Capital One Arranges Funding for Affordable Community in Houston
- Jan 17, 2017
Houston—Capital One Bank and Hettig/Kahn Development Corp. have almost completed construction of Cottages at South Acres, a 144-unit affordable community of single-family homes in Southeast Houston. A grand opening event will take place on Jan. 27 at 11005 Scott St.
The asset represents the third phase of the South Acres development and is located adjacent to South Acres 1 and South Acres 2, communities that offer 130 four-bedroom single-family units. South Acres Ranch Phase 1 opened in May 2010, while Phase 2 opened in October 2011. Both developments were funded through Capital One’s Community Finance Group, which provided $41.2 million. The amount brought the bank’s total financing of the three-phase development to $76.9 million.
Cottages at South Acres began construction in September 2014 and consists of 144 single-family rental homes, which include one- and two-bedroom cottage-style units and four-bedroom single-family homes, all with detached garages.
“Fostering the economic well-being of local communities and their residents is a vital part of our work at Capital One Bank,” Jim Nicholas, Houston market President for Capital One, said in a prepared statement. “We are proud to help provide more affordable housing for the families of Southeast Houston through the construction of Cottages at South Acres and pleased to support the South Acres development since its inception. At Capital One Bank, we recognize that investing in affordable housing is about much more than financing new construction. It’s about expanding economic opportunities for individuals, families and communities.”
Capital One Bank provided both debt and equity financing for Cottages at South Acres, including a $15.8 million construction loan and the purchase of $15.2 million in low income housing tax credits issued by the Texas Department of Housing and Community affairs and syndicated by Hudson Housing Capital. Additional financing included $3.1 million in federal Housing and Urban Development (HUD) HOME Investment Partnership funds from the City of Houston Housing and Community Development Department.
Image courtesy of Cottages at South Acres