LINCOLN, NEB.—ng Opens Its Doors
Prairie Crossing, an $11.37 million mixed-income development, opened its doors Sept. 23. The 76- unit development consists of 20 townhomes and 56 one- and two-bedroom apartments, ranging in size from 782 to 1,547 square feet. Forty-three units are reserved for those earning up to 60 percent of the area median income (AMI), while the rest are market-rate.
The project, developed by Lincoln Housing Authority (LHA), was financed with $4.5 million in low-income housing tax credit (LIHTC) equity, syndicated by Enterprise Community Investment, Inc. Other sources included a $1.9 million first mortgage from West Gate Bank, a $3.9 million loan from LHA, and $700,000 in HOME funds from the state of Nebraska.
Old Theatre Makes Way for Firemen on Long Island
NYACK, N.Y.—Volunteer firemen will get 10 new affordable rental apartments at 20 South Broadway here. The historic Tappan Zee Playhouse, which had stood vacant since the 1970s, was demolished to make way for the three-story building.
The units are reserved for tenants earning up to 80 percent of the AMI. The building also includes a 5,000-squarefoot Wig Wam food market, the largest food market in the village.
KeyBank provided developer Sapounas, Inc., with $2.8 million in construction and permanent financing for the housing portion. A $717,000 lowinterest U.S. Small Business Administration 7(a) loan and a $100,000 express line of credit will finance the Wig Wam. Other financing includes $550,000 in soft HOME financing from Rockland County and an $800,000 Rockland County Sec. 108 low-interest subordinate loan.
MassHousing Program Preserves
Over the past two years, MassHousing's Sec. 8 Proactive Preservation Program (PPP) has kept more than 1,200 apartments affordable—mostly for residents that are elderly or disabled. PPP has committed more than $99 million in new mortgage loans to 10 housing developments with expiring Sec. 8 contracts.
PPP has targeted 61 rental developments that will be eligible to leave their affordable housing programs between 2009 and 2013 when their mortgages expire. The apartments were originally financed by MassHousing through Department of Housing and Urban Development (HUD) programs. HUD has given MassHousing a waiver that allows the agency to let owners take equity out of 30 of the 61 properties, provided the owners agree to keep the properties affordable. MassHousing can seek another waiver for the balance of the projects once refinancing transactions are completed for the first 30.
Property owners who refinance under the PPP will be required to execute a new Sec. 8 contract for the longest term possible, generally 20 years, and agree not to increase contract rents.
Providence Begins Lafitte Homes
NEW ORLEANS—Providence Community Housing, a nonprofit affordable housing developer founded by a coalition of Catholic groups in April 2006 in the aftermath of Hurricane Katrina, has started construction on the Edmundites Homes here.
The Society of St. Edmund donated nine of the 10 wood-frame houses originally built in the early 20th century. Providence and Enterprise Community Investment, Inc., partnered to purchase the 10th home. The houses are located four blocks from the site of the former Lafitte Public Housing development and will be rehabilitated into three-bedroom, two-bathroom single-family homes for low-income and market-rate housing.
The total construction cost for the homes is $1.6 million. Development costs were offset by a $90,000 grant from Enterprise and the AIG Disaster Relief Fund. The city plans to fund nine of the 10 homes with soft-second funds equaling $440,000 to support the purchasing efforts of low-income buyers. Construction costs have been financed through a 3.5 percent loan from the Neighborhood Housing Services of America-Community Development Financial Institution, sponsored by Whitney Community Development.
The Lafitte Homeownership Program and the renovation of the Edmundites Homes are initial steps in the overall redevelopment plan of the Lafitte-TremÃ© neighborhood. Site preparation for the Edmundites Homes began in July, and the houses will be completed by December 2008.
Alexandria Funds Acq-Rehab Deal
ALEXANDRIA, VA.—A run-down marketrate property here is getting a new lease on life as affordable housing, thanks to a joint effort from the city, the state, and Wesley Housing Development Corp.
Wesley Housing purchased Beverly Park Apartments in late 2005 with assistance from the city of Alexandria, the Housing Partnership Network, and United Bank. The developer announced in September that construction was beginning on the renovation, which will transform 41 one-bedroom apartments into seven studios, 18 one-bedrooms, six two-bedrooms, and two three-bedrooms.
The city loaned Wesley Housing $2 million at an interest rate of 2 percent, in return for a commitment to maintain the property as affordable housing for 40 years. The Virginia Housing Development Authority provided both construction and permanent financing at an overall blended rate of 3.17 percent. The project also benefited from $2.7 million in equity from the sale of LIHTCs to Apollo Housing Capital, now known as RBC Capital Markets.
Tacoma Goes Modular
TACOMA, WASH.—The Tacoma Housing Authority is redeveloping the former Hillsdale Lumber sawmill site into a 110-unit housing community, which will be the agency's first modular housing project to date.
Hillsdale Heights will feature 60 low-income rental units and 50 affordable for-sale townhomes.
Modular homes are built in sections in an indoor facility, then shipped and assembled on site. The process reduces construction waste and cuts down development time. Hillsdale Heights, which is in the conceptual design stage, is projected to be completed by the end of 2009.
The project team includes design firm GGLO; Absher Construction, Inc.; and Guerdon Enterprises.
Rehab deal receives $7 million in LIHTCs
OCEANSIDE, CALIF.—Red Capital Markets, Inc., recently syndicated $7.6 million in LIHTC equity for the acquisition and rehab of Country Club Apartments here. The sponsor is Wakeland Housing & Development Corp.
The development was constructed in 1974 and consists of one two-story building with 90 affordable units. The project will undergo substantial rehabilitation at about $63,153 per unit.