The Lakes Region of New Hampshire is a scenic destination attracting visitors and second home owners alike, but an increase in real estate prices and conversions to short-term rentals has made it nearly impossible for working-class residents to find affordable homes. Lakes Region Community Developers meets this need by providing quality housing to help low- and moderate-income residents afford to live in the community where they work. When an affordable rental building was listed for sale in their area, Lakes Region Community Developers saw an opportunity to step in and help the community.
The rental property was built in the 1970s and was required to be maintained as affordable housing for forty years. With the requirement expiring, Lakes Region Community Developers was concerned the property could be purchased and redeveloped as high-end housing. The organization financed the purchase of the building, but because of the cost of redevelopment, they needed a second permanent mortgage, which proved difficult to find.
After months of conversations with other lenders, Lakes Region Community Developers reached out to NeighborWorks Capital and explained their needs. Although it was an unusual situation, NeighborWorks Capital agreed to a second position to support the preservation of the 25 affordable rentals.
The rehabilitation will focus on health and safety improvements for tenants. The project includes interior renovations, new windows, doors, insulation, and siding, and a sprinkler system for safety. Two apartments will be ADA-compliant, and all apartments will remain reserved for very low-income households.
“I spent six months talking with other lenders and not getting what we needed. In three months with NeighborWorks Capital, we closed on a loan with terms that worked for everyone.”
