Love Funding, one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, announced the closing of two loans totaling $5.19 million under a new federal program for refinancing affordable rental properties that are backed by low-income housing tax credits (LIHTCs).
The two properties involved are Todd Creek Apartments, a 150-unit community in Memphis, Tennessee, and Royal Arms Apartments, a 48-unit community in Elkton, Kentucky. Todd Creek is a Section 8 property that was built in 1974 and substantially renovated in 2012 using LIHTCs and a HOME Loan through the City of Memphis. Royal Arms is a Section 8 and LIHTC apartment project that was built in 1980 and will use the funds to undergo rehabilitation.
Love Funding Senior Director William E. Jones Jr. of the New York office secured the loans through the U.S. Department of Housing and Urban Development’s Section 223(f) Pilot LIHTC program. The agency introduced the program in 2012 to help preserve affordable apartment properties in select markets. It has since been expanded nationwide. The program, which dramatically accelerates HUD application processing and increases the allowance for renovation and repairs, is supporting the acquisition and rehabilitation of affordable housing properties across the country at a time when the shortage of such housing is growing.
“In both cases, the program is going to help these projects stay viable and available to households of limited means,” Jones said. “The combination of low-rate, non-recourse FHA financing, faster loan processing times and higher allowances for repairs is making this program a real draw, which speaks volumes about the work HUD is doing to preserve and update affordable housing around the country.”
For more information, contact William Jones at (212) 953-020.