Yorkshire Terrace
The CDFI provided a $1,032,000 loan to refinance the first deed of trust on a 30-unit family rental housing project in Reno, NV. The project is composed of fifteen duplexes. The entire project is reserved for low- income families, with all of the units currently occupied by folks making less than 60% of the county median income. Two of the units are fully ADA compliant. Eight of the units are reserved for single head of household. Twenty-six of the units are three bedroom and four are four bedroom. Rents range from $394 per month for the smallest units to $703 for the largest. The project is six years old and in very good repair.
The previous loan had an interest rate of 8%. Our refinancing saves the Housing Authority an estimated $18,000 each year.
The refinancing increased the debt coverage ratio and assured long-term affordability.
Fannie Mae funds were used for $300,000 of the total loan amount with the balance being provided by other CDFI investors; primarily Charles Schwab Bank. Because the loan term exceeds the term of the Fannie investment, the CDFI secured a standby investment from Schwab to provided additional capital at the maturity date of the Fannie investment.
|
