LIHC Investment Group Secures $51M in FHA Financing for Two Affordable Communities
Rockport Mortgage Corp. closed a $24-million FHA loan for the. Verona Senior Citizens Apartments in Verona and $27 million in FHA financing for Mansion Apartments in Pine Hill.
VERONA, NJ—LIHC Investment Group of Portland, ME, has secured $51 million in two FHA Section 223(f) refinancing loans for two of its New Jersey multifamily properties.
Rockport Mortgage Corp. of Gloucester, MA closed a $24-million FHA loan for the. Verona Senior Citizens Apartments in Verona and $27 million in FHA financing for Mansion Apartments in Pine Hill.
Situated on five acres and constructed in 1981, Verona Senior Citizens Apartments is a 160-unit, age-restricted, subsidized Section 8 development comprised of studio and one-bedroom units within one mid-rise building.
Loan proceeds will be used to refinance existing debt, upgrade units, and update the building. Project work includes kitchen and bathroom renovations in all units as well as new vinyl flooring in half of the units not previously upgraded. The building will be updated with new main entry doors, a new emergency generator, a new energy recovery ventilation unit and an upgraded security camera system.
Mansion Apartments is a 360-unit, subsidized Section 8 development comprised of one and two-bedroom apartment units located within 19 two-story multifamily buildings and one, two-story management office/community room. Less than 20 miles from Philadelphia, the buildings were constructed in 1973 on approximately 25 acres.
Loan proceeds will be used to finance repairs, building and unit upgrades and fund the replacement reserve account. Building and unit upgrades include renovations to kitchens and baths in all units, the installation of new HVAC in half of the units, new patio doors for the buildings, a new emergency generator, sewage pump lift station and accessibility upgrades.
In connection with the refinancing of Verona Senior Citizens Apartments and Mansion Apartments, LIHC Investment Group entered into new 20-year project-based Section 8 contracts and agreed to further extend these new contracts by the number of years remaining on the prior Section 8 contracts. Effectively, the new contracts ensure that Verona Senior Citizens Apartments will remain affordable for 31-years and Mansions Apartments will remain affordable for 39-years.