Love Funding, one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, announced the closing of a $7.3 million loan to fund a full rehabilitation of a Section 8 apartment building in Canton, Michigan, that offers below-market rents to senior and disabled residents.
Canton Place, which was originally financed under the U.S. Department of Housing and Urban Development’s 202 loan program when it was built in 1986, was awarded 4% low-income housing tax credits (LIHTCs) through the Michigan State Housing Development Authority. The tax credits will allow the property to benefit from a full rehabilitation, including new carpeting, flooring, lighting, plumbing fixtures and windows. All but one of the property’s 118 apartment units are 100% Section 8 based, and are designated for elderly or disabled residents whose income is 60% or less of the area median income.
Love Funding Midwest Regional Director Bruce Gerhart secured the loan through the U.S. Department of Housing and Urban Development’s 221(d)(4) loan program, which insures mortgage loans to facilitate the new construction or substantial rehabilitation of multifamily rental or cooperative housing for moderate-income families, elderly and the handicapped.
Using the program enabled the property’s non-profit owner, National Church Residences, to fund the large-scale improvements and preserve the affordable rents through a low-rate, non-recourse 40-year term loan. NCR, which was founded in 1961, is the nation’s largest non-profit developer and manager of affordable senior housing. The organization currently has 254 projects throughout 28 U.S. states and Puerto Rico.
For more information, contact Bruce Gerhart at (216) 583-0812.