(Austin)—Strategic Housing Finance Corporation and Delphi Affordable Housing Group, Inc., both of Austin, Texas, are pleased to announce the acquisition of Forest Park Apartments and Silver Springs Apartments, both located in Austin, Texas, through a joint venture.
Forest Park Apartments is comprised of 228 housing units while Silver Springs Apartments is comprised of 360 units. Both properties will continue to be restricted to low income individuals and families that earn up to 60% of the area median gross income. Renovations to Forest Park are estimated to cost $4.7 million while Silver Spring is estimated at $6.7 million. Renovations will include new air conditioners, doors, windows, hot water heaters, kitchen appliances, and floor coverings. New microwave ovens, garbage disposals and ceiling fans will also be added to each unit. Additionally, the leasing center, clubhouse, laundry facilities, sports court and playground areas will be updated.
The allocation of tax credits is made feasible by the federal Low Income Tax Credit Program (LIHTC), administered in Texas by the Texas Department of Housing and Community Affairs. The LIHTC was created by the Federal Tax Reform Act of 1986 and provides the state of Texas with funding towards the development of affordable housing.
PNC MultiFamily Capital is providing $19.6 million in LIHTC equity. The Strategic Housing Finance Corporation is issuing $33 million in bonds for both properties which bonds are underwritten by Merchant Capital, LLC. The U.S. Housing and Urban Development (HUD) provided the credit enhancement for the FHA financing of over $45.3 million for the construction and permanent loans which are provided by Davis Penn Mortgage. The Trustee is Wilmington Trust, National Association.
Delphi Affordable Housing Group, Inc., is a real estate development and consulting company specializing in the financial structuring, due diligence, development, financing and syndication of multifamily affordable housing. Over the past 15 years, the company has acquired and rehabilitated more than twenty multifamily properties and has a current portfolio of over 3,100 units in four states.
The Strategic Housing Finance Corporation was created by the Travis County Commissioners Court. The SHFC works with private developers and public entities to research and create opportunities for producing and preserving affordable housing. The Strategic Housing Finance Corporation issues bonds and utilizes Low Income Housing Tax Credits to finance its housing acquisition and new developments.
The law firms include: Locke Lord LLP; Namen, Howell, Smith & Lee PLLC; Kutak Rock LLP; Jones Walker LLP; Germer & Gertz, LLP; Bracewell Giuliani LLP. Architectural services provided by The Hill Firm.