Preservation Transaction Combines Tax Credits, Section 538 Loan

摘要

Chicago-based General Capital purchased Whispering Hills, a 72-unit rural housing project in Port Byron, 111., with a combination of 9 percent low-income housing tax credits and a guaranteed Section 538 mortgage in a preservation transaction that resulted in nearly $45,000 in rehabilitation per rental unit. Built in 1977-78, the project's Section 515 mortgage had about seven years remaining on the loan term, which was reset to a 40 years in the refinancing. The Section 538 loan primarily filled the financing gap between the tax credit equity and the amount needed to complete repairs.