The Union Gospel Mission (UGM) of Tarrant County will use approximately $11.9 million in low-income housing tax credit (LIHTC) equity to develop a 104-unit supportive housing community in Fort Worth, Texas.
Hunt Capital Partners announced that it is providing the funding to the organization for The Vineyard on Lancaster, which will include 94 LIHTC apartments as well as commercial space for a medical clinic. The development will be located in Fort Worth’s Near East neighborhood amidst UGM’s campus.
Founded in 1888, UGM is a Christian nonprofit organization whose mission is to provide food, shelter, and supportive services to homeless and formerly homeless individuals in the community. With its existing campus, UGM provides more than 400 units of emergency shelter, programmatic housing, and transitional housing in Tarrant County.
The construction of The Vineyard on Lancaster apartments fulfills a long-awaited strategic plan for UGM, serving as the final component for the existing housing continuum and possible destination for individuals and families that graduate from the supportive-service program.
The development is UGM’s first LIHTC project, according to Dana Mayo, executive managing director of Hunt Capital Partners. “Our investment in this development helps UGM to be able to continue its admirable work in the Tarrant County community, helping formerly homeless and low-income families have access to the affordable housing and resources they need to succeed,” he said.
The Vineyard on Lancaster is under construction and is expected to be completed by late 2019. Six units will be set aside for individuals with alcohol and/or drug addictions, disabilities, and HIV/AIDS as well as those who have been homeless, veterans, wounded warriors, farmworkers, and victims of domestic violence.
Once constructed, the community will feature two five-story, elevator-serviced buildings. The first building will include a first-floor commercial space, housing a medical clinic run by UGM, along with retail space. The second building will include a parking garage and laundry facilities as well as a management office. The Vineyard on Lancaster will offer 82 one-bedroom and 16 two-bedroom apartments for families earning 30%, 50%, and 60% of the area median income; six one-bedroom market-rate apartments will also be available.
Out of the 98 LIHTC units, 34 units will benefit from a 20-year project-based Housing Assistance Payment contract provided by Fort Worth Housing Solutions, and 10 of the LIHTC units will benefit from project-based rental assistance through a Sec. 811 subsidy contract.
The total development cost for The Vineyard on Lancaster Apartments is $19.76 million. Hunt Capital Partners facilitated the investment of federal tax credit equity by JPMorgan Chase through a proprietary fund. Other lending partners include Wells Fargo, which provided a $10 million construction loan. The Texas Department of Housing and Community Affairs provided a $1.1 million construction-to-permanent loan, and UGM provided a $5.98 million construction-to-permanent loan.
UGM is the general partner, developer, guarantor, lender, and ground lessor for The Vineyard on Lancaster. Fort Construction is the prime subcontractor, Hanson Schwarz is the architect, and Alpha Barnes is the property manager.