Tax-Exempt and Taxable Bond Transaction Finances Significant Portion of Construction Costs
Greystone affiliate, America First Multifamily Investors L.P. (ATAX), has provided $22 million in tax-exempt and taxable bond financing for the $28.7 million construction of a 75-unit affordable housing property in Brawley, CA. The transaction was originated by Frank Bravo, senior vice president and originator at ATAX.
Pacific West Communities, based in Idaho, will benefit from the ATAX construction financing with a 24-month term and paydown of tax credit equity, and additional equity from a low-income housing tax credit investor. The project will be funded by $15 million in tax-exempt bonds and $7 million in taxable bonds, to be privately placed with ATAX.
The planned property, Ocotillo Springs Apartments, will provide low-income housing for residents meeting 30-60% Area Median income (AMI). The apartment complex, to be comprised of four three-story buildings, is intended to be net-zero-energy and is funded in part by a grant received from the State of California’s Greenhouse Gas Reduction Fund in 2019. The property will include a 3,000 sq. ft. community building with test kitchen, lab, playground, swimming pool, bike storage, fitness center, and BBQ areas. The Town of Brawley is located in Imperial County approximately 130 miles due East of San Diego, CA.
“Orchestrating this transaction for Pacific West Communities ensures that new affordable housing will be added to the depleted stock we have today in the U.S., and it also illustrates the importance of the 4% tax credit,” said Mr. Bravo. “In collaboration with Greystone, ATAX has created a one-of-a-kind financing product that will make these types of transactions possible.”
Greystone is the #1 provider of HUD-insured multifamily loans, a top provider of Fannie Mae and Freddie Mac affordable housing loans, and acquired the parent of the General Partner of America First Multifamily Investors, L.P. in 2019. ATAX manages over $1 billion in assets consisting primarily of mortgage revenue bonds intended for multifamily affordable housing construction and permanent financing.