1 / 8

Case Study

This case study explores the successful acquisition and preservation of a failing rural rental housing project by a mission-driven nonprofit organization. The case study highlights the challenges faced, the financing sources utilized, and the factors that contributed to its success.

lkeyser
Download Presentation

Case Study

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Case Study Texas Rural Rental Housing Preservation Academy June 7, 2018

  2. Case Study • Acquisition of failing 515 project by mission driven NP • Short sale, acquired for appraised value • Small Complex (18 units) in very rural community • Loss of subsidy and affordability can not be replaced • Original construction/loan: 1975 • Major rehab with LIHTC: 1998 • Investor exit: 2013

  3. Case Study • RD had a loan in default, unpaid property taxes, out of state ownership, poor property maintenance • Initiated foreclosure process • Negotiations took some time, original owner difficult to work with • NP made the case to funders to save the affordability

  4. Case Study • Total Project Cost $1,313,000 • $830,000 physical improvements • $175,600 for rehabilitation (12 units) • $654,400 new construction (6 units) • $315,000 property acquisition (short sale)

  5. Case Study • Sources of financing • RD-USDA $315,000 • West Virginia Trust Fund $215,000 • Federal Home Loan Bank AHP $500,000 • West Virginia HOME funds $150,000 • Private bank loan $85,000 • Owner equity $48,000 • Total: $1,313,000

  6. Case Study • Reconfigured property now has 12 two bedroom units financed by RD-USDA with rental assistance • One six unit building split off from deed allowing tear down of damaged building (water, settling issues) • New building has 8 one bedroom units with no RD overlay, have HOME rents, affordable. • County H.A. providing vouchers for one bedroom units

  7. Case Study • Factors for success • Committed NP preserving affordable housing • Local ownership • Good relationship with H.A. for vouchers • Supportive elective and public officials • Strategy/plan for acq/rehab had flexibility • Great communication between NP and funders • Persistence • Patience

More Related