Love Funding, one of the nation’s leading providers of FHA multifamily and healthcare financing, announced the closing of loan refinancings for Phase I and II of Wesley Forest Townhomes, garden-style townhome communities in Memphis, Tennessee, that were originally built utilizing low-income housing tax credits (LIHTCs).
Love Funding Director Christopher Schilling of the New York office secured the financing for both transactions through the U.S. Department of Housing and Urban Development’s 223(f) loan insurance program. The program allows the refinancing of debt on existing multifamily properties originally funded through conventional or FHA-insured mortgages, as long as they do not require substantial rehabilitation.
Phase I of Wesley Forest was built in 2000 and consists of 100 units spread among 20 one- and two-story buildings. Phase II of the project, which added another 65 units, was completed in 2002. Rental limits on both developments are set by the Tennessee Housing Development Agency as a participant in the LIHTC program. Both developments received the tax benefits in exchange for agreeing to set aside 100 percent of the residential units for persons earning either 50 percent or 60 percent of the area median income.
Debt-service savings secured through the transactions will help the ownership group, Southeast Regional Development Corp., take on needed repairs and fund replacement reserves. James W. Gibson, a native Memphian with more than 17 years experience in developing and owning affordable housing throughout the area, serves as founder and chairman of the group’s board.
For more information, contact Christopher Schilling.