Red Capital Group Finances Acquisition and Rehabilitation of HUD 202 Property

By Anuradha Kher, Online News EditorColumbus, Ohio — The Red Capital Group has arranged an investment equity worth $4.15 million for the acquisition and rehabilitation of a US Department of Housing and Urban Development (HUD) Section 202 elderly housing property in Tucson, Ariz. The property was acquired by affiliates of Urban Innovations Ltd. of Chicago. The property, Council House Apartments, is situated near the University of Arizona and the historic Sam Hughes neighborhood. Council House contains 137 one-bedroom units and 12 two-bedroom units restricted to occupancy by seniors’ households (age 62+) earning no more than 60 percent of Area Median Income.  There is also a project-based Housing Assistance Payments subsidy from HUD, which limits the residents’ cost for housing (rent plus utilities) to no more than 30 percent of household income, increasing the affordability of Council House Apartments. The planned rehabilitation will enhance the interiors of the apartments and address minimal deferred maintenance. Rehabilitation will commence in early 2008, and will be completed by year-end.  The rehabilitation will include new kitchens and baths in each apartment unit, and new cabinetry and replacement of aged appliances. Urban Innovations will also make various repairs and improvements to the building, including improvements to the life-safety systems and replacement of boilers that supply the residents’ hot water.