$71.16 Million Funding Stack Comprised of 4% Low-Income Housing Tax Credits (LIHTC) and FHA 221(d)4/ Tax-Exempt Bonds
Press Release – updated: Sep 3, 2020 06:00 EDT
SPRINGFIELD, Pa., September 3, 2020 (Newswire.com) – InnoVative Capital, LLC acted as Municipal Advisor to the Tulsa Housing Authority (THA) in the RAD conversion and financing of major renovations and modernization of two federally owned, low-income housing properties, Apache Manor Apartments and Sandy Park Apartments. Under the U.S. Department of Housing and Urban Development’s Rental Assistance Demonstration Program, concurrent with the financings, the two properties have converted to the ownership of the THA, in order to facilitate the incurrence of debt and equity investments to fund capital improvements.
The Apache Manor and Sandy Park Projects are funded with the combination of two FHA 221 (d)4 GNMA collateralized insured mortgage loans underwritten by Prudential Huntoon Paige, 4% Low-Income Tax Credits syndicated through Boston Capital, seller loans, deferred developer fees and THA invested reserves. Additional funding was provided through the sale of collateralized tax-exempt revenue bonds by Raymond James issued through the Oklahoma Housing Finance Agency.
“Despite the obstacles imposed by a global pandemic, the dual-property Apache/Sandy financing elicited strong investor demand, which resulted in very favorable FHA loan terms, an attractive pricing of low-income housing tax credits and record-low municipal bond rates. Lenders and investors appreciated the quality of the properties, as well as the expertise and standard of care that the THA brings to the projects as the developer,” said Alan Richman president & CEO of InnoVative Capital.
“RAD represents the future for not only THA but all PHAs. As we pursue the preservation of our properties through RAD, we are grateful for partners like InnoVative Capital for making projects like the rehabilitation of our Sandy Park and Apache Manor communities come to fruition, even in these very challenging times,” said Aaron Darden, president and CEO of THA.
HUD Rental Assistance Demonstration Property Conversions
Tulsa Housing Endeavors I, LP is the Borrower for the Apache Manor Project and Sandy Park Project and will receive Section 8 PBV Housing Assistance Contracts through the RAD program, covering all 318 units at the two projects. The RAD HAP contracts will be in place for 20 years from the date of the RAD conversion.
Apache Manor and Sandy Park Apartments
Apache Manor and Sandy Park Apartments are two multifamily housing properties with a combined 318- multifamily housing units serving families in Tulsa, Oklahoma. The two properties house units ranging from one-bedroom to five-bedrooms, within 29 single-story and 37 two-story buildings on an aggregate 37 acres in downtown Tulsa. The THA’s modernization project will include new interior systems, finishes and appliances, selective interior demolition, landscaping, and exterior appointments.
About the Tulsa Housing Authority
THA has been serving the community since 1967, providing affordable housing solutions for Tulsa’s most vulnerable populations. THA is governed by a five-member Board of Commissioners which establishes policies, approves budgets and provides general direction to the THA President & Chief Executive Officer and executive staff. THA provides publicly assisted housing comprised of traditional public housing, mixed-finance sites, and housing vouchers. THA provides assistance to more than 20,000 individuals or 7,200 families. THA owns and manages 13 communities, four Section 8 Project-Based Rental Assistance communities, and manages the Housing Choice Voucher program. THA serves more than 20,000 Tulsans, providing affordable housing in tandem with supportive services to help all Tulsans thrive. THA is creating a better Tulsa by transforming lives and communities.
About InnoVative Capital LLC
Founded in 2000, InnoVative Capital is a financial advisor and mortgage bank for public housing authorities, hospitals, municipalities, local governments, and senior living providers. As an SEC Registered Municipal Advisor, InnoVative Capital structures municipal bonds, negotiates tax credits and equity investments, and represents its clients in the execution of mortgage-backed financings incorporating HUD, USDA, Freddie Mac, Fannie Mae, and conventional bank loans. As a HUD mortgage lender and USDA banker, InnoVative Capital delivers low-cost capital to underserved and economically disadvantaged communities.
Alan P. Richman
President & CEO
Source: InnoVative Capital, LLC