Hunt Capital Partners Brings Affordable Housing to Pawcatuck, Connecticut
LOS ANGELES, March 8, 2018 – Hunt Capital Partners announced it has provided $10.05 million in low-income housing tax credit (LIHTC) equity financing for the construction of Spruce Ridge in Pawcatuck, Conn. Spearheaded by NeighborWorks New Horizons of New Haven, Conn., Spruce Ridge is a LIHTC and workforce development that will provide 86 housing units for families.
Pawcatuck is home to over 5,000 residents, many of which are experiencing rent burden. The median income of the area in 2016 was $67,670, according to a 2017 market study by Novogradac & Company LLP. However, 43 percent of households in the area earned well below that number, making less than $40,000. While there is a need for affordable housing in Pawcatuck, there are very few options in the area. Spruce Ridge is a significant development as it will bring much needed affordable housing to low-income families to the region.
“Developing Spruce Ridge is an important step toward reducing the number of rent burdened households in Pawcatuck,” said Hunt Capital Partners Executive Managing Director Dana Mayo. “The dedication of NeighborWorks New Horizons for Spruce Ridge has been exceptional. The Hunt Capital Partners team looks forward to collaborating with the NeighborWorks family of non-profit developers and housing sponsors on more affordable housing opportunities in the future.”
Construction for the development occurred in two phases. The first tranche involved the construction of 43 units located at 100 Broad South Street. These units were completed in April 2017 and are fully occupied. Construction for phase two, the final 43 units located at 86-88 South Broad Street, began in January 2018.
Upon completion in December 2018, Spruce Ridge will provide four, garden style residential buildings containing 86 units, including two units for employee housing. There will be 67 LIHTC units restricted to households earning up to 60 percent of the area median income (AMI). Seventeen units will be allocated for workforce housing for families earning up to120 percent AMI.
The rents for Spruce Ridge will be substantially lower than those at comparable multifamily communities in the Pawcatuck area. Spruce Ridge’s LIHTC apartments are priced between 12 percent and 77 percent below the average competing rents surveyed in Novogradac’s study. Likewise, the workforce units are priced between 12 percent and 14 percent below the average surveyed competing rents. The discount makes the units even more accessible to families who need it most in Pawcatuck.
The apartments at Spruce Ridge will be furnished with the highest level of community amenities and unit features. All buildings will be fully sprinklered, and each will have an elevator. Every apartment will have a refrigerator, range/oven, dishwasher, washer and dryer, window treatments, and central heating and cooling. Flooring inside the units will be engineered wood. Tenants will be able to enjoy a fitness center, two playgrounds and two community rooms with full kitchens. There will be approximately 158 onsite surface parking spaces for residents as well as tenant storage areas. Residents will also have access to a services coordinator at no additional charge. The coordinator will provide assistance, mentorship and program referrals to residents for activities such as beginning or returning to school, major purchases, obtaining employment, and career development.
The total development cost for Spruce Ridge is $23.86 million. Hunt Capital Partners facilitated the investment of federal LIHTCs, awarded by the Connecticut Housing Finance Authority, through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 24. NeighborWorks New Horizons is the developer, managing member and property manager. Its national affiliate, NeighborWorks Capital Corporation, also provided construction financing for the development, showcasing a noteworthy level of commitment to bringing affordable housing to Southern Connecticut. Four Seasons Construction, LLC of Centerbrook, Conn. is the general contractor. Bernard J. Lombardi of Hamden, Conn. is the architect.