Red Capital Markets LLC, the investment banking arm of capital provider Red Capital Group, has structured bond financings for two adjacent affordable housing projects in Columbus, Ohio. One of the projects is a 35-unit senior community to be built through the HUD Section 202 program, which provides rental housing for persons age 62 and older who have incomes under 50% of the area median income. The second project to be built is a 63-unit, garden-style affordable apartment community. Together the projects will be known as Elim Manor.
The garden-style apartment component is financed with $2.5 million in FHA Section 231 and Ginnie Mae-collateralized new issue bond program tax-exempt bond proceeds; $700,000 in additional tax-exempt bonds; $2.28 million in Columbus Metropolitan Housing Authority equity funds; $1.08 million in Low Income Housing Tax Credit proceeds and $650,000 in construction financing from the Affordable Housing Trust for Columbus and Franklin County.
The Section 202 component of Elim Manor is financed with $3.8 million in Section 202 grant proceeds; $3.3 million in tax-exempt bond proceeds; nearly $1.5 million in Low Income Housing Tax Credit proceeds and $785,000 in construction financing from the Affordable Housing Trust. Tax credits for both properties were placed by the Ohio Capital Corporation for Housing.
The garden-style apartment portion of the project is co-owned and sponsored by the Columbus Housing Partnership and the Columbus Metropolitan Housing Authority. All 63 units within the single two-story and four single-story cottage buildings receive project-based Section 8 vouchers from Columbus Metropolitan Housing Authority.
The Section 202 component also is owned and sponsored by Columbus Housing Partnership and will receive project rental assistance contracts in conjunction with the Section 202 grant. Both projects serve senior households ages 62 and older and will share amenities including a fitness center, community space, and picnic area. The sites are approximately six miles southeast of the Columbus central business district.
“The multiple HUD, tax credit, bond and other program requirements resulted in a development with a very complicated financial and legal structure,” says Amy Klaben, president and CEO of the Columbus Housing Partnership. “The folks at Red Capital were an integral part of the team we assembled to take on the unique challenges of a deal with this complexity. At the end of the day, we are all proud of the teamwork and effort that went into developing 98 new, high-quality affordable rental opportunities for seniors in our community.”
Columbus Housing Partnership (CHP) is a private, nonprofit organization founded in the belief that a decent and affordable home is the cornerstone of family life and a healthy community. Columbus Housing Partnership takes an innovative approach to addressing the housing needs of central Ohio.
CHP provides quality, affordable housing and related services to low- and moderate-income households through four programs: Homeport Rental Living, Homeport Community Life, Homeport Housing Advisory Center and Homeport Home Ownership.
Red Capital Group is headquartered in Columbus, Ohio and employs more than 200 people and maintains nine offices nationwide.