Hunt Capital Partners and Union Gospel Mission Close on Supportive Housing Development in Texas
LOS ANGELES, Oct. 4, 2018 – Hunt Capital Partners, in partnership with the Union Gospel Mission of Tarrant County (UGM), has announced the closing of $11.9 million in low-income housing tax credit (LIHTC) equity financing for the new construction of The Vineyard on Lancaster Apartments. Designed to serve as a supportive housing development, The Vineyard on Lancaster will provide 104 units, comprising 98 LIHTC units and six unrestricted units, as well as commercial space for a medical clinic. The development will be located in the Near East neighborhood of Fort Worth, Texas, amidst UGM’s campus.
Founded in 1888, the Union Gospel Mission of Tarrant County is a Christian nonprofit organization whose mission is to provide food, shelter and supportive services to homeless and formerly homeless individuals in the community. With its existing campus, UGM provides more than 400 units of emergency shelter, programmatic housing, and transitional housing for the homeless in Tarrant County. The construction of The Vineyard on Lancaster Apartments fulfills a long-awaited strategic plan for UGM, serving as the final component for the existing housing continuum and possible destination for individuals and families that graduate from the supportive service program.
“We are proud to partner with the Union Gospel Mission on The Vineyard on Lancaster, which is their first LIHTC development,” said Hunt Capital Partners Executive Managing Director Dana Mayo. “Our investment in this development helps UGM to be able to continue its admirable work in the Tarrant County community, helping formerly homeless and low-income families have access to the affordable housing and resources they need to succeed.”
The Vineyard on Lancaster is currently under construction and is expected to be completed by late 2019. While open to the general population, the target population for The Vineyard on Lancaster is supportive housing. Additionally, the development will set aside six units for those with Special Needs, including persons with alcohol and/or drug addictions, disabilities, HIV/AIDS, homeless populations, veterans, wounded warriors, farmworkers and victims of domestic violence.
Once constructed, The Vineyard on Lancaster will feature two five-story elevator-serviced buildings. The first building will include a first-floor commercial space, housing a medical clinic run by UGM, along with retail space. The second building will include a parking garage and laundry facilities as well as a management office. The Vineyard on Lancaster will offer 82 one-bedroom and 16 two-bedroom apartments for families earning 30, 50 and 60 percent of the area median income; six one-bedroom market rate apartments will also be available. Out of the 98 LIHTC units, 34 units will benefit from a 20-year Project Based Voucher HAP contract provided by Fort Worth Housing Solutions, and 10 of the LIHTC units will benefit from Project Based Rental Assistance through a Section 811 subsidy contract.
The total development cost for The Vineyard on Lancaster Apartments is $19.76 million. Hunt Capital Partners facilitated the investment of federal tax credit equity by JP Morgan Chase through its proprietary fund, Hunt Capital Partners Tax Credit Fund 26. Other lending partners include Wells Fargo who provided a $10 million construction loan. The Texas Department of Housing and Community Affairs provided a $1.1 million construction to permanent loan, and UGM provided a $5.98 million construction to permanent loan. UGM is the general partner, developer, guarantor, lender and ground lessor for The Vineyard on Lancaster. Fort Construction is the prime subcontractor, Hanson Schwarz is the architect, and Alpha Barnes 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, History 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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