DEERFIELD BEACH, Fla., Feb. 22, 2024 – In partnership with Smith & Henzy Affordable Group, Inc. and Deerfield Beach Family Empowerment, Inc. (DBFE), a nonprofit affiliate of Deerfield Beach Housing Authority (DBHA), Hunt Capital Partners (HCP) announced the closing of $16.2 million in federal low-income housing tax credits (LIHTCs) for the acquisition and rehabilitation of Palms of Deerfield Townhomes (Townhomes). Located in Deerfield Beach, Broward County, Fla., the development has served as a secure source of affordable housing for 56 low-income families earning up to 50% and 60% of the area median income (AMI). Forty-five of the households will benefit from a 20-year Section 8 Project-Based Housing Assistance Payment contract.

The project is situated within a 2023 Qualified Census Tract in an area that has experienced rising housing costs due to an influx of tourism. A 2022 Affordable Housing Assessment by Broward County reports that 94% of residents can’t afford the median sale price of a single-family home, with the median single-family home price-to-median household income ratio standing at 9.8:1. Other key findings also reveal a shift toward rental housing with a 7.2% increase in renter households and a 3.9% decrease in homeowners since 2015. Among the renter households, 51.9% are categorized as severely cost-burdened.

"We are grateful for the partnership and the opportunity to direct much-needed tax credit equity into the rehabilitation of these homes," said HCP Executive Managing Director Dana Mayo. "Our team is dedicated to preserving quality affordable housing for communities in need and we are excited for the property to offer a renewed affordable housing opportunity for families."

Townhomes is a two- and three-bedroom community comprised of 12, two-story townhouse-style residential buildings and a single-story community building/leasing center. The project will follow a rolling rehabilitation model where residents are moved into vacant units, two residential buildings at a time as renovations are made.

”We are excited to perform a much needed renovation to the property and increase the affordability for another 50 years,” said Smith & Henzy Affordable Group President Darren Smith. “This was a very complex re-syndication, but with the help of Hunt and Citi, we were able to navigate through many obstacles to make this project a reality.”

Once completed in 2025, Townhomes will feature upgraded countertops, stainless-steel appliances, bathroom vanities, as well as washing machines and dryers. Site repairs will include enhancements to the existing landscaping, new handicap accessible paths, roof replacements for all buildings, window treatments, and the replacement of all electrical fixtures. The homes will also be equipped with LED efficient lighting and Water-Sense fixtures. Residents will have access to supportive services ranging from personal development and financial workshops to nutrition and community building events provided by DBHA at no cost.

The project will be redeveloped by Smith & Henzy Affordable Group, Inc. and DBHA as co-developers. DBHA is the property manager. Affordable Group Construction LLC is the general contractor. Gallo Herbert Architects is the project architect.

“This partnership represents a significant milestone towards creating positive impact for the community,” said Deerfield Beach Housing Authority Executive Director LaTonya Coley-Mckenly. “The DBHA has been the property manager since the property was built in 2007 and has provided management services for over 55 years. We’re committed to deliver on our promise to offer sustainable and quality housing options for Deerfield Beach residents.”

Hunt Capital Partners facilitated the federal LIHTCs through its multi-investor fund. Raymond James provided a $5 million tax-exempt construction bond loan. Citi Community Bank provided a $12 million taxable construction bond loan and a $7 million tax-exempt permanent bond loan. The DBHA also provided a $14 million tax-exempt construction bond loan.

Environmental Social and Corporate Governance (“ESG”) Investing

Hunt Capital Partners recognizes that its institutional investors are seeking to increase the social value of their investments to help further their ESG initiatives. Investment in affordable housing improves the living conditions of its residents. It helps remove obstacles that impede creation of a healthy, safe, and stable home environment for low-income families and seniors' families spend less on housing-related expenses, they have more resources for other essentials such as food and clothing, extracurricular activities, and educational programs. One of the most significant benefits of providing quality affordable housing is an increase in an individual’s physical and mental health. Hunt Capital Partners’ affordable housing investments create a lasting effect on the people and communities they serve for generations to come. 

About Hunt Capital Partners

Hunt Capital Partners (HCP) is the tax credit syndication division of Hunt Companies, Inc. (Hunt). HCP specializes in the sponsorship of Federal and State Low-Income Housing, Historic, and Solar Tax Credit Investments funds. Since its inception in 2010, HCP has raised over $3.3 billion in tax credit equity in over 48 proprietary and multi-investor funds. HCP manages almost 760 project partnerships representing over 75,000 homes in 48 states and territories. 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, asset management, property management, development, construction, consulting and advisory. For more information on HCP, please visit www.huntcapitalpartners.com, or for Hunt, please visit www.huntcompanies.com.