Walker & Dunlop, Inc. says that it has structured $21.9 million in financing for the acquisition and substantial renovation of an existing 42-unit affordable housing property with an additional four new construction units.
The Ritch Homes Apartments in Washington, D.C. were previously subject to a Section 8 HAP contract that was at risk of expiring and threatened this project’s affordability, the statement said
Together, with the United States Department of Housing and Urban Development (HUD), the D.C. Housing Finance Agency (DHCFA), and Walker & Dunlop, the sponsor, Standard Communities, was able to extend the HAP contract as well as preserve and rehabilitate 46 units of affordable housing for the long term.
The financing was arranged through HUD’s 221(d)(4) Substantial Rehabilitation program. Standard Communities secured a 4% Low-Income Housing Tax Credit (LIHTC) contract through the DCHFA. The rent restrictions associated with the contract will apply to all 46 units. The new LIHTC restrictions will operate under a 15-year initial tax credit compliance period, and is followed by an additional 15-year extended use preservation period, thereby maintaining the property’s affordability through 2050.
“At Standard Communities, we pride ourselves on connecting our capital with our values,” Scott Alter, principal and co-founder of Standard Communities, said in a statement.
“This public-private partnership will expand and preserve the affordable housing at Ritch Homes Apartments, and more importantly, for the Washington, D.C. community that desperately needs more housing like Ritch Homes. This transaction will provide much needed, high-quality affordable housing for generations.”
