Fort Worth, Texas, Oct. 29, 2020—Hunt Capital Partners, in collaboration with Envolve Community Management LLC, announced the closing of $5.2 million in federal low-income housing tax credit (LIHTC) equity financing for the acquisition and rehabilitation of Shady Oaks Manor. Located in Fort Worth, Texas, Shady Oaks Manor is an existing LIHTC development, offering 138 affordable housing units to seniors aged 62 years and older. Additionally, all units will benefit from a Section 8 project-based Housing Assistance Payments rental subsidy.
Originally constructed in 1979, Shady Oaks Manor was rehabilitated in 2002 utilizing tax-exempt bonds and low-income housing tax credits. The 2020 rehabilitation will involve updating the interiors and exteriors of all 27 existing one-story garden-style buildings, as well as the on-site management office and community building. New community amenities will be constructed such as a gazebo, picnic table, horseshoe pit and charcoal barbeque grill. As a tenant-in-place rehab, residents will receive full notice of the scheduled rehabilitation work planned for their unit, including a daily schedule to inform the resident which days they will need to make their unit available during the day. No tenants will need to be permanently relocated during the construction process.
“Closing a tenant-in-place rehab deal for a 138-unit development during COVID-19 requires strategic planning,” said Hunt Capital Partners’ Executive Managing Director Dana Mayo. “On the financing side, we included more sensitivities to account for construction delays and material costs. Envolve Community Management has been a great partner and has worked closely with the general contractor to ensure best practices, including daily cleaning procedures, were in place for heightened safety for both staff and tenants.”
Envolve Community Management is both the developer and management agent. Whitestone Construction Group LLC is the general contractor. Dyke Nelson Architecture LLC is the project architect. Construction is underway and scheduled for completion in October 2021.
Once completed, Shady Oaks Manor will provide 130 one-bedroom and eight two-bedroom units with modern amenities for seniors earning up to 50 percent of the area median income. The unit mix also includes seven fully accessible ADA units and three accessible units for individuals with visual and hearing impairments. The development will also benefit from supportive services, accessible to all residents free of charge. Support services may include transportation, English as a second language courses, financial literacy classes, health education, food pantry, annual health fair, weekly exercise classes, and more.
The total development cost for Shady Oaks Manor is $22.6 million. Hunt Capital Partners facilitated the investment of federal LIHTCs through multi-investor funds, Hunt Capital Partners Tax Credit Fund 37, and Hunt Capital Partners Tax Credit Fund 41. Bellwether Enterprise Real Estate Capital LLC provided a $13.05 million construction to permanent bond loan, and Envolve Community Management provided $3.4 million in seller financing.
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 $2.2 billion in tax credit equity in over 40 proprietary and multi-investor funds. HCP manages almost 800 project partnerships representing over 80,000 homes in 51 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.