News - 2008
Phase Two of One of the Nation's Largest Low Income Housing Preservation Initiatives is Completed
RED Provides FHA 221(d)(4) Loan for Scattered Site Units in Ohio
Columbus, OH, April 8, 2005 – Red Mortgage Capital, Inc., the mortgage lending arm of integrated capital provider RED CAPITAL GROUP and the country’s 4th ranked FHA lender, recently provided FHA 221(d)(4) acquisition/rehabilitation financing under the Multifamily Accelerated Processing (MAP) program for a scattered site project in Columbus, Ohio.
Spruce Bough Homes, which was acquired by local non-profit Columbus Housing Partnership ("CHP"), consists of 112 one-, two and three-bedroom units scattered throughout twenty-four sites in four urban neighborhoods of Columbus. The Spruce Bough Homes units originally were part of a portfolio of 1,335 affordable housing units that were acquired in 2004 by Ohio Capital Corporation for Housing ("OCCH") in a transaction noted as the country’s largest scattered site Mark-to-Market preservation project. OCCH worked closely with several affordable housing partners, including CHP, to create various plans to preserve the housing in subsequent phases. Upon completion of all the phases, the effort will constitute one of the largest low income housing preservation initiatives in the nation.
The acquisition of units by CHP marks the 2nd phase of the massive revitalization plan in which the Spruce Bough Homes will undergo substantial rehabilitation at a cost of roughly $65,000 per unit. Prior to rehab, the predominant unit style was a freestanding townhouse built in 1895-1920 and last rehabbed in the late 1970’s or early 1980’s. Renovations will include the addition of air conditioning/central air, new bathrooms and showers, replacing carpet and tile, rewiring substandard electric services and installing GFI protectors and smoke detectors, window and hot water heater replacements, new roofing and more.
All 112 units receive Section 8 subsidy assistance and serve very low income households. The units are managed by Community Properties of Ohio Management Services, LLC, an affiliate of Ohio Capital Corporation for Housing.
Red Mortgage Capital, Inc., as the FHA/MAP Lender, processed a $2,600,000 non-recourse FHA mortgage loan through HUD Columbus. The Section 221(d)(4) mortgage loan will fully-amortize over 40-years and is backed by GNMA mortgage-backed securities. Additional sources of funds for the transaction were provided by 9% LIHTC equity proceeds syndicated through OCCH, Historic Tax Credit proceeds, and City of Columbus HOME Funds. The project enjoyed tremendous bi-partisan governmental support.
Hal Keller, President and CEO of OCCH said, "This is an historic opportunity to impact seven Columbus neighborhoods and preserve affordable housing for our citizens most in need. OCCH is excited to facilitate the involvement of CHP, a strong, local partner in affordable housing development."
Amy D. Klaben, President/CEO of Columbus Housing Partnership said, "Our mission is to strengthen communities and bring people home, and we are excited about the opportunity to do so with Spruce Bough. This renovation will do more than rehab 112 units of housing—it will provide a safe, decent and affordable home for families in our community."