Greystone Affordable Development recently closed a $120.5 million transaction—its first in the state of Texas—in collaboration with Burnet, Texas-based Hamilton Valley Management, Inc., an owner and manager of affordable multi-family housing in rural areas of Texas.
Using the housing industry’s critical 4 percent Low Income Housing Tax Credit (Housing Credit), which is currently in crisis due to historically low rates, Greystone Affordable Development will redevelop, modernize and secure affordable rental homes for thousands of Texans.
“The rehabilitation of these properties, and the jobs that will be created during the extensive rehabilitation, would not be possible without the housing credit, our nation’s primary tool for financing affordable rental housing,” said Tanya Eastwood, president, Greystone Affordable Development. “Unfortunately, the program is facing significant challenges, threatening the development of affordable housing across the country at a time when it is needed more than ever.”
Hamilton Valley’s portfolio of affordable housing properties for this transaction includes 23 aged, USDA Rural Development Section 515 properties, comprising 802 apartment homes serving low-income households in 14 counties across Texas. Greystone’s affordable housing preservation group worked closely with USDA’s Rural Housing Service (RHS) Texas State Offices, as well as the Texas State Affordable Housing Corporation and Texas Department of Housing & Community Affairs to coordinate and secure the financing needed to acquire and rehabilitate this at-risk and much-needed housing.
“We now know first-hand the importance of the Housing Credit and what it can do to keep thousands of residents in their affordable rental homes,” said Dennis Hoover, president, Hamilton Valley Management, Inc. “The complexity of this transaction is truly incredible, and we are grateful to the many groups that contributed to its success.”
With the financing in place, the rehabilitation plan includes a fast-paced construction process, estimated to be complete within 16 months, during which no residents will be permanently displaced. Substantial renovations, averaging $37,200 per unit, will include both interior and exterior improvements. Particular emphasis will be placed on bringing the properties, built between 1987 and 2003, up to modern standards, addressing accessibility, functional obsolescence and deterioration.
