Sims Mortgage Funding Recapitalizes Three Affordable Housing Projects in Minnesota

SAUK RAPIDS, Minn. — Sims Mortgage Funding (SMF), a subsidiary of HJ Sims, has provided a $2.4 million recapitalization for Good Shepherd Apartments, an elderly housing community located in Sauk Rapids, approximately 70 miles northwest of Minneapolis.

Good Shepherd was built in 1979 and financed with a Section 202 Direct Loan.  All units are covered with a Section 8 housing assistance payment contract. Located on the same campus are two additional Section 202 projects, which were financed by HUD under the Capital Advance program.

Good Shepard Communities owns the properties and sought capital to make improvements. SMF originated the loan under the HUD Section 223(f)/202 program. Proceeds were used to prepay a previous loan, fund $343,600 into a reserve fund and establish a repair escrow of $482,700. The underwriting also generated additional loan proceeds to fund $594,000 in capital improvements for the communities.

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