Kiva Apartments | Permanent Loan Case Study
Community Resources and Housing Development Corp.
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IMPACT
- Preserve 64 naturally-occurring affordable apartments for residents earning below 80% of area median income
- Expand CRHDC's community presence in Alamosa and San Luis Valley
- $6,269,100 permanent loan
- Innovative debt service reserve
NeighborWorks Capital was very responsive to our lending needs. They understood the challenges and provided a lending solution that works for us.
SYNOPSIS
After serving rural Alamosa, CO for several years, Community Resources and Housing Development Corp (CRHDC) sought to address the needs of the greater San Luis Valley, a community facing high rental rates and home prices due to a tight housing market. They found an opportunity to expand their geographic impact with a mixed-use portfolio acquisition that included Kiva Apartments, a 64-unit building providing much needed affordable housing to the area.
CHALLENGE & SOLUTION
CRHDC needed to keep rents affordable without subsidy financing. As they worked to get rents to the right level in their market, NeighborWorks Capital offered an innovative approach with a debt service reserve by assuming that in the next few years, CRHDC could increase their rental income while remaining affordable in the market. NeighborWorks Capital sized the loan based on these projections and provided a $6.3 million permanent loan for Kiva Apartments with a debt service reserve to cover DCR shortfalls in the first two years of rent transition.
ABOUT NEIGHBORWORKS CAPITAL
NeighborWorks Capital fills a critical resource gap by investing in communities that have been underserved by traditional financial institutions. They provide flexible, responsive, and affordable financing solutions for residential and commercial real estate development and business expansion. NeighborWorks Capital is a national nonprofit, certified Community Development Financial Institution rated by Aeris-Insight serving members of the NeighborWorks America network in all 50 states, Puerto Rico, and the District of Columbia.
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