Hunt Capital Partners is providing approximately $10.1 million in low-income housing tax credit (LIHTC) equity financing for the construction of Spruce Ridge in Pawcatuck, Conn.
Spearheaded by NeighborWorks New Horizons of New Haven, Conn., Spruce Ridge is an affordable and workforce development that will provide 86 housing units for families.
The development is significant for Pawcatuck, a community with over 5,000 residents, many of whom are experiencing rent burden. The median income of the area was $67,670 in 2016, according to a market study by Novogradac & Co. However, 43% of the households in the area earned well below that number, making less than $40,000, reported Hunt officials.
“Developing Spruce Ridge is an important step toward reducing the number of rent-burdened households in Pawcatuck,” said Dana Mayo, executive managing director at Hunt Capital Partners. “The dedication of NeighborWorks New Horizons for Spruce Ridge has been exceptional.”
Construction is taking place in two phases. The first tranche involved the construction of 43 units. These units were completed in April 2017 and are fully occupied. Construction for phase two, the final 43 units, began in January.
Upon completion in December, Spruce Ridge will provide four garden-style residential buildings containing 86 units, including two units for employee housing. There will be 67 LIHTC units restricted to households earning up to 60% of the area median income (AMI). Seventeen units will be allocated for workforce housing for families earning up to 120% AMI.
Spruce Ridge’s LIHTC apartments are priced between 12% and 77% below the average competing rents surveyed in Novogradac’s study. Likewise, the workforce units are priced between 12% and 14% below the average surveyed competing rents. The discount makes the units even more accessible to families who need it most in Pawcatuck.
All buildings will include full sprinkler systems, and each will have an elevator. Every apartment will have a refrigerator, a range/oven, a dishwasher, a washer and dryer, window treatments, and central heating and cooling. Flooring inside the units will be engineered wood. Tenants will be able to enjoy a fitness center, two playgrounds, and two community rooms with full kitchens.
Residents will also have access to a services coordinator, who will provide assistance, mentorship, and program referrals to residents for activities such as beginning or returning to school, major purchases, obtaining employment, and career development.
The total development cost for Spruce Ridge is $23.9 million. Hunt Capital Partners facilitated the investment of federal LIHTCs, awarded by the Connecticut Housing Finance Agency, through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 24.
NeighborWorks New Horizons is the developer, managing member, and property manager. Its national affiliate, NeighborWorks Capital Corp., provided construction financing for the development. Four Seasons Construction of Centerbrook, Conn., is the general contractor. Bernard J. Lombardi of Hamden, Conn., is the architect.