D.C. Seniors Housing Property Begins Rehab
- Aug 02, 2011
Washington, D.C.–Jair Lynch Development Partners has closed on financing for the redevelopment of the Paul Laurence Dunbar Apartments, a 171-unit rental seniors housing property in the U Street Corridor of Washington. Renovations by Bozzuto Construction, WDG Architecture and Kettler Management will begin immediately and include a new HVAC system, new elevator assemblies, lobby and common area finishes, ADA improvements, and about $25,000 per unit for kitchen, bath and finish upgrades.
Jair Lynch partnered with the nonprofit Paul Laurence Dunbar Residents Association Inc. to buy the property last year when the association exercised its rights under the District of Columbia Tenant Opportunity to Purchase Act after the prior owner notified tenants of its intention to sell the 40-year-old property. Over the past year, Jair Lynch structured a package of debt and equity to facilitate the rehabilitation of the property.
The new financing package includes Housing Revenue Bonds insured by the U.S. Department of Housing and Urban Development through the Federal Housing Administration’s 221(d)(4) mortgage insurance program. The tax-exempt bonds were issued by the DC Housing Finance Agency as part of the U.S. Treasury Department’s New Issue Bond Program, which was created by the Housing and Economic Recovery Act of 2008. The debt package also includes taxable GNMA mortgage-backed securities.
HUD also extended the existing Section 8 contract for 20 years. Low-income residents will also be protected by a new affordable housing covenant lasting 30 years.
PNC Real Estate provided equity in the form of Low Income Housing Tax Credits (LIHTC), which was bridged by Enterprise Community Loan Fund via a collateralized Bridge Loan facility. The LIHTC allocation was provided by the DC Department of Housing and Community Development. In addition, the project secured a 40-year real estate tax abatement from the District of Columbia.