Developers Movin’ Out and Commonwealth Development Corp. have closed on the financing for a new mixed-income housing community in Madison, Wisconsin.
Mortgage banking company Merchants Capital will provide $7.25 million for The Ace, utilizing a Freddie Mac unfunded forward commitment. Merchants Bank of Indiana is also providing construction loan financing of $16.89 million.
Following the 30-month construction forward, the Freddie Mac $7.25 million 9% low-income housing tax credit forward will provide a 15-year permanent loan with a 35-year amortization period at a fixed interest rate that is locked in at the closing of the construction loan.
Additionally, as a member bank of the Federal Home Loan Bank of Chicago, Merchants Capital affiliate Farmers-Merchants Bank of Illinois was able to sponsor an Affordable Housing Program grant award for The Ace, bringing in $885,000 to the project.
With 70 units across two buildings, The Ace will integrate 14 units of supportive housing that target individuals with disabilities, veterans, and/or individuals at risk of homelessness. Fifty-nine units are reserved for individuals making at or less than 30%, 50%, or 60% of the county median income.
The development received a reservation of housing credits from the Wisconsin Housing and Economic Development Authority last year.
