Key financing has been secured for the development of a permanent supportive housing community in Austin, Texas.
Hunt Capital Partners (HCP) announced that it has closed on $16.5 million in low-income housing tax credit (LIHTC) equity for Cady Lofts, which feature 100 studio apartments for people earning between 30% and 60% of the area median income and set aside for individuals who are experiencing homelessness; have physical, intellectual, and/or developmental disabilities; or are recovering from substance addictions.
SGI Ventures, a Texas Historically Underutilized Business, is the developer and administrative member. Nonprofit sponsor Austin Affordable Housing Corp. (AAHC), a subsidiary of the Housing Authority of the City of Austin (HACA), is the managing member. O-SDA Industries and Saigebrook Development will be co-development consultants.
Residents will receive project-based vouchers from HACA and the city of Austin under two separate Housing Assistance Payments (HAP) contracts. Under the first, 75 residents will receive a voucher through a 20-year project-based Section 8 HAP contract with HACA. Under the second contract, 25 residents will receive a rental subsidy from the city through a 15-year project-based local HAP contract.
Residents will be referred to Cady Lofts under the Department of Housing and Urban Development (HUD) Continuum of Care program, which promotes communitywide commitments to solving homelessness by rehousing homeless individuals, promoting access to key supportive service programs, and optimizing self-sufficiency among the unhoused. Case management services will be provided on-site by Endeavors, with funding provided through HUD.
HCP facilitated the syndication of the project’s LIHTCs through Hunt Capital Partners Tax Credit Fund 49.
Other financing partners include:
· Cadence Bank, which provided an $8.5 million construction loan;
· Central Texas Housing Accelerator Fund, which provided a $2 million construction loan;
· Texas State Affordable Housing Corp., which provided a $225,000 permanent loan and a $75,000 grant;
· The city of Austin, which provided a soft loan of $7.2 million through the Rental Housing Development Assistance program;
· AAHC, which provided a $850,000 sponsor loan; and
· Texas Department of Housing and Community Affairs, which provided a $1,082,400 HOME American Rescue Plan grant.
The project also has a number of other partners, including prime subcontractor Skybeck Construction; architect Three Bar Architecture; management agent Volunteers of America Texas Property Management Corp.; services and operations consultant New Hope Housing; supportive services provider Family Endeavors; and accountant Tidwell Group.