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Presentation, discussion, and possible action regarding an award of Multifamily Direct Loan funds to Providence on Park (23509)
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RECOMMENDED ACTION
recommendation
WHEREAS, the Governing Board previously approved the 2023-1 Notice of Funding Availability (NOFA), which made available $42,637,605 in National Housing Trust Fund (NHTF); and
WHEREAS, Providence on Park applied for $5,000,000 under this NOFA, and is being recommended for award.
NOW, therefore, it is hereby
RESOLVED, that the award of funding is approved, subject to program review, underwriting, and any conditions that may be applicable contained within the Real Estate Analysis Underwriting Reports to be posted to the Department's website; and
FURTHER RESOLVED, that the Board's approval is conditioned upon satisfaction of all conditions of underwriting and completion of any other reviews required to assure compliance with the applicable rules and requirements.
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BACKGROUND
23509 Providence on Park - $5,000,000 NHTF
Description: Providence on Park proposes the new construction of 80 units that will serve the elderly population of Lumberton, Hardin County. Unit sizes will include one- and two-bedroom units with rent/income levels from 30% to 60% of the Area Median Income (AMI). Out of the total 80 units, approximately 28 will be NHTF units restricted to the greater of the poverty line or 30% AMI and will be limited to NHTF rents, which are calculated at 30% of the applicable income limit, with adjustments for the number of bedrooms in a unit.
Financing and Regulatory Terms: Subject to final underwriting as further set forth in the Real Estate Analysis (REA) Report, the $5,000,000 NHTF loan will be in first lien position with an interest rate of 2.0%, a 30-year term, and a 40-year amortization period. The Development has previously received $1,522,699 in annual 9% Housing Tax Credits, and the Developer has deferred $655,661 in developer fee to make the transaction feasible.
Organizat...
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