Developer Provident Realty Advisors Inc. of Dallas will deliver the first units of the 12-building gated community in summer 2004, GlobeSt.com is told. The Quail Creek project, being built by Global Construction Co., is being funded in part with $14.3 million of tax-exempt bonds with a 6.75% interest rate, $1.8 million of taxable bonds at 8.75% and developer's fees that include an $800,000 earn-out account, according to the Texas Department of Housing and Community Affairs. The taxable bonds mature in four years and the tax-exempt package in 40 years, with a 40-year amortization. State records show the annual payments will be more than $1.1 million.

Charter Municipal Mortgage Acceptance Co. and affiliate Related Capital Co., both headquartered in New York City, provided debt and equity financing for the just-started project along Brinker Road, a half-mile east of Interstate 35 and right in the retail heart of the college town. The breakdown is that CharterMac financed $16.1 million through revenue bond investments and Related Capital kicked in $8.3 million in equity for tax credits.

Leon J. Backes, Provident's president, said in a release that the community "will compete extremely well against both affordable and market-rate complexes." The affordable housing application supports Backes' claim, noting that the finished product will bring rents of $680 to $839 per month or the maximum allowed for an affordable housing project.

The development will contain 78 two-bedroom, two bath apartments in a 960-sf design; 159 three-bedroom, two bath, 1,120 sf; and 27 four-bedroom, two bath, 1,260 sf. In all, there will be 11 residential buildings and a 5,000-sf community center. All units will target families earning 50% or less of the area median annual income, which for a family of four hovers around $40,000.

Founded in 1991, the developer also recently set up an affiliate, Provident Odyssey Partners LP, to participate in the financing and development of affordable housing communities for Provident nationwide.