News - 2008
071030
Red Capital Finances Second Phase of HOPE VI Community Sponsored by Housing Authority of the City of Hartford and The Community Builders
Dutch Point II
Hartford, Connecticut
(project Rendering)
Columbus, OH, October 30, 2007— Red Capital Markets, Inc. (MEMBER FINRA/SIPC), the investment banking entity of comprehensive capital provider RED CAPITAL GROUP, and Red Capital Community Development Company, LLC, provided low income housing tax credits ("LIHTC"), equity bridge and construction financing for the new construction of Dutch Point II in Hartford, Connecticut.
The property will consist of 54 affordable units with set asides for families earning 25-60% of the area median income. Forty-seven of the 54 units will also be HUD public housing. The 3.61-acre site will be developed with six residential buildings that will consist of apartment buildings, row houses, and town homes. Common amenities include dishwashers, porches, washer/dryers, a clubhouse/community room and playground. Supportive services include case management, education development, family support programs, leadership development and adult education classes.
Red Capital Markets, Inc. syndicated the property’s allocation of $12,213,960 in LIHTC. Red Capital Community Development Company, LLC will provide a $5,871,487 equity bridge loan and $1,500,000 construction loan for the property. The Housing Authority of the City of Hartford will provide a $1,401,594 loan sourced from a $20 million HOPE VI grant made by HUD. Dutch Point II will also receive $800,000 in HOME funds from the City of Hartford and $1,000,000 in HOME funds from the State of Connecticut. A $600,000 loan will be provided by Capital City Economic Development Authority and TCB Connecticut, will provide a $500,000 loan.
The project is sponsored by the Housing Authority of the City of Hartford and The Community Builders, Inc. ("TCB"). TCB specializes in HOPE VI revitalization projects and has been planning, developing and managing affordable housing for over 40 years. Dutch Point Management, LLC, will serve as the property manager.
Susan McCann, Director of Development-Northeast Region, The Community Builders, Inc. said, "Transformation of Dutch Point from an obsolete public housing complex to a modern mixed-income community integrated into the fabric of the existing neighborhood, was accomplished by listening closely to the needs of residents, local organizations and other stakeholders. The financing provided by Red Capital and other funders was critical to enabling TCB to implement the stakeholders’ vision of the revitalization of this major piece of the Sheldon/Charter Oak neighborhood of Hartford. The new Dutch Point is yet another asset and point of pride for residents of Sheldon/Charter Oak and the entire City of Hartford."
Bruce R. Sorota, Director, Red Capital Markets, Inc., said, "The Hartford Housing Authority and The Community Builders were very cooperative partners, working together to coordinate the various funding sources for the development of Dutch Point. We are thrilled to be part of such a distinctive development that all parties involved with its construction can be proud of."
