HOUSTON, Oct. 15, 2020 – Hunt Capital Partners and Avenue Community Development Corporation (Avenue CDC) announced the closing of $3 million in federal low-income housing tax credit (LIHTC) equity financing for the new construction of Avenue on 34th Apartments in Houston. This mixed-income development will offer 70 apartments, comprising 14 market-rate and 56 LIHTC units.
Houston is rebuilding from the catastrophic Hurricane Harvey, which dropped over 50 inches of rain in the area in 2017 and caused $125 billion in damage. The City of Houston Housing and Community Development Department reported that 208,532 households sustained some form of damage to their home or personal property. About half of the affected households are low- and moderate-income. Avenue on 34th is an important development that helps increase the affordable housing stock in the region following the hurricane.
“Developers like Avenue CDC are playing an instrumental role in the recovery and revitalization of Houston,” said Hunt Capital Partners Executive Managing Director Dana Mayo. “We are proud to aid Avenue CDC in this effort and invest in Avenue on 34th Apartments. We are pleased to leverage tax credits and Community Development Block Grants – Disaster Recovery assistance to finance this deal.”
A nonprofit 501(c)3 organization, Avenue CDC develops affordable housing, provides homebuyer as well as financial educational services, and has recently focused on serving the northside communities in the Greater Houston area. For Avenue on 34th, Avenue CDC is the developer, guarantor and sponsor. Its development team includes Block Builders LLC as general contractor, Northfield Design Associates Inc. as project architect, and Orion Real Estate Services of Texas Inc. as the management agent.
Avenue on 34th is under construction and scheduled for completion in November 2021. When finished, the development will offer 18 one-bedroom, 22 two-bedroom, and 16 three-bedroom units restricted to families earning up to 30, 50, 60 and 80 percent of the area median income. There will also be five one-bedroom, five two-bedroom, and four three-bedroom unrestricted units. Apartments will include modern amenities and features. Residents will have access to a business center, clubhouse, elevators, an exercise facility, on-site management, a central laundry facility, and a swimming pool. Avenue CDC will also provide supportive services including children’s after school program, exercise classes, annual health fairs, arts and crafts classes, and bi-monthly on-site social events.
The total development cost for Avenue on 34th is $18.3 million. Hunt Capital Partners facilitated the federal tax credits through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 37, LP. Zions Bancorporation, N.A. dba Amegy Bank provided a $9 million tax-exempt construction bond loan and a $5.76 million permanent loan commitment. Avenue CDC via the City of Houston provided $9.09 million in Community Development Block Grants – Disaster Recovery funds.
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.