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.