The Delaware State Housing Authority (DSHA) has received key funding to pay off construction and renovation debt for a portfolio of three properties.
Lument, the new combined organization of Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, has provided an $8 million Freddie Mac unfunded forward commitment loan to the state agency, which has a portfolio of more than 600 affordable units.
The 106-unit portfolio being renovated is comprised of Holly Square in Middletown and McLane Gardens and Peach Circle, both in Smyrna. The renovation project consists of substantial interior and exterior upgrades, as well as improved ADA compliance and accessibility for seniors.
The three properties will convert from public housing to Section 8-assisted affordable housing. Further, all 106 units will feature 20-year housing assistance payments contracts through the Rental Assistance Demonstration (RAD) program.
“We were happy to provide low-cost permanent financing for this substantial renovation project,” says Josh Reiss, director at Lument. “Every transaction that improves the availability of high-quality, affordable housing is an important one, and this was no exception.”
The portfolio received an allocation of 4% low-income housing tax credits that will restrict units at affordable levels based on the area median income. Holly Square and Peach Circle will be reserved for seniors 62 and older, with McLane Gardens having general occupancy.
Since 2014, Reiss and the Lument team have financed nearly $900 million in RAD transactions totaling approximately 12,000 units.
