By Anuradha Kher, Online News Editor
Marriottsville, Md.–Harkins recently completed loan closings on six projects and has begun construction on all in a matter of 45 days. These projects, located in Pennsylvania and Maryland, are funded by a variety of programs, including the Low Income Housing Tax Credit (LIHTC), and the Tax Credit Assistance Program (TCAP) and Section 1602 Exchange funds that are part of the American Recovery and Reinvestment Act (ARRA) of 2009.
“Since many of these projects have federal stimulus money, it took the state some time to figure out how to disburse the funds,” Larry Kraemer, vice president of Harkins Builders tells MHN. “It so happened that the loans fell into line at the same time.” All of them are expected to be ready in 12 months.
ARRA provided funding for several affordable housing programs, including Community Development Block Grant funds and project-based rental assistance. For low income housing tax credit developers struggling to find investors, the most significant provision of the act is the Tax Credit Assistance Program (TCAP). TCAP provides funds directly to state housing finance agencies to disperse to existing tax credit developments in need of additional gap funding.
The six projects comprise 493 units in total and are predominantly affordable units for seniors or families, says Kraemer.
Sierra Woods is a 160-unit, $6 million rehab of a garden community in Columbia, Maryland. This project utilized a combination of tax credits and rental home funds.
The Hickman, a 60-unit, $8.5 million independent living addition to an assisted living community in West Chester, Pennsylvania, will be linked to the existing facility by a bridge over a public street. Funding for The Hickman includes 9% tax credits and TCAP funds.
Fairgrounds Phase II comprises 71 units of rental town homes in Chester, Pennsylvania. Funding was with LIHTCs issued through the Pennsylvania Housing Finance Agency and TCAP funds.
Somerset Commons, a family-housing project located in Princess Anne, Maryland, includes 60 units spread over several buildings and a community building. The financing included 9 percent tax credits and Section 1602 Exchange funds.
Weinberg Village Phase V is a $9 million project in Owings Mills, Maryland that combines county financing through Community Development Block Grant funds and LIHTCs. The Weinberg Foundation and a construction loan from Capital One completed the financing.
Delaware Terrace includes several phases of rental and homeownership opportunities in Easton, Pennsylvania, and a site component, which closed. The Pennsylvania Housing Finance Agency issued tax credits, and TCAP funding is being utilized.
Harkins expects to start another project in Columbia, Maryland when Guilford Gardens (pictured) closes later this month. The 269-unit revitalization of a 1970s community will include the demolition and reconstruction of multiple buildings for senior and rental opportunities. Multiple funding sources will be used, including LIHTCs and federal funding for rain harvesting cisterns. Rain harvesting cisterns is is used to harvest and reuse water.