Red Stone Provides Funding for Preservation of Affordable Senior Communities in Los Angeles
Written by Gobi Moore on August 17, 2017
LOS ANGELES, CA – Red Stone Tax-Exempt Funding recently closed the following tax-exempt bond transactions via its Red Stone Direct Bond Purchase Program. An affiliate of Red Stone acquired $18.785 million of tax-exempt bonds, the proceeds of which will provide mortgage capital for the acquisition, rehabilitation, and permanent financing of a 90-unit portfolio of three affordable senior citizen rental developments in the Los Angeles Metro.
The properties all benefit from Section 8 rental subsidies that were extended for 20 years to ensure the long-term affordability of the communities for the low-income senior tenants. The bond financing for these communities was done in three separate yet similar issuances allowing the flexibility for each transaction to close on its own timeline while minimizing transaction costs.
The properties, Pacific Rim Apartments, Rancho Del Valle and Maple Park Apartments, will benefit from modernization via significant rehabilitation budgets exceeding $35,000 per unit. The transaction will not only allow the recapitalizations of these properties, but will also ensure 20+ year renewals of their Section 8 Housing Assistance Payment (“HAP”) Contracts, which provide rental assistance for the properties’ senior tenants.
The rehabilitation of the properties will be done by BlueGreen Preservation and Development, LLC. BlueGreen is a California based industry leader in developing and preserving affordable housing with extensive experience in a range of developments. They will partner with the community’s local non-profit to ensure that the specific needs of the elderly residents are addressed in the renovation.
“BlueGreen is grateful for the opportunity to preserve these existing affordable housing projects,” said Vivian Lum, Chief Executive Officer of BlueGreen. Ms. Lum continued, “we are thankful for the confidence placed in us by our lending partner, Red Stone, as well as by the non-profit owners and we look forward to continuing our relationship with Red Stone to further our mission of rehabilitating the existing stock of affordable housing nationwide.”
Brian Renzi, Managing Director of Red Stone, added, “Red Stone is proud to provide financing for the preservation of affordable communities for our older generations, such as these.” Mr. Renzi also added, “the capital work planned by BlueGreen will preserve these communities for the long term and provide not only affordable housing, but high-quality affordable housing for the low-income senior tenants.”