BILOXI, Miss., Dec. 20, 2023 – Hunt Capital Partners (HCP) has transferred ownership of Cadet Point Senior Village (Cadet Point) back to Biloxi Community Development Corporation (BCDC), the nonprofit arm of the Biloxi Housing Authority (BHA). Located in Biloxi, Mississippi, Cadet Point is a 76-unit midrise apartment complex that has provided affordable housing to elderly, low-income households since 2007. HCP facilitated the assignment of the investor member interest to BCDC at a mutually agreeable price that allowed BCDC to focus its resources on the preservation of the affordable housing units. Through the transaction, which closed late November, BCDC expects to more efficiently manage Cadet Point to ensure its long-term affordability and operation.

Leading up to the agreement, HCP and BHA worked collaboratively to find a mutually satisfactory path forward amid acute operational expense challenges that the property faced. Cadet Point is located in an area severely impacted by hurricanes. Similar to many multifamily properties located in coastal regions, Cadet Point has experienced historic insurance premium increases. For reference, an NDP Analytics October 2023 survey found that for 2022-2023 renewals, 29% of housing providers incurred premium increases of 25% percent or greater, compared to 17% the previous year. Cadet Point’s insurance premiums have escalated by more than 65% over the last five years. During that time, BCDC worked diligently and at its own expense to deal with the rising insurance rates in the face of limited revenue streams.

As rents for Cadet Point are restricted to income levels to maintain affordability for low-income seniors, the revenue generated in recent years has not been able to keep pace with the drastic increases in insurance costs. Assigning the investor member interests to BCDC provides BCDC full control of the development and its operational decisions.

“We are committed to the success of all of our partners and to the wellbeing of the tenants,” said HCP President Jeff Weiss. “In the case of Cadet Point Senior Village, transferring ownership to the Biloxi Housing Authority enables it, through BCDC, to make property decisions most optimal for the operation of property and its residents.”

In agreeing to this negotiated exit, the Investor Limited Partner facilitated the assignment of the investor member interest without requiring BCDC to go through the formal right of first refusal process. 

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. An investment in affordable housing not only improves the living conditions of its residents, but it also helps to remove obstacles that stand in the way of creating a healthy, safe and stable home environment for low-income families and seniors. When families spend less on housing related expenses, they have more resources available for other essentials such as food and clothing, or even extracurricular activities and educational programs. One of the most significant benefits to 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.