SAN FRANCISCO, CA-Red Capital Group LLP has provided $73 million for the refurbishment of a low-income housing complex in this bay-view city. Working through its bond underwriting and mortgage banking units, Red Capital provided what it called a “creative combination of bond underwriting and mortgage banking services related to the substantial rehabilitation of a low income multifamily/seniors housing property” in San Francisco’s SoMa District.
The transaction is a case in point of the extreme complexity of low-income housing finance, when multiple lenders and/or subsidy sources are needed to complete the financing.
The complex deal used $33.2 million in a conventional, taxable, GNMA-backed FHA loan. The loan was both processed and funded by Red Mortgage Capital LLC and held as collateral for a little more than $16 million in short-term, tax-exempt multifamily housing revenue bonds, underwritten by Red Capital Markets LLC. The loan will "bridge" the proceeds of the sale of 4% Low Income House Tax Credits, provided by Bank of America.
The SoMa rehab financing structure also includes $16.5 million of New Issue Bond Program proceeds. The loan is part of a special, temporary program launched by the U.S. Treasury to support the development of new or rehabilitated affordable multifamily rental units
Woolf House is a 182-unit, high rise structure located on Howard Street near the Moscone Center and several blocks distance from the Financial District. Eight studio units and 174 one-bedroom units comprise the community. All units are offered to low and moderate income seniors who earn 50% or less of area median income levels and are at least 62 years old. Rents for qualifying tenants do not exceed 30% of renters’ household income. .
The project sponsor is TODCO Group, a community-based nonprofit institution whose mission as “South of Market Neighborhood Builders” is to “maintain SoMa’ longtime working class, immigrant, and elderly communities as an integral part of their neighborhood’s future,” according to a company statement.
Calls to Red Capital for further information were not returned.
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