Key financing has been arranged for Envolve Communities to rehabilitate a 172-unit affordable housing development in Houston.
The developer has secured $14.6 million in federal low-income housing tax credit (LIHTC) financing from Hunt Capital Partners to renovate Coral Hills Apartments, which is comprised of 16 two-story residential buildings as well as a single-story community building. The development serves families earning up to 30%, 50%, and 60% of the area median income.
Once completed in February 2024, Coral Hills will offer 121 one- and 51 two-bedroom units for families earning up to 30%, 50%, and 60% of the area median income.
The rehabilitation will cover unit exteriors, interiors, and other site improvements.
The interior rehabilitation will focus on upgrades to kitchen appliances, cabinetry, countertops, bathroom vanities, lighting fixtures, door hardware, and smoke detectors alongside the installation of new heating, ventilation, and air conditioning systems.
The scope of work also includes converting nine apartments to serve residents with mobility impairments as well as converting four apartments to serve residents with hearing and vision impairments. Additionally, accessibility improvements will be made to the leasing office, the common area kitchen, and the laundry room.
“We are thrilled to collaborate with Envolve Communities again on the rehabilitation of Coral Hills, where upgrades seek to not only create a renewed living environment for residents, but also provide an increase in housing choices for families with accessibility needs,” said Hunt Capital Partners executive managing director Dana Mayo. “According to Empowered Cities, in Houston, 27% of households with a person with a disability pay more than 50% of their income toward housing. We’re glad to invest in Coral Hills, a development that both alleviates the rent cost burden and improves the overall quality of life for these families.”
Envolve Communities plans to provide an array of free resident services through site staff or volunteers. This include transportation, tutoring and recreational activities for children, and adult supportive services.
The Coral Hills development team includes general contractor Whitestone Construction Group and architect Dyke Nelson Architecture.
The total development cost for Coral Hills is $24.8 million. Hunt Capital Partners facilitated the federal LIHTCs through a multi-investor fund. M1 Bank provided $11.8 million as a construction loan, and Bellwether Enterprise Real Estate Capital provided a $6.7 million permanent loan.