Tax-Exempt and Taxable Loans Finance Significant Portion of Construction Costs for Permanent Supportive and Transitional Housing Units
Greystone affiliate, America First Multifamily Investors L.P. (NASDAQ: ATAX) (“ATAX”), today announced that it has provided more than $33 million in tax-exempt and taxable construction loans for the $45.7 million construction of a 67-unit permanent housing building and a 21-unit transitional housing building in Los Angeles. Frank Bravo, Managing Director at ATAX, originated the transaction.
The planned properties, known as Hope on Avalon, will provide housing to 66 homeless individuals seeking permanent supportive housing in a five-story building, with the goal of transitioning to self-sufficiency. An additional two-story transitional housing building will include 21 larger units that will accommodate up to 80 chronically homeless individuals.
Co-developers LSA Capital, Inc., and Aedis Real Estate Group will benefit from the ATAX construction financing with a 24-month term and additional equity from RBC Community Investments, LLC, a low-income housing tax credit investor. Freddie Mac is providing the permanent financing through Tax-Exempt Loans (TELs) as part of its affordable housing platform.
“Homelessness is an ever-growing challenge throughout the U.S., and Los Angeles County in particular has seen a 68 percent increase in the homeless population since 2013. This transaction with LSA and Aedis will help provide critical housing to those who need it most,” said Bravo. “With Greystone’s expertise in the affordable housing space, ATAX can find solutions that meet the needs of both our clients and communities.”
Ken Rogozinski, CEO of ATAX added, “This unique transaction that addresses such a critical community need in Los Angeles shows ATAX’s commitment to generating social good through our investment activities.”
The development is supported by social services contracts provided by the Los Angeles Department of Health Services’ Flexible Subsidy Pool. The department’s program administrator, Brilliant Corners, will provide long-term operating subsidies for both the permanent and transitional units. The buildings, developed using modular construction that provides cost savings and timeline efficiencies, will be located within South-Central Los Angeles.
“It is a basic human need to have a safe and secure home,” said Scott Baldridge, owner of Aedis Real Estate Group. “Through Hope on Avalon and our relationships with LSA and ATAX, we can develop multi-family supportive housing that promotes community integration, greater independence, and well-being for people transitioning from homelessness.”
Greystone is the #1 provider of HUD-insured commercial loans, a top provider of Fannie Mae and Freddie Mac affordable housing loans. In 2019, Greystone, together with its affiliates, acquired the parent of the General Partner of America First Multifamily Investors, L.P., which manages over $1 billion in assets consisting primarily of mortgage revenue bonds intended for multifamily affordable housing construction and permanent financing.