NeighborWorks Capital is pleased to provide a $3,800,000 construction loan in participation with FAHE for the development of Community Action Partnership of North Alabama’s (CAPNA) Cedar Lake Crossing. These funds will go towards the construction of this 56-unit development for families in Decatur, Alabama.
The newly constructed apartment complex will consist of five buildings on 6.05 acres: four residential buildings with 40 two-bedroom and 16 three-bedroom units, and one community building. Of the residential units, 32 two-bedroom and 12 three-bedroom units will be reserved for tenants earning at or below 60% of the Area Median Income (“AMI”) for Decatur, while 8 two-bedroom and 4 three-bedroom units will be set aside for tenants earning at or below 50% AMI.
According to an appraisal done on the project, the primary market area is experiencing steady population and household growth, driven in part by its proximity to Huntsville’s expanding aerospace and technology sectors. This means there is sufficient demand for a property such as Cedar Lake Crossing, especially given the modern interior finishes and abundance of community amenities that will be included in the property compared to other rent-restricted properties in the area. There is also an overall limited supply of affordable family units in the region relative to the demand, so this development will provide much-needed housing for low-income families.
CAPNA is a large, nonprofit originally established in 1965 as the Marshall Morgan CAC in Decatur, Alabama. CAPNA serves a 25-county region across North Alabama, delivering programs that include Head Start, senior companion services, Meals on Wheels, weatherization, energy conservation, and IT consulting for nonprofits. Affordable housing is one of CAPNA’s largest service areas, with more than 20 years of experience partnering on multi-family rental developments. CAPNA is a designated Community Action Agency (CAA), also known as a CAP agency.
NeighborWorks Capital has three other active loans with CAPNA, all of which are in good standing. We look forward to continuing our partnership with them as they continue their community development efforts.
