The construction of a 58-unit affordable housing development in Klamath Falls, Ore., took a step forward with the financial closing of federal low-income housing tax credit (LIHTC) equity.
Carleton Hart Architecture is the project architect
Hunt Capital Partners announced that it is providing $5.61 million in LIHTC equity to the Klamath Housing Authority and Luckenbill-Drayton & Associates.
The financing is a key in the development of the $16.15 million Sunrise Vista Apartments. Hunt Capital Partners facilitated the investment through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 31. Umpqua Bank provided an $8.1 million construction tax exempt bond loan, along with a $2.45 million permanent bond loan. Oregon Housing and Community Services provided a $7.22 million construction to permanent subordinate LIFT loan, and Klamath Housing Authority provided a $136,943 permanent subordinate weatherization loan.
The development will also benefit from a 20-year project-based rental assistance contract through the Department of Housing and Urban Development’s Section 811 Supportive Housing for Persons with Disabilities program covering six units.
Home to approximately 21,000 residents, Klamath Falls is a rural community located in southern Oregon that has felt the acute need for affordable housing. According to the Census, 24.5% of Klamath Falls residents live in poverty.
Situated on just over 3 acres, Sunrise Vista Apartments is the second phase of a master development plan by the Klamath Housing Authority. Hunt Capital Partners syndicated the first phase, Sky Meadows Apartments, a 37-unit scattered-site LIHTC and Section 8 development, with its main site located adjacent to Sunrise Vista Apartments.
“About one in three households are severely burdened in Klamath Falls,” said Dana Mayo, executive managing director at Hunt. “We are excited to partner with both Luckenbill-Drayton & Associates and the Klamath Housing Authority on Sunrise Vista Apartments and increase the affordable housing stock in the city.”
Featuring two two-story garden-style buildings, six two-story townhouse-style buildings, and one single-story community building, the development will offer 22 one-bedroom, 18 two-bedroom, and 18 three-bedroom units, for households earning up to 60% of the area median income.
Common area amenities will include a community room with a kitchen, central laundry, on-site management, a playground and playfield, and community gardens. Additionally, Sunrise Vista Apartments will offer residents classes in parenting, cooking, and healthy food selection. All units will include balconies/patios, blinds, carpet and vinyl flooring, coat closets, wall air-conditioning, ceiling fans, dishwashers, ovens, microwaves and refrigerators. Two- and three-bedroom units will offer washer and dryer hookups.
Luckenbill-Drayton & Associates will serve as the co-developer and sponsor, while Klamath Housing Authority is the co-developer, co-sponsor, and property manager. Bogatay Construction is the general contractor, and Carleton Hart Architecture is the project architect.
