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DALLAS-The nonprofit Dallas City Homes will deliver a needed affordable housing project to the region in December 2002. The latest undertaking is the Flats at Five Mile Creek, a 152-unit community that is projected to rent for 78 cents per sf.

The ground-breaking came within days of a final signing on a $7.9-million loan obtained through New York City-based Metropolitan Funding Corp. The loan, handled by the Ft. Worth HUD office, was stalled due to a federal funding crunch. Once the feds got straightened away on a credit subsidy dispute, the decks were cleared for approval. “We were able to close right away,” David Stein, Metropolitan Funding vice president, tells GlobeSt.com.

The HUD/FHA financing entailed construction and permanent financing for the seven-building complex being built on seven acres. The units are one-, two- and three-bedroom designs and will be supported by a clubhouse, swimming pool, fitness center and playground.

Dallas City Homes signed a non-recourse, 40-year mortgage at a fixed 7.125% interest rate, which covers 98% of the project’s costs. The nonprofit will only pay interest during the 14-month construction period.

The Flats at Five Mile Creek is a design of Stone Lowrey Architects of Dallas. Northwest Construction Co. of Garland is the general contractor.

According to Carrollton-based M/PF Research Inc.’s third-quarter report, the bulk of the 13,082 units under construction in the Dallas-Ft. Worth metroplex are class A products. That makes the Flats at Five Mile Creek a surefire high-demand development. The average monthly rent is resting at $709 per month whereas newer units are drawing an average of $970 in a market that’s 94.6% occupied, statistics lending support to the region’s affordable housing demand.

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