Low Income Housing Tax Credits
LIHTC Const/Perm 4%
|Client & Transactional Partners||NORTHWEST HOUSING ALTERNATIVES INC||Our Role||Lender|
The proposed Construction Loan will support the redevelopment, using 4% LIHTC, of 70 units of family affordable housing located in Salem and Monmouth, Oregon (the “Project”). The Project will consist of two properties: Sunnyslope Manor Apartments and College Manor, which contain 50 units (28 two-bedroom units, 18 three bedroom units, and 4 four bedroom units), and 20 units (2 studio units, 16 one bedroom units, and 2 two bedroom units), respectively. 45 units are restricted at 50% AM and 25 units are restricted at 60% AMI. Of the 70 total units, 41 have project-based vouchers (PBV). Project financing includes $5.9M in 4% LIHTC proceeds provided by KCDC; Key’s $9.9MM Construction Loan, $2.8MM subordinated Seller Note, GP capital/existing reserves of $409M and $5.4MM of Housing Preservation Funds. NOAH is providing a $4.55MM fixed rate permanent loan which will be rate-locked at close. This financing structure is low risk and experiences a very low default rate. The properties are in Salem and Monmouth in Central Oregon, which are strong and growing real estate markets.