Love Funding announced the closing of a $19.7 million loan for the construction of The Paddock at Grandview, a 240-unit affordable housing development in Nashville, Tenn.
It is the first project in Nashville for LDG Development, a longtime affordable housing firm that’s has been involved in 31 projects utilizing tax-exempt bonds and low-income housing tax credits (LIHTCs). Headquartered in Louisville, Ky., LDG works in multiple states, including Indiana, Kentucky, Louisiana, Texas, and Virginia.
Bruce Gerhart, Midwest regional director at Love Funding, secured the financing through the Federal Housing Administration (FHA) Sec. 221(d)(4) loan insurance program. The deal provides the development team with low-rate, nonrecourse financing for the duration of construction and for a subsequent 40-year term. The development will also use 4% LIHTCS and HOME funds.
All of the apartments at The Paddock at Grandview will be reserved for families earning no more than 60% of the area median income. The property will include 10 three-story residential buildings, a one-story clubhouse, and on-site surface parking.
Love Funding is a leading provider of FHA multifamily, affordable, and health-care financing.