Austin MF Lands LIHTC Financing

AUSTIN, TX—Oak Creek Village, an affordable multifamily development under development at 2324 Wilson St. here, has landed a financing package via PNC Bank. The package for developer 2013 Travis Oak Creek L.P. includes a $27.3-million unfunded forward commitment through Fannie Mae‘s 9% Low Income Housing Tax Credit program with a mortgage-backed securities execution.

PNC is the tax credit investor with a direct investment of $18.7 million, while PNC Capital Markets LLC is the private investor in the Fannie Mae mortgage-backed security. “This is an exciting milestone in securing Fannie Mae 9% LIHTC loan, and creating a market which would allow for a MBS forward purchase for several years out,” says Mark Ragsdale, SVP of agency finance at PNC Real Estate. PNC’s structured products trading desk understood the complexities and the opportunity, and designed a viable, affordable housing financing with competitive proceeds and a long term permanent interest rate.”