Hunt Capital Partners and Pennrose Increase Affordable Housing Stock in Cape Cod Bay
LOS ANGELES, Dec. 6, 2018 – Hunt Capital Partners, in conjunction with Pennrose, announced today the closing of $9.3 million in federal low-income housing tax credit (LIHTC) equity financing for the new construction of the Village at Nauset Green in Massachusetts. Located in the Town of Eastham on Cape Cod, the mixed-use development will provide 65 units spread across 18 garden-style townhomes. The groundbreaking will take place Dec. 7, 2018, and once construction is completed, the Village at Nauset Green will offer 39 LIHTC, eight Section 8, three Section 811 and 15 workforce units.
The Cape Cod region has an affordable rental housing gap of 4,441 units, according to the Cape Cod Commission as reported in Housing on Cape Cod: The High Cost of Doing Nothing. The Town of Eastham has the lowest percentage of affordable housing on Cape Cod. Bringing affordable housing to this location through the development of the Village at Nauset Green will have a tangible impact on the extremely low-income, low-income and workforce families in the community.
“Hunt Capital Partners is proud to work with Pennrose as well as our investor, JPMorgan Chase, to address the affordable housing gap on Cape Cod with the development of the Village at Nauset Green,” said Hunt Capital Partners Executive Managing Director Dana Mayo.
When finished in January 2020, the Village at Nauset Green will offer a full complement of unit amenities as well as a community clubhouse, playground and on-site management. The LIHTC units will be restricted to 60 percent of the area median income (AMI) while both the Section 8 and Section 811 units will be restricted to 30 percent AMI.
The total development cost for the Village at Nauset Green is $23 million. Hunt Capital Partners facilitated the investment of federal tax credit equity by JPMorgan Chase through its proprietary fund, Hunt Capital Partners Tax Credit Fund 26. Additionally, $4.4 million in state LIHTCs were awarded to the development as well as strong financial support from both the state and local community. The lenders are as follows:
- Bank of America – $10,115,000 Construction Loan
- Massachusetts Housing Partnership – $4,400,000 Permanent Loan
- DHCD HOME Loan – $550,000
- The Town of Eastham Infrastructure Loan – $400,000
- The Town of Eastham CPC Loan – $750,000
- The Town of Eastham AHTF Loan – $300,000
- Affordable Housing Trust Fund Loan – $1,000,000
- Housing Stabilization Fund Loan – $1,000,000
- Massachusetts Housing Finance Agency Workforce Housing Loan – $1,500,000
- Town of Wellfleet Loan – $100,000
- Town of Orleans Loan – $100,000
- State Tax Credit Loan – $3,500,000
Spearheading the development is Pennrose. NEI General Contracting Inc. is the general contractor, The Architectural Team is the project architect, and Pennrose Management Company is the property manager.
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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