National commercial and multifamily mortgage banking company Bellwether Enterprise this month secured $15.25 million in permanent loans to finance affordable and senior housing communities in Austin, TX, Douglasville, GA, and Mobile, AL.
According to BWE, the transactions represent some of the first multifamily loans under the Department of Housing and Urban Development’s RAD for PRAC (Rental Assistance Demolition for Project Rental Assistance Contract) program. RAD for PRAC is meant to preserve existing Section 202 Supportive Housing for the Elderly properties as well as create new Section 8 housing across the country.
“For aging portfolios in need of repairs and refinancing, RAD for PRAC is a powerful tool to inject new capital into affordable housing properties. BWE is proud to execute the first-ever RAD for PRAC deal in Alabama and among the first in Georgia and Texas,” Jon Killough, executive vice president in BWE’s Montgomery, AL, office, said in a press release. “As we look for new ways to combat the housing crisis, we will continue to lead the way in utilizing RAD for PRAC to bring much-needed financing to affordable housing across the country.”
BWE’s RAD for PRAC funding will help Fishers, IN-based AHEPA Senior Living revitalize three of its communities in Mobile, AL. ASL operates 18 affordable senior housing communities in Alabama, with a total of 920 units.
The current $6 million funding through BWE is part of ASL’s multipronged renovation plan for the three buildings. ASL previously closed on $25.18 million of the funding.
The project is expected to be completed in February 2025, “and this work will also make the living experience at AHEPA 310 V-VII vastly superior to what it was pre-renovation,” ASL Government Affairs Senior Director Andrew Kaffes told the McKnight’s Business Daily.
The project will include, among other renovations, HVAC and electrical upgrades to refurbish outdated systems, elevator modernization and general carpentry, he said. Approximately $400,000 will be set aside for flooring, $600,000 will be spent on painting and interior decorating, more than $850,000 will be allocated to plumbing and hot water renovations, and more than $600,000 will be reserved for aesthetic improvements such as carpet upgrades, blinds, shades, artwork and appliance upgrades, Kaffes added.
BWE also arranged for a $7.75 million loan to finance construction of Sweetwater Point, a 96-unit “garden style” affordable senior housing community in Douglas, GA. The loan was originated with Freddie Mac and has a 17-year fixed-rate term with a 40-year amortization.
Additionally, BWE arranged a $1.5 million HUD-insured Section 221(d)(4) loan to finance the construction of a 27-unit affordable senior living apartment building in Austin, TX. The apartments at La Vista de Lopez will be for residents earning 50% of the area median income or less.
The development also has received a HUD Section 202 Capital Advance loan, and it is the first multifamily property in the country to combine an FHA-insured new construction mortgage with a new Section 202 Capital Advance, BWE said. The Section 221(d)4 loan has a 40-year term with a 40-year amortization period.
