LOS ANGELES, June 25, 2019– Hunt Capital Partners provided $10.78 million in low-income housing tax credit (LIHTC) equity financing for the acquisition and rehabilitation of the Texarkana RAD II, which comprises five development sites and 294 total units across Texarkana, Texas. Through the Rental Assistance Demonstration (RAD) program, Texarkana RAD II will utilize Section 8 Project Based Rental Assistance for 274 units, and it will also receive Section 8 Based Vouchers for 20 units. As a result, the project will convert from a traditional public housing development to a long-term project-based Section 8 development.
Texarkana RAD II is divided into five Housing Authority of Texarkana Texas (HATT) development sites, each with its own distinct tax credit allocation. They consist of Robison Terrance, Bright Street, Hampton Homes, Williams Homes and a scattered development site. Renovations to all five developments will begin in June 2019 and will be completed by November 2020. CVR Associates will spearhead relocation for residents; approximately 20 to 50 households will be relocated to other HATT properties (or third-party market units as necessary) at a time.
“RAD is one of Hunt Capital Partners’ key expertise areas so partnering with the Texarkana Public Facility Corporation on Texarkana RAD II was a natural fit,” said Hunt Capital Partners Executive Managing Director Dana Mayo. “We also thank our partner, JPMorgan Chase, whose investment helps to ensure the longevity of multiple affordable housing properties in Texarkana.”
Robison Terrace features 130 units in a 10-story elevator serviced high-rise building. Bright Street offers 10 single-story duplex buildings with 20 units. Hampton Homes provides a 50-unit development spread across 25 single-story duplex buildings. Williams Homes consists of 52 units in 26 single-story duplex buildings. The HATT scattered sites development includes 42 units in 21 single-story duplex buildings located on four noncontiguous sites scattered within a three-mile radius. Robison Terrace, Williams Homes, and the HATT scattered sites are all designated as elderly preference developments for residents 55 and older. Additionally, at each development location, five percent of the units will be designed for the mobility impaired and two percent will be configured for hearing and vision impaired residents.
The total development cost for Texarkana RAD II is $34.68 million. Hunt Capital Partners will facilitate the investment of federal tax credit equity by JPMorgan Chase through its proprietary fund, Hunt Capital Partners Tax Credit Fund 30. Citibank provided a $17.81 million hard construction loan, along with an $11 million permanent loan through Freddie Mac. The Housing Authority of the City of Texarkana Texas provided a $7.6 million soft seller takeback note, and a $3.42 million soft construction to permanent loan through its instrumentality, the Texarkana Public Facility Corporation.
The Texarkana Public Facility Corporation is the general partner, guarantor, developer and general contractor for the project. Cordova Construction Company, Inc. is the prime subcontractor. Boulevard Group Inc. in the development consultant. Cameron Alread, Architect, Inc. is the project architect. LEDIC Management Group, LLC is the property manager.
About Hunt Capital Partners
Hunt Capital Partners (HCP) is the syndication division of Hunt Companies, Inc. (Hunt). HCP specializes in the syndication of Federal and State Low-Income Housing, Historic and Solar Tax Credits. Since the successful launch of its first fund in the fall of 2011, HCP has raised over $1.7 billion in tax credit equity. 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, mortgage banking, direct lending, loan servicing, asset management, property management, development, construction, consulting and advisory. For more information on Hunt Capital Partners, please visit www.huntcapitalpartners.com, or for Hunt Companies, please visit www.huntcompanies.com.