LDG Secures $38M for Baton Rouge Affordable Housing
- Feb 06, 2018
LDG Development, a for-profit affordable housing developer based in Louisville, has obtained financing to begin work on Meadows at Nicholson, a 204-unit affordable housing development in Baton Rouge. Construction of the property will be financed by about $38 million in bonds, tax credits and HOME funds through the Louisiana Housing Corp.
All the long-planned property’s units will be affordable for households earning 60 percent or less of the area median income. Common amenities will include a 3,800-square-foot clubhouse, swimming pool, and fitness center.
The company is no stranger to the capital of Louisiana. Previously LDG developed Mallard Crossing affordable apartments on Greenwell Springs Road in Baton Rouge, as well as the Woodcrest Apartments, also affordable, on North Lobdell Boulevard. The developer also completed the Port Royal Apartments on Airline Highway, another Baton Rouge affordable housing community.
Altogether, LDG has developed over 7,000 units in 40 affordable communities in Indiana, Kansas, Kentucky, Louisiana, Mississippi, Texas, Georgia and Virginia.
Financing a Mix of Sources
Capital One’s multifamily finance groups, working in tandem, facilitated the financing.
Capital One Community Finance purchased $15 million of 4 percent low income housing tax credits through syndicator Enterprise Community Investment, while Capital One Multifamily Finance closed a $19.9 million FHA 221d4 tax-exempt bond.
The remainder of the financing consisted of a $2 million HOME loan from the Louisiana Housing Corp., and a $1 million letter of credit from LDG. The development will include 12 HOME units.