News - 2008
2006-056
Columbus Metropolitan Housing Authority Creates 100 Units of Seniors Affordable Rental Housing Utilizing Bonds and LIHTC's
Red Structured Similar Financing for CMHA in 2005
Columbus, OH, January 3, 2007 - Red Capital Markets, Inc. (MEMBER FINRA/SIPC), the investment banking arm of comprehensive capital provider RED CAPITAL GROUP, recently structured and underwrote a $7,000,000 issue of tax-exempt bonds for an affiliate of the Columbus Metropolitan Housing Authority ("CMHA").
Worley Terrace Apartments is a 100-unit community for elderly residents that is being builtnear downtown Columbus, Ohio. The modern, elevatored structure will be comprised of one-bedroom units with a secured central entrance when it is completed in December 2007. The new project will be operated as a public housing community, financed with a combination of public housing capital grant funds, low income housing tax credits and tax-exempt housing revenue bonds. Rents for qualified residents, including utilities, will not exceed 30% of a resident's annual income.
The project is unique in that it replaces an outdated building that had occupied the site previously and was removed after receiving approval from the U.S. Department of Housing and Urban Development.
The financing structure was devised and implemented for CMHA by Red Capital Markets, Inc., who provided bond underwriting services, and Ohio Capital Corporation for Housing, who syndicated 4% tax credits to benefit the project. The County of Franklin served as issuer of the $7 million in tax-exempt bonds. As a result of the financing, the new property also will benefit from enhanced replacement reserve funds, which will help sustain its ongoing viability as a future source of affordable housing for seniors.
Metropolitan Housing Partners, Inc. ("MHP"), an affiliate of CMHA, is the managing member of the owning entity created to develop the project. CMHA has 65 years of experience in managing public housing projects and currently manages approximately 3,500 units in 29 public housing projects.
Dennis Guest, Executive Director of the Columbus Metropolitan Housing Authority said, "Obviously, devising a mixed-financing agreement involving public housing funds, tax credits and tax-exempt bonds to produce 100 quality apartments for our lowest income senior citizens is never easy. However, thanks to partners such as Red Capital, the bond financing was accomplished as efficiently, timely and cost effectively as my staff and I anticipated."
Tracy Peters, Managing Director of Red Capital Markets, Inc. said, "Once again, this property exemplifies CMHA's continued commitment to the housing needs of Columbus . CMHA leveraged existing financing resources to build what will be an affordable seniors housing asset on the west side of Columbus for years to come."
