Bellwether Enterprise Real Estate Capital LLC (Bellwether Enterprise), the commercial and multifamily mortgage banking subsidiary of Enterprise Community Investment Inc. (Enterprise), announced the lending of $130 million for 13 affordable housing loans in June. Two of these spotlight deals include:
Spruce Hill, an $11,000,000 acquisition loan in Asheville, North Carolina. With the Federal Housing Administration’s LIHTC pilot program that protects lenders from loss on defaults and a low interest rate secured for the next 35 years, Bellwether Enterprise provided the debt to support a construction budget for renovations.
Although property’s existing subsidy program was expiring, loan originator Victor Agusta, senior vice president in Bellwether Enterprise’s Raleigh office, arranged the refinancing using a tax exempt bond and 4 percent Low Income Housing Tax Credits from the North Carolina Housing Finance Agency. As Asheville continues to face a shortage in the supply of housing for low income families, this loan will keep 174 affordable units available in the city.
Freedom Hills Ranch Apartments, a $20,150,000 permanent financing loan in San Antonio, Texas. Freedom Hills Ranch Apartments is a proposed three-story, garden style apartment community with one, two and three bedroom units, 252 of which are reserved affordable. The complex also includes a community clubhouse, sports facilities, playground, resource center, and on-site laundry facilities. Galaxy Builders has begun construction on the property and is expected to be completed by summer of 2017.
Bellwether Enterprise loan originators Phil Melton, executive vice president in Dallas, and Cindy Hannon, senior vice president in Duluth, provided the borrower, Hogan Property Company, with an insured loan from the U.S. Department of Housing and Urban Development under the construction program for tax exempt bonds. For the property to receive 4 percent tax credits, the Texas Department of Housing and Community Affairs required rents to be limited to 50 percent and 60 percent area median income.
“Asheville and San Antonio, like many other cities across the country, are facing a shortage in the supply of affordable housing that is leaving many residents struggling to make ends meet,” said Ned Huffman, president of Bellwether Enterprise. “Bellwether Enterprise is proud to help finance projects that build more vibrant communities and keep housing within families’ reach.”
The U.S. is in the midst of a broad housing insecurity crisis that is affecting nearly 19 million low-income families who are homeless or paying more than half of their monthly income on housing. Enterprise’s generational goal is to end housing insecurity, which means no more homelessness and no more families paying more than half of their income on housing. As part of the Enterprise family of companies, Bellwether Enterprise is committed to tapping its experience and nationwide network to help achieve this goal. For more information on Bellwether Enterprise’s services, visit us at: www.BellwetherEnterprise.com.
