Lument recently announced the successful underwriting of $25 million in short-term bonds and the closing of a $22.1 million Freddie Mac unfunded forward loan as part of a financing structure that allows DHA Housing Solutions for North Texas (DHA) and the Volunteers of America National Services (VOANS) to develop The Oaks, a mixed-income seniors housing community in Dallas, Texas. Tracy Peters, senior managing director, and Dale Giffey, associate director, led the transaction for Lument.
The Oaks is being co-developed by DHA and VOANS, the latter of which is also the sponsor and guarantor. DHA is the tenth largest housing authority in the country, providing housing assistance in North Texas to more than 54,000 people annually through its Public Housing and Housing Choice Voucher programs. In addition, DHA provides more than 2,000 units of work-force housing through its owned-housing and partnerships with private developers.
“We are excited to work with Volunteers of America National Services to create much-needed affordable housing for the seniors in our community,” said Troy Broussard, president and chief executive officer for DHA. “Our goal is to increase the amount of essential affordable housing across the communities we serve, and The Oaks is going to be a wonderful development in Oak Cliff that houses seniors and also provides access to healthcare for our neighbors.”
VOANS was formed in 1982 as a result of Volunteers of America consolidating its housing and healthcare services into one nonprofit corporation that oversees housing development projects. VOANS has a portfolio of approximately 240 properties and 13,000 units across 40 states and Puerto Rico.
Construction on The Oaks is expected to be complete in 2023. Upon stabilization, the $22.1 million Freddie Mac loan and tax credit equity will be used to pay off a $35 million construction loan from a national bank. The financing structure also includes subordinate debt of $4.5 million from HOI, Inc. the bond issuer, and $750,000 in Capital Magnet Funds from VOANS.
The Oaks will consist of 260 units for residents aged 62 or older. Over 90% of the units will have income or rent restrictions, with 216 units serving seniors earning at or below 60% area median income (AMI) and 27 units serving seniors earning at or below 30% AMI. In addition, DHA will provide project-based vouchers (PBVs) for 103 of the units and public housing subsidy for 27 units.
The 260 units are housed in a four-story building configured around an interior landscaped courtyard with seating, outdoor cooking amenities, and a covered pavilion area. Other amenities include a community garden, onsite medical clinic, two rooftop decks, clubhouse, craft room, fitness room, and two dog parks. The property will be managed by VOA-Texas.