HUD Briefs

Friday, May 5, 2017

The ribbon cutting for Glennview Townhouses II in Jersey City, N.J., was April 7, completing a seven-phase redevelopment that began in 2001. Glennview II, which costs $21.4 million, provides 56 affordable apartments and eight market-rate apartments. Financing for the last installment included $4.7 million in Hurricane Sandy funding provided by the New Jersey Housing and Mortgage Finance Agency and $9.5 million in low-income housing tax credit (LIHTC) equity. Bank of America invested in the LIHTCs and also provided a $3.7 million construction bridge loan. An additional $3.3 million in Jersey City Housing Authority (JCHA) capital funds and $6.2 million in conduit bonds were provided. The initial phase was financed with a $34 million HOPE VI grant. The seven phases are part of a revitalization plan for the former Lafayette Gardens public housing site. Of the seven phases, two accommodate senior residents while the remaining five are family sites. 

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Love Funding announced March 22 the closing of a $2.6 million Federal Housing Administration (FHA) loan for the acquisition of an assisted living and memory care facility in Tomball, Texas. The loan, secured through the U.S. Department of Housing and Urban Development’s (HUD’s) Section 232/223(f) program, will pay down the bridge loan and provide financing for a 35-year term.

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KeyBank announced March 27 the renovation of the Martin Luther King Revitalization Apartments in Troy, N.Y. KeyBank pledged a $6.2 million loan and will invest up to $12 million in low-income housing tax credit (LIHTC) equity to preserve 46 apartments in the 1971-constructed building. Apartments are available to residents earning between 30 and 80 percent of the AMI. This renovation is the first phase for the property and will be conducted via HUD’s Rental Assistance Demonstration (RAD) program. The Troy Housing Authority partnered with Beacon Communities Development to renovate and preserve 104 apartments through HUD’s RAD program. Once completed, the Martin Luther King Revitalization Apartments will reserve seven apartments for families who are homeless, with a specific focus on homeless veterans. Residents will have access to services such as home visitation, life-skills training, medical transportation and individual counseling. The services will be provided by Troy Housing Authority’s nonprofit partners, Unity House and Joseph House. 

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HUD announced April as Fair Housing Month 2017, with this year marking the 49th anniversary of the Fair Housing Act. The legislation became law April 11, 1968. HUD’s theme for this year is Fair Housing Equals Opportunity, highlighting the importance of equality in housing and affirming the Fair Housing Act’s role in confronting housing discrimination. 

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Candeur Group, an investment banking firm for the affordable housing industry, announced April 7 the closing of a $17 million LIHTC equity investment in the rehabilitation of Los Angeles’ La Puente Park Apartments. Developers Preservation Partners Development (PPD) will invest approximately $90,000 per apartment for rehabilitation, replacing major systems and completely renovating apartment interiors and common areas. The affordable housing property provides 132 apartments. The resyndication of the property will preserve the units for the tenants in this 100 percent HUD Project-based Section 8 Contract community. In addition to the LIHTC equity investment, the property was financed with $16.9 million in short-term bonds underwritten by Citigroup Global Markets Inc., as well as a $29 million FHA 221(d)(4) loan provided by Red Mortgage Capital LLC and $6.6 million of seller financing.