Love Funding, one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, announced the closing of a $10 million loan that blends tax credits and FHA financing to build and finance a new seniors-focused apartment community in West Palm Beach, Florida.
Paul Laurence Dunbar Senior Complex, named in honor of an African-American author who was born in Dayton Ohio in 1872, will offer 99 units exclusively for heads of household who are 62 or older. The building of this West Palm Beach Housing Authority community is part of the redevelopment of a 17-acre public housing project, formerly known as Dunbar Village. Dunbar was built in 1940 and its dated design and deterioration make it socially and economically unsustainable. In contrast, the new senior complex will consist of two three-story residential buildings and a separate clubhouse. The project was designed by award-winning REG Architects Inc. and is being co-developed by Landmark Development Corp. of Miami, Florida.
Love Funding Senior Director Robert Smallwood and Midwest Regional Director Bruce Gerhart secured the loan for the West Palm Beach Housing Authority, whose mission is to provide safe, decent and affordable housing to individuals and families with limited financial resources. The project will be funded with a combination of 4 percent low-income housing tax credits, tax-exempt bonds, a Florida State Apartment Incentive Loan (SAIL) with an Extremely Low Income (ELI) bonus, as well as the FHA-insured mortgage.
“The West Palm Beach Housing Authority struggled for years to secure funding to redevelop Dunbar Village,” said Laurel Robinson, executive director of the West Palm Beach Housing Authority since 1999. “Connecting with Bob Smallwood at a Chicago conference was the catalyst that led to this success. The process was hard and the journey difficult, but Bob never gave up on us or the project, and that is what made the difference. What this means to the neighborhood and, more importantly, to the people we serve, can’t be overstated.”
Smallwood and Gerhart secured the FHA portion of the funding through the U.S. Department of Housing and Urban Development’s 221(d)(4) loan insurance program. The program provides non-recourse, fixed-rate financing for a term of up to 40 years for the construction and permanent financing for new apartments or the substantial rehabilitation of existing apartments.