Featured Preservation Deal

Doan Classroom Apartments

Doan Classroom Apartments is a 45 unit affordable housing project located in Cleveland, Ohio in Cuyahoga County. Originally constructed in 1905 as an elementary school, the property had a 3rd floor expansion in 1907 and wing expansions constructed on the north and south sides in the 1950's. In 1985, Doan Classroom was converted into an affordable apartment building by a private developer utilizing HUD Mod Rehab funding and received a HUD Project Based Section 8 HAP Contract. In 2008, HUD began the foreclosure process and the building was vacated. As part of this foreclosure action, the City of Cleveland acquired the property from HUD and transferred the asset to Famicos Foundation through its right-of-first refusal agreement with HUD for rehabilitation and future affordable senior housing.

As part of the financing of Doan Classroom Apartments, the developer and property manager, Famicos Foundation, secured NSP Commitments from the City of Cleveland, Cuyahoga County and the State of Ohio. Additionally, the project utilized Short Term Multi-Family Revenue Bonds from the Cuyahoga Port Authority and 4% Low Income Housing tax Credits. The project has no permanent, must pay, amortizing debt and 100% HUD Section 8 Rental Subsidy.

Doan Classroom is an individually-listed landmark on the National Register of Historic Places. The project provides 4 efficiency units (approximately 400 square feet in size) and 41 one-bedroom units (approximately 600 square feet in size) for the elderly.

 

Berwick Hotel

Borrower Name: Berwick Hotel Apartment Limited Partnership

Loan Amount: $536,006.94

Loan Type: Preservation Equity Bridge Loan

The Berwick Hotel is a historic three and four story apartment building, consisting of 49 assisted units in Cambridge, Ohio. The project is owned and managed by Wallick-Hendy Properties.

The rehabilitation of the Berwick Hotel will result in additional space for a new exercise room, a new computer room, additional space for on-site management and a reconfigured entryway into the building. The new unit count will be comprised of 3 efficiencies, 44 one-bedroom units and 1 two-bedroom unit. Importantly, all of the units at the Berwick Hotel have Project-Based Section 8 subsidy and are targeted to low-income senior residents. Additionally, the building is mixed-use, containing four ground-floor commercial units totaling 2,373 square feet.

The preservation equity bridge loan from the Ohio Preservation Loan Fund (OPLF) is for purposes of bridging in equity from the Ohio Equity Fund during the construction period.

Ideally located on the northwest corner of Wheeling and North Sixth Streets downtown, the building is adjacent to the main commercial corridor and the historical, mixed-use district. Very walkable for residents and visitors; in close proximity to retail, medical and financial service facilities; the preservation of the Berwick Hotel was very important to the senior residents and downtown Cambridge.

 

Hi-Land Terrace and Golden Manor

The Ohio Preservation Loan (OPLF) fund is pleased to be providing predevelopment and acquisition financing to the North Columbus Jaycees Housing and Development Foundation (NCJC), an Ohio nonprofit corporation that provides affordable housing for seniors. The financing will help preserve a 48-unit family project and a 44-unit senior project, both located in Hillsboro, Ohio.

Through the Preservation Loan Fund, NCJC received funding totaling $1.368 million for predevelopment and acquisition loans to begin the rehabilitation and refinance process for two projects, Hi-Land Terrace and Golden Manor.

The projects intend to apply to OHFA for HDAP funding in July/August 2011. Upon receipt of the funding, the projects will be combined into a new partnership, utilize 4% low income housing tax credits, tax exempt bonds and a FHA 221(d)(4) mortgage to complete a rehabilitation of the projects.

Both projects have project-based Section 8 contracts. Hi-land Terrace has gone through the Mark-to-Market program and received a new 20-year Section 8 contract, which will expire February 29, 2028 subject to annual renewal. Golden Manor has three years remaining on its Section 8 Contract and expires in May 2014. HUD's Columbus Multifamily HUB office has provided an "Offer of Intent to Extend" the Section 8 contract for Golden Manor upon the expiration of the contract.

Without the Ohio Preservation Loan Fund, these projects would most likely have been sold to a for-profit developer and lost as affordable housing in Hillsboro.

 

Community Housing Network Scattered Sites

The Ohio Preservation Loan fund is pleased to be providing acquisition financing to the Community Housing Network, a non-profit company that provides safe affordable rental housing and linkage to supportive services for people with disabilities and other special needs such as homelessness. CHN serves as a developer, owner and property manager, and facilitates access to rent subsidies and private housing in Columbus and Franklin County Ohio.

Through the Preservation Loan Fund, CHN received funding for 6 acquisition loans totaling $2,993,856 to begin the rehabilitation and refinance process of 222 units. CHN used the proceeds of the Preservation Loan to pay off an existing 1997 issuance of tax exempt bonds so the units could be split into six manageable projects, apply for LIHTC and reduce the carrying costs of the project during the transition.

These six projects are expected to be financed with LIHTC's over the next three years. Each project will have project based Section 8 subsidy providing affordable housing to those most in need (below 30% of AMGI) in perpetuity. The scattered site projects are located in six distinct Columbus neighborhoods and have total projected rehabilitation costs of $49M.

 

OPC Project Highlights

Arcadia Before	Arcadia After
Dresden Before	Dresden After
Virginia Before	Virginia After
Yearling Before	Yearling After