Greystone Arranges $120M to Redevelop Texas Affordable Communities

The portfolio features 23 properties located across 14 counties.
Windmill Apartments. Image courtesy of Greystone

Greystone Affordable Development has secured a variety of different financing options totaling $120.5 million to fund the redevelopment of affordable housing units throughout Texas. The Greystone affiliate has entered the Texas market for the first time with this project by working with Hamilton Valley Management, who owns the properties.

The 802-unit portfolio is comprised of 23 USDA Rural Development Section 515 properties that are located across 14 counties of Texas. The multifamily and senior living properties range from 24 to 74 units in size and were built between 1974 and 2003. Greystone told Multi-Housing News that the company began work on the renovations after the transaction closed on June 30. The interior and exterior renovations average $37,200 per unit and are expected to be completed within 16 months, while not leaving any residents permanently displaced.

AFFORDABLE HOUSING CREDITS

Greystone secured an extensive financing plan for the Hamilton Valley properties that include a single issuance of $35.9 million in multifamily private activity tax-exempt bonds by the Texas State Affordable Housing Corp., $19.1 million from the purchase of 4 Percent Housing Credits by Boston Financial Investment Management, assuming $19.3 million of the original USDA Section 515 debt, $29.5 million in long-term debt from USDA guaranteed 538 loans, and other funding sources that totaled $16.7 million. Greystone previously also sought out the 4 percent low income housing tax credits when it renovated a portfolio of 762 at-risk units in South Carolina.

While Greystone was able to secure capital from the 4 Percent Low Income Housing Tax Credit Program, Tanya Eastwood, president of Greystone Affordable Development, said in prepared remarks that the program was facing significant challenges. Eastwood added in her prepared statement that the loss of the program could threaten the development of affordable housing throughout the U.S. and supported the passage of federal policies including the Moving Forward Act, H.R.2 and the Emergency Affordable Housing Act of 2020.

The Emergency Affordable Housing Act of 2020 was introduced in the Senate in June as a response to the impact the COVID-19 pandemic has caused on affordable housing and would institute a permanent four percent housing credit rate. Eastwood said in prepared remarks that the bill’s passage would strengthen the housing credit program and create more affordable homes.