Love Funding, one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, announced the closing of an $8.71 million loan for the acquisition and substantial rehabilitation of Arnold Gardens, a 68-unit affordable apartment community in Suitland, Maryland.
Senior Director Holly Bray of Love Funding’s Washington D.C. office secured the financing through the U.S. Department of Housing and Urban Development’s 221(d)(4) loan insurance program. The program insures financing for up to 40 years for the new construction or substantial rehabilitation of multifamily rental or cooperative housing for moderate-income families, the elderly and the handicapped.
In this case, the property needed significant repairs that might have deterred a potential buyer. Built in 1971, Arnold Gardens required replacement of all electrical systems, hot water heaters, older windows and sliding glass doors, among other improvements. Love Funding was able to combine the non-recourse FHA financing with an award of 4 percent low-income housing tax credits to help the buyer, Gragg Cardona Partners LLC, acquire the property and address the nearly $4 million in repair and improvement costs. Boston Capital agreed to purchase the tax credits.
The transaction helps preserve 55 units of affordable housing at the property that are subject to a project-based Section 8 HAP contract and which will be extended for another 20 years. The remaining 13 units will be restricted to households earning 60 percent or less of the area median income.
For more information, contact Holly Bray at (202) 887-1849.