A statewide pooled bond transaction has helped substantially renovate and preserve the affordability of 10 rural apartment communities across nine counties in North Carolina.
Greystone Affordable Development and Columbia, S.C.–based WWJ, one of the largest owners and operators of affordable housing in the Southeast, partnered with the federal and state offices of the U.S. Department of Agriculture’s (USDA’s) Rural Housing Service and the North Carolina Housing Finance Agency on the $55.8 million tax-exempt bond transaction. CAHEC served as the equity investor.
The 10 USDA Rural Development Section 515 properties, which include 440 aging and at-risk affordable units, all had crucial needs for rehab and modernization to remain viable housing options.
“Preserving 440 at-risk affordable apartment homes across the state of North Carolina required the deep commitment and shared vision of our development team, investment partners, and two North Carolina housing agencies,” said Tanya Eastwood, president and CEO of Greystone Affordable Development. “The tax-exempt bond structure and 4% housing tax credits were critical to the financial feasibility of the multifaceted project, and this much-needed affordable housing, now preserved, will undoubtedly transform lives and communities for years to come.”
The construction process for all 10 communities—two dating back to the 1920s and the rest built in the 1980s—was completed in 11 months, during which no residents were permanently displaced. The renovations averaged approximately $36,000 per unit for interior and exterior improvements, including new HVAC systems, kitchen appliances, and plumbing.
The developments include Austin Manor in Smithfield, Chadwick in Eden, Colonial Lodge in Warrenton, Kingswood in Kings Mountain, Lumberwood in Lumberton, Mill Tree in Marshville, Pinegate in Ahoskie, Sand Hill in Dunn, Tall Pines in Hamlet, and Woodwind in Reidsville.
This is the third statewide pooled transaction and Greystone’s 12th collaboration with WWJ, preserving over 6,000 affordable housing units to date, using the model they jointly pioneered a decade ago.
“After preserving apartment communities for over a decade, we simply cannot overstate the importance of programs such as USDA’s Section 515 debt platform,” said Joe Wilczewski, vice president of finance at WWJ and Boyd Management. “The joy on our residents’ faces and the pride in their newly renovated homes resonate through our communities every day and speak volumes about their impact.”
