DENVER — Lument has provided a $5.9 million Fannie Mae affordable loan to fund the construction of Lynwood Senior Apartments.
The property will feature 62 units of affordable housing for seniors in a three-story building on nearly an acre.
Construction of the community will be facilitated via a 30-month taxable forward commitment Fannie Mae affordable loan structured as a 9 percent Low-Income Housing Tax Credit (LIHTC) mortgage-backed securities (MBS) exchange.
The Fannie Mae loan features a fixed interest rate, 15-year term and 35-year amortization. Additional funding sources include a construction loan from a national bank and equity from the syndication of LIHTC. Tim Hoppin led the transaction for Lument.
“The Fannie Mae forward commitment proved to be an ideal solution for the borrower in this situation, as it protects them from interest rate volatility by locking in a low interest rate and other key provisions prior to construction closing,” says Hoppin.
Once construction is complete, the borrower will enter into an LIHTC Land Use Restriction Agreement (LURA) with the Colorado Housing Finance Agency (CHFA). The units are reserved for renters aged 55 and older, with 14 units restricted to renters earning up to 30 percent area median income (AMI), 12 units at 40 percent AMI, 21 units at 50 percent AMI, and 15 units restricted to 60 percent AMI.
Construction is scheduled for completion in 2023.