MHCLF Newsletter 2017 3Q
In This Issue:
Brighton Housing Authority – $2,150,000 Acquisition Mini-Perm Loan
Q4 brought the long anticipated closing of an MHCLF loan to Brighton Housing Authority (BHA) for the acquisition of an existing multifamily LIHTC property known as Hughes Station. Loan funds will be utilized to buy the property, complete property improvements and recapitalize reserve accounts. The project seeks to stabilize and preserve a large inventory of housing units reserved for low- and moderate-income households within a low‐income neighborhood. Units are reserved for households at or below 60% AMI.
BHA has been relatively small with a portfolio consisting of a few single family rentals until the completion of the first phase of Libretto Apartments, an independent low‐income senior property that was placed into service in 2013. More recently, Brighton Village phase I and II were placed into service as low-income independent senior apartments. Hughes Station will further grow the balance sheet of the organization while it gradually builds internal capacities to meet future demand as the market continues to expand.
In addition to providing rental housing, BHA offers capacity building programs including Career and College Launch (CCL) and Biz Launch. CCL is designed to support post‐secondary students in their pursuit of college and/or technical training, while Biz Launch provides assistance to community members interested in establishing their own business. Both programs have proven to be effective in helping lower income community members move beyond high school and break the bonds of multigenerational poverty.
CASA of the 7th Judicial District
MHCLF closed its first ever loan in the City and County of Montrose by providing $160,000 in acquisition financing to Court Appointed Special Advocates for Children (CASA) of the 7^th Judicial District. The loan funds are being used to purchase an improved parcel for the construction of at least eight micro-homes and a possible community room to be known locally as “1^st Place on 2^nd Street “.
CASA is a nationwide network of 949 community based programs that recruit train and support citizen volunteers to advocate for the best interests of abused and neglected children in courtrooms and communities. CASA of the 7^th Judicial District was founded in 2000 to address the rising caseload of needs of children identified as victims of abuse and neglect across 6 counties including Delta, Gunnison, Hinsdale, Montrose, Ouray and San Miguel.
In 2014, the7th JD division of CASA developed a program to further assist youth transitioning out of foster care through life skills and employment training. The Youth Supportive Housing Initiative’s first project involved the construction of a tiny home by forty-one teens working under the supervision of skilled tradesmen from local businesses. The youth involved learned how to frame, plumb, wire, insulate and finish the home. The 1^st Place on 2^nd Street project now seeks to scale up this successful program through the development of an 8 unit, micro-home community that will provide affordable housing for youth turning 18 and transitioning to independence. Partnering with the Colorado Workforce Center, many of these same youth will participate in the construction, learning valuable trade and problem solving skills in the process.
The project site is centrally located and will offer an abundance of community amenities with convenient access to jobs, transit and public services. The site is also permit-ready with all utilities and off-site infrastructure in place, allowing construction to begin in March 2018. The loan will be repaid through an on-going capital campaign that has already accumulated $830,000 in commitments as well as a pending grant application to the Colorado Division of Housing.
MHCLF is proud to be a part of this innovative and exciting project that will provide much needed housing, training and support services for youth transitioning out of foster care in the Montrose area.
Funding Partners Update: Eagle Ranch Housing Corp. Chattel Lending Programs
Funding Partners’ residential team continued to expand their reach into the mountain region through a new partnership with Eagle Ranch Housing Corporation launched in Q4. This down payment assistance program offers loans of up to $10,000 to qualified buyers purchasing a primary residence within the Eagle Ranch subdivision in Eagle County. The loan can be structured as either, a low fixed rate monthly pay OR a deferred payment equity share.
Funding Partner’s Manufactured Housing Loan Program also continues to grow, offering loans statewide of up to $100,000 for the purchase, refinance or improvement of mobile homes. To be eligible, the home must be owner-occupied and household income must not exceed 80% of median in the county in which the home is located. Benefits of the program include fixed interest rates, no minimum credit score and affordable monthly payments. More information about these programs can be found online at www.fundingpartners.org/loan-programs/
MHCLF Operating Grants: THANK You FirstBank, US Bank, Bank of America and the PatLow Fund
MHCLF would like to thank FirstBank Holding Company, US Bank, Bank of America and the PatLow Fund for their generous contributions of funds in 2017 to support general operations. FirstBank’s recent $20,000 operating grant and US Bank’s $25,000 donation represent the latest in a long history of awards from each, demonstrating their ongoing commitment to MHCLF’s mission. Bank of America and the PatLow Fund also provided contributions of $5,000 each in general operating support.
Operating support gives us the ability to broaden our impact in the community, attract additional loan fund capital, provide additional technical assistance and build a strong operating infrastructure. MHCLF is sure to see many financing needs and challenges in 2018 and beyond these contributions will help us meet those needs.
MHCLF greatly appreciates the continued support of our financial and community partners and their commitment to our mission of creating economic opportunity to low-income families and individuals throughout Colorado.