Love Funding Secures $7.2 Million Loan for Construction of Two Affordable Communities in Michigan
Love Funding, one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, announced the closing of $7.2 million in loans for the construction of 501 Eastern and Stockbridge Apartments, two affordable communities in Grand Rapids, MI.
The two communities will offer low income housing, supportive housing and market rate units. 501 Eastern will be comprised of 65 units in two four-story buildings. 61 of the units will be designated as affordable units and 17 will be reserved for homeless youth. Additionally, a portion of the apartments will be live/work units designed for residents with small businesses. Stockbridge Apartments will offer 64 units, 51 will be set-aside for low income housing. In addition to four multifamily floors, the property will contain partial ground-floor commercial space. Both communities will also feature many amenities for the residents, including community rooms, fitness centers, kid zones, conference rooms and more.
The financing for both communities was secured by Love Funding through the U.S. Department of Housing and Urban Development’s 221(d)(4) loan program. The mortgage insurance allows Love Funding to provide low-rate, non-recourse financing for the construction and for a subsequent 40-year term.
The Michigan State Housing Development Authority awarded both projects 9% Low Income Housing Tax Credits (LIHTC) which will allow for a substantial equity contribution to the projects. Additionally, the borrower secured HOME Funds from the City of Grand Rapids, as well as an allocation of Affordable Housing Program Funds.
The borrower is a local non-profit housing corporation that seeks to provide housing for low-to-moderate income families. The corporation assists thousands of families with housing and offers additional programs and services to the families.
For more information, contact Love Funding at www.lovefunding.com.