A scattered-site affordable housing development, with original construction dating back to 1920, has moved closer to being rehabilitated in Baton Rouge, Louisiana.
Hunt Capital Partners announced the closing of $6.15 million in low-income housing tax credit (LIHTC) equity financing for the renovation of 34 detached single-family and duplex homes spread across 31 buildings on scattered sites. The Government Corridor homes will serve families earning up to 30%, 50%, and 60% of the area median income. Moreover, 30% of the homes will be set aside for special-needs households.
“We are pleased to invest in Government Corridor, utilizing both state and federal tax credits as well as Community Development Block Grant (CDBG) disaster funds to provide capital needed to renovate and preserve these important historical homes as well as extend their affordability. These units have served as a home for the community for over 100 years,” said Hunt Capital Partners executive managing director Dana Mayo. “We are excited to join Gulf Coast Housing Partnership (GCHP) in their mission to revitalize the Gulf Coast regions that were impacted by so many hurricanes, including the recent Hurricane Laura. GCHP has made a positive impact on the Baton Rouge community, having developed 569 units in the area to date, and we are grateful to join them in further transforming the area.”
The scope of renovations includes substantial changes to most of the properties, including new floor plans and layouts. Unit interiors will be updated with new flooring, carpeting, kitchen appliances, coat closets, as well as washers and dryers. Designed to meet Enterprise Green Communities certifiable standards, each unit will be constructed with insulated entry doors, enhanced attic and floor insulation, low-flow plumbing fixtures, and Energy Star-rated installations such as HVAC systems and LED lighting.
Further, windstorm resiliency upgrades will ensure that the homes are equipped to withstand the windstorm needs of the community, said officials.
Seven units will be fitted for audio- and visual-impaired residents, and two will be accessible. Supportive services will additionally be offered to single-parent households. Family Service of Greater Baton Rouge will provide services that include family counseling, parenting education, domestic abuse counseling, and HIV and AIDS counseling. The developer also plans to connect residents to Family Service of Greater Baton Rouge’s additional resources and programs.
The total development cost is $8.6 million. Hunt Capital Partners raised the federal LIHTC equity through Hunt Capital Partners Tax Credit Funds 31 and 43. United Bank provided $3.8 million as a construction loan alongside a $380,000 permanent loan. The Louisiana Office of Community Development provided a $1.7 million construction to permanent loan from CDBG disaster funds. GCHP provided a $355,000 construction to permanent loan.
Government Corridor is less than 15% occupied as units have been held vacant pending the upcoming renovations. Residents of the occupied units will be relocated until the first phase of the project is complete, according to project partners.