Love Funding closed a $5.95 million loan for the refinance and rehabilitation of Central Towers Apartments, an affordable senior community in southwest Detroit, Michigan.
Central Towers consists of 232 one-bedroom and two-bedroom apartments in two high-rise buildings. All but two of the units are currently covered by a Section 8 housing assistance payment (HAP) to help subsidize rents, and the borrower renewed its Section 8 contract as part of the transaction. The two remaining units are low-income housing tax credits (LIHTC) restricted at 60 percent AMI.
Love Funding director David Strachan and Midwest Regional director Bruce Gerhart secured the loans through the U.S. Department of Housing and Urban Development’s 223(f) loan insurance program. The HUD program provided the development team with low-rate, non-recourse financing for a 35-year term. Financing proceeds will be used to pay off current debt, complete repairs and fund the reserve account.
Central Tower Apartments received approval for Payment in Lieu of Taxes, which helps keep the property affordable by making it exempt from certain tax payments for a period of time.