by CCW Management Corp. of Concord, located in New Market;
- The 20-unit Warwick Meadow sponsored by Southwestern Community Services, in Winchester; and
- The 24-unit Ossipee Place sponsored by the Keene Housing Authority, in Keene.
New York
Silver Street expands into New York
New York – Silver Street Development Corp. has expanded into the real estate market here by acquiring two affordable housing properties north of Central Park: the 183-unit Dunwell Plaza and the 135-unit Los Tres Unidos.
The $20 million acquisition of both properties was financed by Arbor Commercial Mortgage. The firm paired a short-term, floating-rate mortgage secured by the properties and a short-term, fixed-rate mezzanine loan secured by the borrower’s interests in each property.
Silver Street will operate the properties under the Department of Housing and Urban Development’s (HUD) Mark-to-Market program. The properties will remain as Sec. 8 housing, but Silver Street will be able to collect market rents for each unit.
NYC proposes housing trust fund
New York City – In April, Mayor Michael Bloomberg and the city comptroller, William C. Thompson Jr., proposed the creation of a trust fund for affordable housing.
The trust fund would receive $130 million in surplus funds from the Battery Park City Authority over the next four years. In the first year, $46 million would come into the fund.
Officials say that the trust fund will help them make good on an old broken promise. In 1989, the city pledged to spend $600 million from the Authority on affordable housing, but the money was instead used to fill holes in the city’s budget.
The proposal still needs to be approved by Gov. George E. Pataki, who controls the Authority.
Texas
GMAC, Southwest close on TEB deals
The Newman Capital division of GMAC Commercial Housing Capital Corp. and Newman & Associates, a division of GMAC Commercial Holding Capital Markets Corp., closed on three tax-exempt bond (TEB) deals here with Southwest Housing Development Co., Inc.
They include:
- $14.4 million for the 232-unit Cherrycrest Villas Apartments in Dallas, co-developed by the Dallas Housing Finance Corp.;
- $14.3 million for the 250-unit Rosemont at Garth Apartments in Baytown, co-developed by the Southeast Texas Housing Finance Corp.; and
- $13.8 million for the 204-unit Primrose at Crist Apartments in Garland, co-developed by the Garland Housing Finance Corp.
Florida
Pinnacle funded by expanded Freddie delegation
Haines City – Pinnacle Housing is building the 156-unit Pinnacle Pines Apartments here. It received a financing package that includes a $5 million construction loan with a forward commitment and forward rate lock for a $4 million permanent loan from GMAC Commercial Mortgage Affordable Housing Division (AHD).
The forward commitment was closed under the new Freddie Mac delegated underwriting initiative. The construction loan and permanent rate lock were closed within 30 days of application.
It was Pinnacle’s third transaction with GMAC Commercial Mortgage, two of which were with AHD.
Virginia
Southside builds 100 seniors housing units
Richmond – Southside Community Development and Housing Corp., is building a three-story, 100-unit affordable seniors housing development in Sandston, a suburb near here.
RED Capital Group provided $10 million in debt and equity to the five-acre Sandston Plateau Senior Retirement Community. Its affiliate, Provident Community Development Co., LLC, provided a $750,000 predevelopment loan and a $5.4 million construction loan. Red Capital Markets, Inc., syndicated $4.1 million in federal LIHTCs. Additional funding included a $500,000 Virginia Housing Development Authority grant.
All of Sandston Plateau’s units will be reserved for seniors earning at or below 50% of AMI. Amenities include a laundry facility on each floor, dedicated transportation, a fitness center, a library and a chapel.
Caru gets rehabbed
Roanoke – RST Development, LLC, has borrowed $5.3 million from AGM Financial Services for the acquisition and renovation of the 244-unit Caru Apartments.
The Sec. 221(d)(4) loan was underwritten by the Federal Housing Administration’s Multifamily Accelerated Processing program. The project was also financed with LIHTCs.
Rehabilitation will average $18,000 per unit, according to AGM.
California
Simpson Housing opens Tuolumne Village
Parlier – Although Simpson Housing Solutions, LLC, held the grand opening for Tuolumne Village Apartments on May 12, 95% of the units were already leased by that time.
The $11.2 million project features 81 three- and four-bedroom units, each with two bathrooms. Residents’ incomes cannot exceed 30% to 60% of the Fresno County area median income.
“Tuolumne Village was developed to meet the critical and growing need for affordable housing for Parlier’s growing population of large families with children,” said Michael Costa, president of Simpson Housing.
Idaho
Park Ridge to break ground
Post Falls – Pacific Communities of Idaho, LLC, and Roope, LLC, are receiving $4.5 million in LIHTCs for the development of the 54-unit Park Ridge Apartments here. All but one of the units will be targeted to low- and moderate-income renters.
The Idaho Housing and Finance Association provided construction and permanent financing. The Wells Fargo Bank Foundation provided a $2,500 grant to help develop a computer center at the project.
Montana
MBOH to allocate $2.1 million in LIHTCs
The Montana Board of Housing (MBOH) has reserved $2.1 million in LIHTCs for six affordable housing projects.
The credits are expected to generate more than $16 million in direct investments for communities in the state, said Anthony Preite, director of the Montana Department of Commerce. “Construction alone will bring an additional $25 million to the state economy from these projects.”
The tax credits will be used to produce 221 affordable housing units, according to the MBOH.
New Mexico
New Mexico credit approved
New Mexico – Affordable housing developers here will soon have a state housing tax credit program in their toolbox.
Democratic Gov. Bill Richardson has signed bills creating a state housing tax credit and a housing trust fund in New Mexico.
Officials are now working to educate the housing industry and finalize regulations for the tax credit program. The earliest that the state credits can be issued is 2006. In the first year, $200,000 in credits is expected to be available.
In general, a nonprofit would propose an affordable housing program to the New Mexico Mortgage Finance Authority (MFA) and request that it be eligible for state credits. If the project was approved, MFA would allocate the credits, and the nonprofit would secure donations that would serve as equity in the project. Individuals, businesses and local governments could donate cash, land, buildings or services to projects for tax credits, which could be redeemed within five years from the year of donation. The credits could be sold or transferred once, in whole or in part, during their five-year redeemable life.
The trust fund aims to create a source of new revenue to finance affordable housing activities across the state. The state has budgeted $10 million to capitalize the program.
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