Dougherty Mortgage recently closed a $20.7 million HUD 221 (d)(4) loan for the refinancing and rehabilitation of Oak Park Village, a 100-unit affordable multifamily property in St. Louis Park, Minnesota.
All 100 units will be covered by a Project-Based Section 8 HAP Contract. As part of this transaction, the property will receive $4.73 million ($47,292 per unit) in renovation work, including upgrades to units and common areas. Renovations will include replacement of certain mechanical, plumbing and electrical systems; upgraded lighting to LED lights; improvement of on-site playground; and installment of raised planter beds.
In addition to the HUD-insured first mortgage, the project utilized Low Income Housing Tax Credits and tax-exempt bonds. The bonds were underwritten by Dougherty & Company LLC, an affiliate of Dougherty Mortgage LLC. The HUD 221 (d)(4), 40-year term plus construction period, 40-year amortization, non-recourse loan was arranged for borrower Oak Park Village Partners, LP.
