Bellwether Enterprise Real Estate Capital announced the closing of three loans totaling more than $35.3 million for affordable housing developments in Indiana, Maryland, and Tennessee.
Victor Agusta, executive vice president in Bellwether Enterprise’s Raleigh, North Carolina, office, originated the loans on behalf of Flaherty & Collins Properties in Indianapolis, Catholic Charities of Baltimore, and Pennrose in Kingsport, Tennessee.Here’s a look at the deals:
· Kingsport RAD Portfolio: Bellwether Enterprise provided a $14.3 million Fannie Mae tax-exempt bond collateral loan to finance the preservation of a portfolio of affordable housing properties for the Kingsport Housing Development Authority and developer Pennrose. The Kingsport Rental Assistance Demonstration (RAD) portfolio contains 381 affordable units, ranging from one- to five-bedroom units reserved for very low-income households. Through the RAD process, a new Section 8 Housing Assistance Payment (HAP) contract was obtained for 173 units, while 193 units are supported through a long-term project-based voucher contract. Renovation work throughout the portfolio was funded with 4% low-income housing tax credits (LIHTCs), tax exempt bonds, and secondary debt from local sources.
· DePaul House and Joachim House: Bellwether Enterprise provided an $11.4 million Federal Housing Administration (FHA)-insured loan to enable Catholic Charities of Baltimore to refinance two adjacent affordable housing developments for seniors and invest $7 million in capital improvements. The two properties contain 199 units, of which 192 are one-bedroom units and seven are two-bedroom units. As part of the transaction, DePaul House renewed its Section 8 contract, and Joachim House received a new Section 8 HAP contract through the recently established RAD notice for the Project Rental Assistance Contract program, which allows Section 202 properties to be converted to Section 8 to maintain affordability and nonprofit ownership over the long-term.
· Amber Woods II: Bellwether Enterprise provided a $9.6 million Freddie Mac tax-exempt loan to enable Flaherty & Collins Properties to improve and preserve the affordability of 200 apartments in partnership with Pathway Resource Center, a local nonprofit. Amber Woods II features one-, two-, and three-bedroom units reserved for very low-income households. Rents are subsidized through a Section 8 HAP contract that was renewed for 20 years as part of the transaction. Pathway Resource Center provides services to residents with a focus on workforce development and programs for children.