Gene B. Glick Co. Uses a Mix of Strategies to Preserve Section 8 Project

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CARMEL, IND—The Gene B. Glick Co. tapped into a Fannie Mae mortgage-backed security and low income housing tax credits to finance the preservation of Carriage House of Evansville, a Section 8 housing development in Evansville, Ind. Mortgage banking firm Merchants Capital structured the $21.4 million in funding.

The execution used publicly-issued tax exempt bonds and 4% tax credit equity, provided by PNC Bank, to fund approximately $11 million in repairs, renovations and upgrades to the community. Carriage House of Evansville dates back to 1978 and serves tenants at 60% of the area median income or less.

Fannie Mae's M.TEB solution uses mortgage-backed securities to secure tax-exempt bonds, offering a lower interest rate and a loan-to-value (LTV) ratio of up to 90%. This execution can be used to finance the construction, acquisition or rehabilitation of multifamily affordable housing properties.

CRG Residential is the general contractor on the project. All units are being modernized using CRG's RAPID program, which renovates and modernizes units in days, limiting disturbance to existing tenants. Updates include new solid surface flooring, cabinetry and countertops, energy efficient light fixtures, appliances, doors and trim, and complete bathroom renovations.

Additional Carriage House of Evansville improvements include entry signage, asphalt and storm drainage repairs, roofing, modernized elevators and playground equipment, as well as the addition of a bark park, lakeside picnic area, fitness center and an internet cafe.