The preservation and rehabilitation of an apartment community in Pima County, Arizona, has taken a big step forward.
Hunt Capital Partners (HCP), in partnership with local nonprofit Family Housing Resources (FHR), announced the closing of $7.3 million in federal low-income housing tax credit equity financing for the acquisition and rehabilitation of Talavera Apartments.
The development comprises six two-story residential buildings and one single-story community building. Following renovations, Talavera Apartments will offer 96 updated units restricted to families earning up to 50% and 60% of the area median income. Twenty-five units will also benefit from a Section 8 Housing Assistance Payment (HAP) contract.
“Located just north of Tucson, the rehabilitation of Talavera Apartments is part of HCP’s business plan to partner with local nonprofits and preserve affordable housing,” said HCP executive managing director Dana Mayo. “We are glad to partner with FHR on this project to meet an urgent and fundamental housing need.”
FHR was established in 1991 as a statewide organization dedicated to providing low- and moderate-income individuals and families an opportunity to obtain quality, affordable housing through both rental and home buyer support programs. For Talavera Apartments, FHR enlisted Gorman & Co. as development consultant. Gorman & Co.’s affiliates are also acting as general contractor, project architect, and the management agent.
Built in 1986 and previously renovated in 2002, the scope of the rehabilitation includes accessibility upgrades. Key exterior and interior building upgrades will also be made, such as painting, window and door replacements, new carpets, new appliances, and sidewalk, parking lot, pool decking, and exterior stair repair.
Once completed in March 2023, Talavera Apartments will provide 48 one-bedroom and 48 two-bedroom apartments. Units will include standard appliances, central heating and air conditioning, and patios. Residents will also have access to an extensive common area that features laundry facilities, a swimming pool, and 109 off-street parking spaces for no additional charge.
The total development cost for Talavera Apartments is $18.4 million. HCP syndicated the federal tax credits through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 43. Lenders include California Bank & Trust, which provided a $11.75 million construction loan as well a $7.15 million permanent loan. The city of Tucson provided a $400,000 HOME loan, and FHR provided a $400,000 soft loan as well as $2.7 million in seller financing.
