An affordable housing community in Indiana will be preserved and rehabilitated after securing financing, including the first Fannie Mae Mortgage-Backed Security as Tax-Exempt Bond Collateral (M.TEB) deal with 4% low-income housing tax credits (LIHTCs) in the state, according to officials.

Owned by Gene B. Glick Co., the 307-unit Carriage House of Evansville dates back to 1978 and is a 100% Sec. 8 community serving tenants earning no more than 60% of the area median income.

CRG Residential is the general contractor on the project and is performing the rehabilitation, which will include new flooring, cabinetry and countertops, energy-efficient light fixtures, appliances, doors and trim, and complete bathroom renovations.

Mortgage banking firm Merchants Capital announced securing $21.4 million in funding using the M.TEB program. The execution utilized publicly issued tax-exempt bonds and 4% LIHTC equity provided by PNC Bank to fund approximately $11 million in repairs, renovations, and upgrades to the community.

“We are excited to partner with Fannie Mae and Glick to preserve much-needed affordable housing in the state of Indiana,” said Michael R. Dury, president of Merchants Capital. “Fannie Mae’s M.TEB program gives access to a lower cost of capital, which allows the development team to substantially renovate the community. As with any project involving Glick, the company’s vision and strategy is first class, and, at the end of the day, the completion of this project is a win for the tenants, which is wonderful.”