LHP Capital of Knoxville has reached a milestone by completing the renovation of its 10,000th affordable housing unit.
The announcement was made at a recent ribbon-cutting ceremony commemorating the $11.5 million renovation of Imperial Garden Apartments, a 300-unit affordable family housing complex in Smyrna, Tenn.
The 10,000th rehabbed unit was turned over during the Imperial Garden renovation, according to Carr Hagan, president of LHP Development, one of LHP's operating companies.
“Every single one of those apartments creates a home for someone—a single mom, senior citizen, individual with a disability—someone who otherwise could not afford a decent place to live and certainly not one of the quality and security we have here,” Hagan said. “LHP is proud of our role in helping communities renovate, rebuild, and improve the living conditions for individuals and families who need affordable and quality housing.”
LHP spent on average $35,000 to remodel each unit, adding new kitchen cabinetry and modern fixtures, installing vinyl plank flooring and energy-efficient lighting, and replacing old appliances with new Energy Star appliances.
In addition, significant improvements were made to the apartment exteriors and common areas. The community swimming pool area received a total makeover with new furniture, picnic tables, and a stamped-decorative concrete deck, and the leasing office was remodeled adding a new community-computer room.
Twenty-one apartments were rehabbed specifically to meet the needs of people with hearing or vision impairments as well as physical disabilities. These modifications included adding such items as individual door and smoke-detector systems with audible and visual alarms and roll-in showers and front-controlled appliances.
Financing for the overall project included a $25 million Federal Housing Administration–insured Sec. 221(d)(4) mortgage originated by Walker & Dunlop and approximately $12 million in low-income housing tax credit (LIHTC) equity capital that was provided by First Tennessee Housing Corp. in its role as investor limited partner.
Tennessee Housing Development Agency (THDA) made approximately $33 million in financing available to LHP through the allocation of federal LIHTCs and tax-exempt bonds. Funding commitments of this magnitude would not have been possible at one site without special consideration and a waiver by THDA’s staff, tax credit committee, and board of directors, according to LHP leaders.
“Imperial Garden received the largest single-site award of THDA bond and tax credit resources in the 30-year history of its tax credit program,” said Hagan. “It took foresight and creativity by THDA to help us amass the amount of capital needed to renovate thoroughly this 300-unit complex, and we thank them for their consideration and support.”
As part of the requirements of the LIHTC financing, the renovated apartments must remain affordable for people with limited incomes for 15 years. Imperial Garden has one-, two-, and three-bedroom apartments.