Hunt Capital Partners and UHC Bring More Affordable Housing to Silicon Valley
LOS ANGELES, Sept. 18, 2018– Hunt Capital Partners has announced the closing of $8.4 million in low-income housing tax credit (LIHTC) and solar credit equity financing for the new construction of Crossings at Monterey in Morgan Hill, Calif. Developed by Urban Housing Communities, LLC (UHC), Crossings at Monterey will offer a total of 39 affordable housing units for low-income families who live in the southern region of Silicon Valley within the San Francisco Bay Area. Crossings at Monterey is the eighth development that Hunt Capital Partners and UHC have collaborated on.
Home to nearly 45,000 residents, Morgan Hill is primarily an affluent residential community for Silicon Valley, as well as the seat for several major tech enterprises. The city was ranked the 17th most expensive housing market in the United States in Coldwell Banker’s 2014 Home Listing Report. Crossings at Monterey will provide more affordable housing options for low-income residents. Because of the development’s prime location in the Monterey Highway/W Dunne Avenue neighborhood, tenants will have easy access to retail stores, recreation facilities and public transportation.
“The new construction of Crossings at Monterey is an important step towards building more sustainable affordable housing in Silicon Valley,” said Hunt Capital Partners Executive Managing Director Dana Mayo. “We are glad to partner with UHC once again to deliver more affordable housing that will greatly improve the quality of life for many families.”
Construction began in September 2018 and is scheduled for completion by the fourth quarter of 2019. When finished, Crossings at Monterey will offer 20 LIHTC units restricted to households earning 30 and 40 percent of the area median income that will benefit from a 20-year Section 8 Project based Voucher subsidy where tenants will pay 30 percent of their income towards rent. These 20 units will be leased to households referred through Santa Clara County’s Chronically Homeless Direct Referral program. The other 18 units will also be LIHTC restricted to households earning 50 and 60 percent AMI.
Crossings at Monterey will feature a mix of one- two- and three-bedroom apartments equipped with modern amenities, including Energy Star rated appliances. Other energy efficient systems, such as solar photovoltaic energy and solar thermal heating, will be utilized throughout the property to reduce energy usage and costs. Tenants will also have access to community amenities such as a full kitchen, lounge area, TV room, computer room and onsite laundry.
The total development cost for Crossings at Monterey is $21.7 million. Hunt Capital Partners facilitated the investment of federal tax credit and solar credit equity through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 27. Other lending partners include Citibank, who provided a $14 million construction loan as well as an $8.7 million permanent loan. The City of Morgan Hill provided a $750,000 construction to permanent loan, and the County of Santa Clara provided a $3.4 million construction to permanent loan.
In addition to UHC, the development team comprises SBI Builders Inc. as general contractor and Hyder Property Management Professionals as the proposed management agent for the development.
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 $1.5 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 investors 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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