HB+D Assists in First Deals Closed Under HUD Tax Credit Pilot Program in the Country: Highland Companies close first 9% LIHTCS and HUD-insured Mortgage Loans under FHA 223(f) Pilot Program for California Tax Credit Properties

February 8, 2013 at 12:34 am | Blog | No comment

 

Congratulations to firm client, Highland Companies, for closing the first FHA 223(f) program deals in the country. Highland successfully closed on the acquisition and financing of the following 9% LIHTC properties under the HUD Tax Credit Pilot Program:

Villa Vasona Apartments, Los Gatos, California.
107 Units of 100% Affordable Housing Development for Families financed with (i) $13,250,000 HUD-insured loan under Section 223d (Tax Credit PILOT) Loan; (ii) 9% Low-Income Housing Tax Credit equity in an approximate of $9,863,000 from RBC Capital Markets LLC; (iii) long-term ground lease with the Town of Los Gatos, California; (iv) rental assistance under a Housing Assistance Payment Contract with HUD; and (v) welfare property tax exemption.

Twin Oaks Apartments, Vacaville, California.
46 units of 100% Affordable Housing Development for Families financed with (i) $4,864,000 HUD-insured loan under Section 223d (Tax Credit PILOT) Loan; (ii) 9% Low-Income Housing Tax Credit equity in an approximate of $3,780,000 from RBC Capital Markets; (iii) rental assistance under a Housing Assistance Payment Contract with HUD and (iv) welfare property tax exemption.

The launch of HUD’s Housing Tax Credit Pilot program is expected to streamline the application and processing of FHA-insured mortgage loans for affordable housing projects which utilize low income housing tax credits, allowing for closing within as little as 90-120 days from submission. The Pilot program will modify elements of the existing FHA 223(f) program for use specifically with affordable projects, whose substantial rehab costs previously had triggered the requirement that loans be processed pursuant to lengthier and more cumbersome FHA 221(d)(4) program guidelines. Since many affordable projects must be completed within limited timeframes, the FHA 221(d)(4) simply was not compatible as a viable option for a number of projects.

Jason A. Hobson, Symeon K. Davis and Scott Chamberlain (project manager) led the firm’s attorneys on the financings.

 

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