The non-profit organization acquired Las Americas apartments at 5909 Glenmont in 1997, securing a loan for more than $6 million for acquisition and rehabilitation of the holding. Ralph Daruns, regional director for Arbor Commercial Mortgage LLC in Dallas, arranged the second mortgage. Daruns tells GlobeSt.com that the loan has a 29-year amortization on a 30-year schedule at 8.63% interest. The loan is coterminous with the bond credit enhancement and first mortgage lien placed by Arbor and Fannie Mae in 2000.

Daruns says La Americas is a great example of how Fannie Mae and DUS lenders meet the needs of the affordable housing industry. According to Daruns, the non-profit bought the complex in a HUD foreclosure.

The Hispanic Housing and Education Corp.'s projects have been recognized by HUD as models for low-income housing apartments. The Houston owner has more than 700 low-income multifamily units in its portfolio, each complex offering social services, educational and economic programs for residents.

The Las Americas rehabilitation included building a pre-kindergarten and kindergarten facility on the grounds. The educational component was subsequently leased to the Houston Independent School District as it sought ways to set up more elementary schools in low-income areas, Darens says. Community services, such as a summer lunch program and scouting organizations, as well as other educational venues also were made part of the day-to-day lifestyle offerings for Las Americas' residents. The complex is in the midst of building a three-story charter middle school that will accommodate about 300 students.