LOS ANGELES, Sept. 26, 2019 – Hunt Capital Partners announced the closing of $16.65 million in federal and state low-income housing tax credit equity financing for Yates Village Phase I. The project is the substantial rehabilitation, selective demolition, and new construction of a portion of the existing Yates Village public housing site in Schenectady, New York.
Yates Village Phase I is the first of a multi-phase plan to redevelop the original public housing site built in 1948. Phase I will convert 71 existing units across two buildings into 89 units across 10 buildings. It will include the construction of a two-story, 12,000 square foot community facility, in which 9,750 square feet will be commercial space leased to organizations such as The Boys and Girls Club, Schenectady Community Action Program’s Head Start program, and the Bethesda House.
“Yates Village Phase I is a unique transaction that transforms the public housing site into a mixed-income housing development that accommodates low-income families, workforce families and families with disabilities,” said Hunt Capital Partners’ Executive Managing Director Dana Mayo.
Eighteen units will have a leasing preference for households with at least one family member who has a physical disability. Priority will be given to individuals who have served in the armed forces of the United States for a period of at least six months. The developers have partnered with the Schenectady Community Action Program (SCAP) as the supportive service agency to provide resources to residents. SCAP will provide medical, mental health, substance abuse and other treatment assistance. The organization will also provide employment services including skill assessment, career readiness training, career counseling, job placement support, goal planning, educational training, and emergency services through the Schenectady Community Crisis Network.
Mobilization and site prep began in August 2019. Construction is scheduled for completion in November 2020. When finished, the 74 LIHTC units will feature new flooring, Energy Star appliances, and central air conditioning and heating. The LIHTC units will be set aside for households earning up to 30, 50, and 60 percent of the area median income (AMI). There will also be 15 New York State LIHTC workforce units restricted to households earning up to 80 percent of the AMI. The 39 units set aside at 30 percent AMI and the 18 units set aside at 50 percent AMI will benefit from a 20-year Project-Based Rental Assistance HAP Contract provided by the Schenectady Municipal Housing Authority. The 15 units set aside at 80 percent AMI will be financed by New York State LIHTCs.
The total development cost for Yates Village Phase I is $29.71 million. Hunt Capital Partners facilitated the investment of the 9% federal LIHTCs as well as the state LIHTCs through its proprietary fund with JPMorgan Chase, referred to as Hunt Capital Partners Tax Credit Fund 26. Chase Bank provided an $11.69 million construction loan. Hunt Real Estate Capital provided a $6.12 million permanent loan through Freddie Mac. New York Department of Homes and Community Renewal provided a $3.79 permanent loan and a $1.37 million permanent loan. Schenectady Municipal Housing Authority provided a $647,000 soft seller-financing note.
Yates Village Phase I is co-sponsored by the Municipal Housing Authority of the City of Schenectady, who will serve as ground lessor, co-property manager, member of the general partner and developer entities, and guarantor. Pennrose, LLC and Duvernay+Brooks, LLC will be co-sponsors, co-developers and guarantors, with Pennrose Management Company serving as the management agent.
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 $1.9 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.