Redevelopment Financing for Detroit Affordable Apartments

Love Funding closed a $4.7 million loan to redevelop part of an affordable apartment community in Detroit in combination with equity provided by low-income housing tax credits (LIHTCs).

Oakman Townhomes will be built on a part of the site that currently houses Ryan Court Apartments, a garden-style apartment community that was built between 1947 and 1949. The new project, which will offer 72 units spread over five residential buildings and include a community building, will reserve at least 40 percent of the 72 units for tenants whose gross income does not exceed 60 percent of the median income for the area. All of the new units will be covered by a Section 8 housing assistance payment (HAP) contract that will help subsidize rents for a 20-year period.

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 insurance program, which allows for the construction or substantial rehabilitation of multifamily properties. The Michigan State Housing Development Authority provided a substantial equity contribution to the project with the awarding of 9 percent LIHTCs.

For more information, contact Bruce Gerhart at (216) 583-0812.

Related Posts

Prairie Vista Luxury Apartments October 22 1022 2013
InterPointe Apartment Homes November 26 1126 2013
Gates Manor December 31 1231 2013
Union Arcade May 14 514 2014
Marymount Manor May 27 527 2014
Encore Townhomes July 31 731 2014
Walnut Grove Nursing & Rehab November 13 1113 2014
River's Edge Apartments December 10 1210 2014
Imani Fe Apartments May 19 519 2016
Chisholm Creek Apartments May 25 525 2016