Affordable Housing Finance

Regional News

AFFORDABLE HOUSING FINANCE • February 2009

MIDWEST

Dominium Completes $4.5 Million Rehab

SIOUX CITY, IOWA - Dominium Development & Acquisition has finished its $4.5 million renovation of Hillside Park Apartments here. The renovation, which included new roofs, windows, doors, air-conditioning units, cabinetry, carpets, and appliances, cost approximately $40,000 per unit. Dominium also constructed a 2,000-square-foot community center on the property with a kitchen and a computer lab, as well as a new tot lot and a playground.

The Iowa Finance Authority, the Iowa Department of Economic Development, and the city contributed financing to the project. The property was 100 percent occupied at the end of the renovations.

First LEAN Sec. 232 Acquisition Loan Closed

CLEVELAND - The Villa at the Lake, a 90-unit assisted-living facility in Conneaut, Ohio, was acquired by Randall Residence in mid-December. Love Funding provided a $6.5 million loan—the first acquisition loan under the new Department of Housing and Urban Development’s (HUD) LEAN program. The loan includes a 6.4 percent fixed interest rate and a 35-year term. LEAN, which was rolled out near the end of 2008, streamlines the processing of Sec. 232 loans, with loans closing 30 to 60 days after an application is submitted. Randall plans to spend about $250,000 in renovations.

NORTHEAST

NYC Completes 82,688 Units

NEW YORK - The city has finished 82,688 units of affordable housing—reaching the halfway point in its 10-year Housing Marketplace plan to create or preserve 165,000 affordable housing units.

The plan, first announced in 2003, was expanded in 2005 and is expected to be complete by 2013. The city is more than halfway to its goal of preserving 73,000 existing affordable units and only a quarter of the way toward building 92,000 new units.

Crocker Sprague Building Rehabbed

DUNKIRK, N.Y. - The historic Crocker Sprague Building is being turned into eight two- and three-bedroom moderately priced apartments by Chadwick Bay, LLC, a local real estate development and management company.

In November 2008, the Community Preservation Corp. (CPC) closed a $750,000 construction and permanent loan insured by the State of New York Mortgage Agency to rehabilitate the three-story landmark, originally built and owned by the Wagner Co. to serve as a retail and grocery store in 1925.

When finished, the apartments will have exposed brick interior walls, 12-foot ceilings, and upscale appliances and finishes. The project also includes surface parking and 3,600 square feet of ground floor retail space.

The property is located in an Empire Development Zone. The city received a $1 million grant from the Restore New York Community Initiative Program, which will be applied to the $1,825,000 redevelopment budget.

SOUTHEAST

Nonprofit Completes Renovation

AUGUSTA, GA. - Progressive Redevelopment, Inc. (PRI), has completed the renovation of Cedarwood Apartments here. The acquisition and renovation of the 184-unit affordable apartment community was undertaken to preserve affordable housing in the community. The property was structurally sound but in need of upgrades, including a new roof, siding, windows, doors, an energy-efficient HVAC system, and interior finishes, according to PRI, a nonprofi t developer. The renovation was financed with low-income housing tax credit (LIHTC) equity from Enterprise Community Investment, Inc., and a loan from Enterprise’s multifamily mortgage finance group. Additional financing included loans from the Georgia Department of Community Affairs and the Federal Home Loan Bank. Commerce Bank was the construction lender.

WEST

Boston Capital Invests in Arizona

PHOENIX - Boston Capital has invested in Amber Pointe Apartments, a to-be-built 56-unit affordable housing development for seniors. The firm provided LIHTC equity, and Boston Capital Finance provided a $7 million construction loan and a $1.1 million permanent loan.

The general partner is Ohio-based The NRP Group, LLC.

Located 3.5 miles south of downtown Phoenix, Amber Pointe Apartments will have 32 one-bed/onebath units and 24 two-bed/two-bath units. The apartments will be available to seniors 62 and older, with incomes no more than 40 percent and 50 percent of the area median income.

Amenities will include a community center and a computer room. Transportation, elder outreach, senior wellness programs, and other services will be provided by the Area Agency on Aging, Region One, Inc.