It was a very good year for business development as we added the following new projects to our deal pipeline:
- Section 202/223(f) Refinance – Illinois
- Section 223(f) Affordable Housing Refinance – Pennsylvania and New York
- Section 242/223(f) Hospital Refinance – Guam
- Section 232/223(f) Bridge-to-HUD – Pennsylvania, California and Iowa
- Section 223(f) Age-Restricted Housing Refinance – Ohio
Our consulting successes led to higher leveraged, expanded opportunities for affordable housing clients – and future loan originations for Sims Mortgage Funding.
Phoebe Apartments – 131 Unit Age-Restricted Community built in the early 1970s; had only 26 Section 8 Project-Based Vouchers
- Original Section 202 Direct Loan matured in January 2024.
- Project in need of renovations, repairs and improvements to benefit residents.
- SMF recommended pursuing Tenant Preservation Vouchers that led to the award of 96 Vouchers that added Section 8 rent subsidies and rent increases for the 26 in-place units.
- Project is now primed to recapitalize to approximately $10 million for use at the Project and the larger Phoebe organization.
Baptist Home – 100-unit former HUD Section 202 Project refinanced in 2006 and incorporated into an Obligated Group with a large continuing care retirement community (CCRC).
- The Sponsor is looking for ways to finance improvements/expansion to the Project and to generate working capital to promote additional affordable housing development.
- Project had a Section 8 HAP Contract at below-market rents.
- We identified a way to increase revenues through a Mark-Up-to-Market (MUTM) renewal; we prepared the proposal and obtained approval from HUD for higher rents.
- Project’s debt capacity has doubled to approximately $6 million, providing a capital platform for renovations/future development.
We look forward to translating 2024’s business and consulting successes into loan closings in 2025 and beyond!
