Category: Tax Credits

Miller Hall & Triggs closes on two RAD Low Income Housing Tax Credit Transactions in June 2018

Richard M. Joseph with Miller, Hall & Triggs, LLC closed on two RAD Low Income Housing Tax Credit Transactions resulting in the conversion of all 390 public housing units of the Housing Authority of the City of Texarkana, Arkansas.

The RAD program,  administered by HUD,  was established in order to give public housing authorities a powerful tool to preserve and improve public housing projects and address issues of deferred maintenance by providing for the voluntary conversion of public housing and other HUD-assisted properties to long-term, project-based Section 8 rental assistance, utilizing either project-based vouchers or project-based rental assistance contracts. RAD allows public housing agencies to leverage public and private debt and equity to help ensure that the units remain affordable to low income households.

The Texarkana RAD Conversion project made possible the conversion and rehabilitation of 335 units in eight separate apartment complexes through the use of 4% low income housing tax credits generating $6,356,897 in equity, $13,100,000 Multi-family Housing Revenue Bonds issued through the Arkansas Development Finance Authority, $10,000,000 non-recourse loan through the HUD 221(d)(4) program, and use of Public Housing Operating Reserve Funds.

The Housing Alliance 2 project made possible the conversion and substantial rehabilitation of 55 units in two separate apartment complexes and five single-family homes through the use of 4% low income housing tax credits generating $1,234,370 in equity, $2,900,000 Multi-family Housing Revenue Bonds issued through the Arkansas Development Finance Authority and use of Public Housing Operating Reserve Funds and Public Housing Capital Funds.

Miller Hall & Triggs closes on two RAD Low Income Housing Tax Credit Transactions in December 2017

Richard M. Joseph with Miller, Hall & Triggs, LLC closed on two RAD Low Income Housing Tax Credit Transactions in December 2017 benefiting the Housing Authority of the City of Rock Island, Illinois and its affiliated not for profit corporation and the Housing Authority of the City of Pine Bluff, Arkansas and its affiliated not for profit corporation.

The RAD program,  administered by HUD,  was established in order to give public housing authorities a powerful tool to preserve and improve public housing projects and address issues of deferred maintenance by providing for the voluntary conversion of public housing and other HUD-assisted properties to long-term, project-based Section 8 rental assistance, utilizing either project-based vouchers or project-based rental assistance contracts. RAD allows public housing agencies to leverage public and private debt and equity to help ensure that the units remain affordable to low income households.

The Rock Island, Illinois project made possible the conversion and rehabilitation of 141 units in an eleven story apartment building through the use of 4% low income housing tax credits generating $3,590,410 in equity, $6,100,000 Multi-family Housing Revenue Bonds issued through the Illinois Housing Development Authority, $4,487,200 non-recourse loan through the HUD 223(f) program, and use of Public Housing Operating Reserve Funds and Replacement Housing Factor Funds.

The Pine Bluff, Arkansas project made possible the conversion and substantial rehabilitation of 251 units in four separate apartment complexes through the use of 4% low income housing tax credits generating $5,557,636 in equity, $10,500,000 Multi-family Housing Revenue Bonds issued through the Arkansas Development Finance Authority, $7,055,400 non –recourse loan through the HUD 223(f) program and use of Public Housing Operating Reserve Funds and Public Housing Capital Funds.

MHT Regularly Assists with Low Income Housing Tax Credit Projects

Miller, Hall & Triggs, LLC, provides experienced counsel to a number of housing authorities and not-for-profit corporations seeking to develop or redevelop affordable housing through the Rental Assistance Demonstration Program (“RAD”) of the United States Department of Housing and Urban Development and/or low income housing tax credits throughout Illinois and Arkansas. We regularly work with housing authorities and not-for-profit entities, the Illinois Housing Development Authority, lenders, investors and FHA and HUD to negotiate and close extremely complex housing transactions.

Examples of low income housing tax credit projects we have worked on:

Project Name: Texarkana RAD
Housing Authority of the City of Texarkana, Arkansas
Conversion of entire Public Housing portfolio pursuant to Rental Assistance Demonstration Program

Transaction Closed:  June 2018
Project Type: Substantial Rehabilitation
Units: 335 units in eight separate apartment projects
Units Serving Low-Income: 335
Cost of Development: $25,942,000
Bonds:  $13,100,000 Arkansas Development Finance Authority Multifamily Housing Revenue Bonds

IRS Funding: Low-Income Housing Tax Credits
HUD Funding: FHA 221(d)(4) insured mortgage

HA Funding:  $2,754,000 loan from Housing Authority from Capital Funds

HUD Funding:  Section 8 Project-Based Vouchers
Financing Structure: Equity – Loans – Grants
Current Status: Rehabilitation in process

Project Name: Housing Alliance 2
Housing Authority of the City of Texarkana, Arkansas
Conversion of entire Public Housing portfolio pursuant to Rental Assistance Demonstration Program

Transaction Closed:  June 2018
Project Type: Substantial Rehabilitation
Units: 55 units in 2 separate apartment projects and five single-family residences
Units Serving Low-Income: 55
Cost of Development: $5,768,080
Bonds:  $2,900,000 Arkansas Development Finance Authority Multifamily Housing Revenue Bonds

IRS Funding: Low-Income Housing Tax Credits
HA Funding:  $3,423,710 loan from the Housing Authority from Capital Funds

HUD Funding:  Section 8 Project-Based Vouchers
Financing Structure: Equity – Loans – Grants
Current Status: Rehabilitation in process

Project Name: Sunset Heights
Rock Island, IL Housing Authority and Community Housing Services, an Illinois not-for-profit corporation
Conversion of Public Housing pursuant to Rental Assistance Demonstration Program

Transaction Closed:  December 2017
Project Type: Substantial Rehabilitation
Units: 141 (70 of which target families and 71 of which target seniors)
Units Serving Low-Income: 141
Type of Construction: 11-story apartment complex
Cost of Development: $12,040,776
Bonds:  $6,100,000 Multifamily Housing Revenue Bonds issued through Illinois Housing Development Authority

IRS Funding: Low-Income Housing Tax Credits
HUD Funding: FHA 223(f) insured mortgage

HUD Funding:  Section 8 Project-Based Vouchers
Financing Structure: Equity – Loans – Grants
Current Status: Rehabilitation in process

Project Name: Pine Bluff Apartments
Pine Bluff, AR Housing Authority and Crossroads Community Development Corporation, an Arkansas not-for-profit corporation
Conversion of Public Housing pursuant to Rental Assistance Demonstration Program

Transaction Closed:  November 2017
Project Type: Substantial Rehabilitation
Units: 251
Units Serving Low-Income: 251
Type of Construction: Four separate facilities, each constituting a separate apartment complex
Cost of Development: $20,581,778
Bonds:  $10,500,000 Multi-Family Housing Revenue Bonds issued through Arkansas Development Finance Authority

IRS Funding: Low-Income Housing Tax Credits
HUD Funding: FHA 223(f) insured mortgage

HUD Funding:  Section 8 Project-Based Vouchers
Financing Structure: Equity – Loans – Grants
Current Status: Rehabilitation in process

Project Name: Galena Park Terrace, Peoria, Illinois
Galena Park Terrace, an Illinois Not-for-Profit Corporation
Year Completed: 2016
Project Type: Rehabilitation
Units: 127
Units Serving Low-Income:  127
Type of Construction: One bedroom and Studio Apartment Complex
Cost of Development: $20,189,292
IRS Funding: Low-Income Housing Tax Credits
HUD Funding FHA: 221(d)(4) insured mortgage
Financing Structure: Equity – Loans
Current Status: Construction and final close-out complete
Fully leased

Project Name: Leisure Acres, East Peoria, Illinois
East Peoria Jaycees Housing Corporation, an Illinois not-for-profit corporation
Year Completed: 2015
Project Type: Rehabilitation
Units: 100
Units Serving Low-Income: 100
Type of Construction: Apartment Complex
Cost of Development: $11,271,000
IRS Funding: Low-Income Housing Tax Credits
HUD Funding:  IRP Subsidy
HUD Funding: Project-Based Rental Assistance (PBRA)
Financing Structure: Equity – Loans
Current Status: Construction and final close-out complete
Fully leased and pending final closeout

Project Name: Lynden Lane
Rock Island, IL Housing Authority
Year Completed: 2015
Project Type: New Construction (demolition and redevelopment of Public Housing)
Units: 55
Units Serving Low-Income: 43
Type of Construction: Single Family and Duplex
Cost of Development: $14,112,000
Public Funding: Illinois Affordable Housing Tax Credits
IRS Funding: Low-Income Housing Tax Credits
HUD Funding: FHA 221(d)(4) insured mortgage
Financing Structure: Equity – Loans
Current Status: Construction and final close-out complete
Fully leased and pending final closeout

Project Name: Pana Towers
Christian County Integrated Community Services (Illinois)
Year Completed: 2014
Project Type: Rehabilitation
Units: 72
Units Serving Low-Income: 72
Type of Construction: 8 Story Elevator Apartment Building
Cost of Development: $8,238,000
Public Funding: Illinois Affordable Housing Tax Credits (IAHTC),
FHLB Affordable Housing Program (AHP)
IRS Funding: Low-Income Housing Tax Credits
HUD Funding: FHA 221(d)(4) insured mortgage
HUD Funding: RAD/Project-Based Rental Assistance (PBRA)
Financing Structure: Equity – Loans – Grants
Current Status: Rehab and final close-out complete
Fully leased and pending final closeout

Project Name: Southern Crossing
Pine Bluff, AR Housing Authority
Year Completed: 2013
Project Type: New Construction – Mixed Income
Units: 65
Units Serving Low-Income: 48
Type of Construction: Single Family
Cost of Development: $10,869,370
Public Funding: HOME, FAF/BMIR
IRS Funding: Low-Income Housing Tax Credits
HUD Funding FHA: 221(d)(4) insured mortgage
HUD Funding:  Section 8 Project Based Vouchers
Financing Structure: Grants – Equity – Loans
Current Status: Stabilized with High Occupancy

Project Name: Clayton Heights
Ft. Smith, AR Housing Authority
Year Completed: 2013
Project Type: New Construction – Mixed Income
Units: 57
Units Serving Low-Income 35
Type of Construction: Single Family
Cost of Development: $9,259,568
Public Funding: HOME, FAF/BMIR
IRS Funding: Low-Income Housing Tax Credits
HUD Funding:  FHA 221(d)(4) insured mortgage
HUD Funding:  Section 8 Project Based Vouchers
Financing Structure: Grants – Equity – Loans
Current Status: Stabilized 100% occupancy

Project Name: The Meadows
Jacksonville, AR Housing Authority
Year Completed: 2013
Project Type: New Construction – Mixed Income
Units: 55
Units Serving Low-Income:  41
Type of Construction: Single Family
Cost of Development: $13,191,000
Public Funding: HOME, CDBG
IRS Funding: Low-Income Housing Tax Credits
HUD Funding: FHA 221(d)(4) insured mortgage
HUD Funding: Section 8 Project Based Vouchers
Financing Structure: Grants – Equity – Loans
Current Status: Stabilized with High Occupancy

Project Name: Cascade Gardens
Rock Island, IL Housing Authority
Year Completed: 2011
Project Type: New Construction
Units: 70
Units Serving Low-Income 70
Type of Construction: Multi-Family Special Needs Apartments
Cost of Development: $13,191,000
Public Funding: American Recovery & Reinvestment Act (ARRA)
IRS Funding: Low-Income Housing Tax Credits
HUD Funding:  Mixed-Finance
HUD Funding:  Section 8 Project Based Vouchers
HUD Funding:  Tax Credit Assistance Program (TCAP)
Financing Structure: Grants – Equity – Loans
Current Status: Stabilized with High Occupancy

Project Name: North Pointe II, Development
Ft. Smith, AR Housing Authority
Year Completed: 2010
Project Type: New Construction
Units: 67
Units Serving Low-Income
Households: 50
Type of Construction: Single-Family – Duplex
Cost of Development: $10,811,336
Public Funding: HOME – CDBG – City of Ft. Smith St. Fund
IRS Funding: Low-Income Housing Tax Credits
HUD Funding: Capital Funds
HUD Funding: Section 8 Project Based Vouchering
Financing Structure: Grants – Equity – Loans
Current Status: Stabilized with High Occupancy

Project Name: North Pointe, Development
Ft. Smith, AR Housing Authority
Year Completed: 2007
Project Type: New Construction
Units: 50
Units Serving Low-Income
Households: 40
Type of Construction: Single-Family – Duplex
Cost of Development: $6,511,336
Public Funding: HOME – CDBG – City of Ft. Smith St. Fund
IRS Funding: Low-Income Housing Tax Credits
HUD Funding: Capital Funds
HUD Funding: Unrestricted Section 8 Reserves
HUD Funding: Section 8 Project Based Vouchering
State Funding: State Low-Income Housing Tax Credits
Financing Structure: Grants – Equity – Loans
Current Status: Stabilized Operation 100% Occupied

Project Name: County Estates
Menard County, Illinois Housing Authority
Ownership Type: Scattered Site Rentals
Project Type: New Construction
Year Completed: 2007
Units: 68 Detached Single-Family and Multi-family Rental Units
Units Serving Low-Income Households: 60
Cost of Development: $12,518,000
Public Funding: HUD HOPE VI Demolition, Capital Funds
Low-Income Housing Tax Credits
State Tax Credits
Illinois Affordable Housing Trust Fund
FHLB AHP Program
Conventional Financing
Project Based Section 8 Vouchering
Financing Structure: Grants and Loans
Under Limited Partnership Ownership
Current Status: Stabilized with High Occupancy

Project Name: Oakwood Trace Townhomes L. P.
Champaign County, Illinois Housing Authority
Ownership Type: Limited Partnership
Project Type: Rehabilitation
Year Completed: 2002
Units: 50
Units Serving Low-Income
Households: 39
Cost of Development: $7,200,000
Public Funding: HOME, CDBG, City Utility funds,
FHLB (AHP) Program, LIHTC,
HUD Upfront Grant, Fannie Mae,
Conventional Bank funding
Financing Structure: Grants and Loans under a Limited
Partnership
Current Status: Stabilized with 98% Occupancy

Click here to read testimonials and recommendations with respect to our work on Low Income Housing Tax Credit Projects, or contact Richard M. Joseph to see how we can help you.