LOS ANGELES, Dec. 17, 2018 – Hunt Capital Partners has announced the financial closing of $8.8 million in federal low-income housing tax credit (LIHTC) and federal solar tax credit equity for the new construction of the Dat-naa-svt development by the Tolowa Dee-ni’ Nation in Smith River, Calif. This will be Hunt Capital Partners’ tenth LIHTC investment in Indian Country.
Structuring LIHTC investments on tribal reservations is a specialty as the investments are structured to respect the sovereign immunity rights of the tribe. Nevertheless, there is a tremendous need for affordable housing among the Native American population. According to a report by the U.S. Department of Housing and Urban Development, 68,000 new units would need to be constructed to eliminate overcrowding and replace inadequate units on tribal reservations. It is not uncommon for three or more generations to live in a two-bedroom home that lacks modern amenities. In addition, the Native American Aid organization found in 2015 that waitlists for tribal housing are often three years or more.
Dat-naa-svt will provide 21 low-income rental housing units with scenic Pacific Ocean views, located on the Tolowa Dee-ni’ Nation Reservation between Highway 101 and Ocean View Drive. When completed by June 2020, the development will include one-, two-, three- and four-bedroom single-family houses set aside for families earning up to 30, 40, 50, and 60 percent of the area median income. The development will also include picnic areas as well as a playground, community building and business center for tenants.
“We are glad to partner with the Tolowa Dee-ni’ Nation on their first LIHTC deal,” said Hunt Capital Partners’ Executive Managing Director Dana Mayo. “Bringing affordable housing to underserved populations is very important to us, and we look forward to seeing how Dat-naa-svt will positively impact this community.”
The new development will also feature supportive services for tenants to help residents access education, secure employment, secure benefits, gain skills and improve health and wellness. They will be provided by the Tolowa Dee-ni’ Nation’s Department of Community & Family Services. Additionally, classes will be held to aid with financial literacy, computer training, home-buying, GED acquisition, resume building, nutrition, art, parenting, on-site food cultivation and smoking cessation.
The total development cost are $12.94 million. Hunt Capital Partners plans to facilitate the investment of federal tax credit and solar tax credit equity through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 31. The Tolowa Dee-ni’ Nation is the sponsor, general contractor, developer and management agent for the project. Travois is the architect. The Tolowa Dee-ni’ Nation also provided $4.05 million in construction to permanent financing.
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 $1.4 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 investees 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.