Love Funding, one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, announced the closing of an $8.18 million loan for the rehabilitation of the Cottages of the Villages of Redford, an independent, assisted living and skilled nursing campus in Redford, Michigan.
Midwest Regional Director Bruce Gerhart of Love Funding’s Cleveland office secured the 40-year loan through the U.S. Department of Housing and Urban Development’s 221(d)(4) program, which insures mortgage loans for the construction or rehabilitation of multifamily housing for moderate-income families, the elderly and the handicapped.
The Cottages of The Villages of Redford was built in phases beginning in 1975 and currently consists of 16 one-story residential cottages, which contain eight studio units, 30 one-bedroom units and 26 two-bedroom units. The loan will be used to retire bond financing on these independent senior living cottages, demolish some of the older cottages, build 21 new cottages, and substantially renovate the remaining ones.
Love Funding worked in concert with the Michigan State Housing Development Authority (MSHDA) to secure short-term bonds for the renovation, and to obtain 4 percent low-income housing tax credits (LIHTCs). The LIHTCs will allow the property to offer 67 percent of its units to seniors earning 60 percent or less of the area’s median income.
The bonds were underwritten and sold by RBC Securities. The LIHTCs were syndicated and financed by Great Lakes Capital Fund. The property is owned by Presbyterian Villages of Michigan, a non-profit that has provided quality senior living housing and elder care services since 1945. Over the years, its network has grown to 26 senior living communities throughout Michigan.
For more information, contact Bruce Gerhart at (216) 583-0812.