Love Funding, one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, announced the closing of a $3.14 million loan to be used for acquisition of the Egida Hogar San Antonio Apartments in Guayama, Puerto Rico.
Love Funding Senior Director Leonard Lucas secured the loan through U.S. Department of Housing and Urban Development 202/223(f) loan insurance program. The HUD program provided the borrower with low-rate, long-term, non-recourse financing to purchase the senior housing property. The borrower was able to acquire this age restricted Section 8 project and extend the affordability component by entering into a new 20-year Housing Assistance Payment (HAP) contract. The borrower was also able to realize additional savings through HUD’s reduced application fee incentive for projects located in a Qualified Opportunity Zone.
“Given the current economic climate and continued impacts of the pandemic, the need to preserve affordable housing remains paramount,” said Leonard Lucas, Senior Director at Love Funding.
The project is an existing 202 rental community restricted to senior households and currently consists of 60 units within two, two-story apartment buildings. All units are covered under a project-based Section 8 HAP contract that runs for a period of 20 years. The project also includes a lower mortgage insurance premium of 0.25%.