Hunt Capital Partners and HACEP Construct New Development Using RAD
LOS ANGELES, Dec. 20, 2018 – Hunt Capital Partners, in collaboration with the Housing Authority of the City of El Paso (HACEP) and Versa Development, LLC, announced the closing of $13.4 million in federal low-income housing tax credit (LIHTC) equity financing for the new construction of Medano Heights Apartments. Located in El Paso, Texas, the new construction of Medano Heights is part of HACEP’s initiative to convert its entire portfolio of 6,100 public housing units into Section 8 project-based rental assistance units through the Rental Assistance Demonstration (RAD) program.
Medano Heights will consist of replacement housing for 141 units at Roosevelt, an existing HACEP public housing community. When construction is finished in December 2019, Medano Heights will provide 141 affordable housing units and five market rate units spread across eight garden style buildings. All tenants at the existing Roosevelt community will have the right to relocate to Medano Heights upon the project’s completion, with HACEP spearheading relocation efforts.
“Medano Heights Apartments is the tenth transaction and twenty-third property HACEP has partnered with Hunt Capital Partners on to revitalize and construct,” said Hunt Capital Partners Executive Managing Director Dana Mayo. “We are glad to work with our long-time partners in their mission to convert their properties through the RAD program.”
Medano Heights’ LIHTC units will be restricted to families who earn up to 30, 50, and 60 percent of the area median income. Medano Heights will have a soft leasing priority for eight units for special needs households. The development will also offer a clubhouse with community kitchen, central laundry facilities and library, picnic areas, playgrounds, on-site management and tenant service coordination. The potential coordinated tenant services include social events, character building programs, notary public services, financial planning courses, health screenings, ESL courses, income tax preparation, GED preparation, along with health and nutritional courses.
The total development cost for Medano Heights is $34.02 million. Hunt Capital Partners committed a total of $13.42 million in federal LIHTC equity to the project, facilitating the investment by JPMorgan Chase through its proprietary fund, Hunt Capital Partners Tax Credit Fund 26. Other capital providers for the development include PNC, who provided a $7.64 million construction loan and a $7.64 million permanent loan in partnership with Freddie Mac. The Paisano Housing Redevelopment Corporation provided a construction to permanent loan of $10.53 million, and HACEP provided a $1.46 million construction to permanent loan.
Paisano Housing Redevelopment Corporation and VDC Medano Heights, a subsidiary of Versa Development, are the co-developers. HACEP affiliates are acting as the contractor and property manager. Pavilion Construction is the prime subcontractor and Gonzalez Newell Bender Inc. is the architect.
About Hunt Capital Partners
Hunt Capital Partners (HCP) is the syndication division of Hunt Companies, Inc. (Hunt). HCP specializes in the syndication of Federal and State Low-Income Housing, Historic and Solar Tax Credits. Since the successful launch of its first fund in the fall of 2011, HCP has raised over $1.4 billion in tax credit equity. Founded in 1947, Hunt is a privately held company that invests in businesses focused in the real estate and infrastructure markets. The activities of Hunt’s affiliates and investees include investment management, mortgage banking, direct lending, loan servicing, asset management, property management, development, construction, consulting and advisory. For more information on Hunt Capital Partners, please visit www.huntcapitalpartners.com, or for Hunt Companies, please visit www.huntcompanies.com.
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