Red Stone Partners announced that it has provided $71.1 million in tax-exempt bond financing for six affordable housing properties in Texas.
The properties were acquired by affiliates of Dalcor Cos., a Dallas-based real estate acquisition, development, and management firm. The developments are located in Houston, Dallas, Beaumont, Wichita Falls, Bryan, and Huntsville, and have 1,444 units.
The bonds were issued by the Texas State Affordable Housing Corp. Indianapolis-based City Real Estate Advisors will also invest approximately $33 million in these properties through its sponsorship of low-income housing tax credit (LIHTC) limited partnerships. Merchant Capital of Montgomery, Ala., also acted as an adviser and a placement agent for Dalcor.
U.S. home prices saw their biggest year-on-year jump in August in six years, more evidence that the market recovery has gained traction, a data provider said Tuesday. CoreLogic reported a 0.3% gain in prices in August, to take the year-on-year jump to 4.6%.The home price data released Tuesday is broadly confirmed by other, less current measures from S&P/Case-Shiller and the Federal Housing Finance Agency that show a slowly recovering picture after a housing bubble burst that left prices 27% below peaks, according to CoreLogic data.
A New York-based private equity firm has purchased 94 homes in the Chicago area from Fannie Mae as part of a pilot program to sell foreclosed properties in bulk in hard-hit housing markets. The Cogsville Group LLC, which focuses primarily on distressed real estate, paid approximately $2.1 million for its equity interest in the homes under a joint venture with the Federal Housing Finance Agency. The 94 properties include 111 rental units, 68 of which are occupied and the remainder are vacant. The total value of the joint-venture transaction with the FHFA is estimated at $11.8 million, or 86.2 percent of the appraised market value of the properties.
– Chicago Tribune
Affordable Housing Associates plans to welcome the first residents to its new senior housing community, the 70-unit Merritt Crossing building at 609 Oak St. in Oakland. The $28.4 million project is near the city’s Chinatown neighborhood on a parcel that was previously a vacant lot. The project will cater to people age 55 and up with incomes between 30 and 50 percent of the area median income. Half of the units are reserved for residents with specific needs or situations such as being formerly homes, living with HIV or AIDS, and suffering from mental illness.
– San Francisco Business Times
Bike & Build, a cross-country cycling organization based in Roxborough, PA celebrates its 10th anniversary this year. The unique organization combines the concepts of affordable housing awareness, getting young adults involved in the cause and cross-country cycling. Inspired by the now-discontinued Habitat Bicycle Challenge sponsored by Habitat for Humanity, Bike & Build gathers young adults between the ages of 18 and 25 to trek across the country in the hope of raising affordable housing awareness in America.
A jump in sales of previously occupied homes and further gains in home construction suggest the U.S. housing recovery is gaining momentum. The pair of reports Wednesday follows other signs of steady progress in the housing market after years of stagnation. New-home sales are up, builder confidence has reached its highest level in more than six years and increases in home prices appear to be sustainable. Sales and construction rates are still below healthy levels, economists caution. But the improvement has been steady. And the broader economy is likely to benefit. When home prices rise, Americans typically feel wealthier and spend more — a point Federal Reserve Chairman Ben Bernanke made last week after the Fed unveiled a plan to lower mortgage rates. Consumer spending drives 70 percent of the economic growth.
– Washington Post
Major renovations to existing apartment homes near Ivy Tech Community College are complete thanks to over $6 million of investment through federal low-income housing tax credits, and additional investment by the City of South Bend, the Federal Home Loan Bank of Indianapolis and Lake City Bank. The State of Indiana awarded $6 million in tax credits to South Bend Heritage Foundation in the spring of 2011 for the renovation of Heritage Homes Southeast, a 54 unit housing development just east of the Ivy Tech Community College campus. Renovations were recently completed on budget and ahead of schedule. The new office and community room are now open for business. Heritage Homes Southeast’s 54 affordable rental units were originally built in 1996 by South Bend Heritage Foundation. Mayor Pete Buttigieg will help cut the ribbon on Thursday, September 20th.
From Barry Cummings, Director of Development, Chenango County ARC:
We are trying to create a LIHTC deal w/ state dollars to build a 34 unit complex and set aside 11 units for the developmentally disabled. The special needs tenants would not require 24 hour care and would be truly integrated into a community setting. Are you aware of anyone doing a set aside project with just the developmentally disabled as the special needs tenant population?
Got an answer for Barry? Leave it in the comments.