Debt Deals Lay Foundation for Healthy Communities
During the past year, The Community Development Trust continued to support the development and preservation of affordable multifamily communities by providing long-term, fixed-rate financing to property owners, developers and purchasers. Following are brief descriptions of some our more noteworthy recent transactions that helped ensure healthy communities and strong local economies.
Madison Heights Phase I and Phase II, Avondale, AZ
Nearly $3 million in loans from CDT was key to giving a 45-year-old low-income housing complex in Avondale, Arizona, new life. CDT provided the loans to Gorman & Co. Inc., which transformed the site of the former 77-unit Madison Heights public housing development into 143 one- to four-bedroom apartments.
The development, the first in Arizona to use HUD’s Rental Assistance Demonstration program, was 100 percent leased by the time of completion in December 2016. All of the units are for residents earning 60 percent or less of area median income, with 30 units set aside for the chronically homeless.
Socorro Palms Apartments, Socorro, TX and Homestead Palms Apartments, El Paso, TX
CDT loans totaling more than $6 million have helped Tropicana Building Corp. meet housing needs in two Texas communities. Tropicana developed Socorro Palms Apartments in Socorro and Homestead Palms Apartments in El Paso.
Socorro Palms offers 110 low-income tax credit units and 42 market-rate apartments. The property features a fully equipped playground, basketball court and five gazebos outfitted with barbecue pits and picnic benches. Free support services provided at the property include homebuyer counseling, legal assistance and nutrition counseling.
Homestead Palms Apartments provided 48 affordable units to low and moderate income families. In cooperation with various local social services organizations, Homestead Palms hosts classes that help residents receive their GED and earn English as a second language.
Ridge Top II Apartments, Leavenworth, KS
With a $2 million forward commitment to Pioneer Group Inc., CDT is playing a role in finding new uses for history-rich edifices in Leavenworth, Kansas. Pioneer has already renovated 24 of 38 buildings on the Leavenworth Veterans Affairs campus, including the 49-unit Ridge Top Apartments complex, which is 100 percent occupied by veterans and veteran families.
The Ridge Top II development involves the long-term lease and renovation of six historic buildings on the Leavenworth campus that were vacated in 1995. All six buildings were structurally sound but needed significant rehabilitation work. Following rehabilitation, the buildings will offer 67 one- and two-bedroom units to households earning 60 percent or less of the average median income. The property will be designed as a family complex and rented with a preference for veterans, helping meet what the federal government has described as a need for more veteran housing in the Leavenworth and Greater Kansas City area.