HOUSTON — Hunt Capital Partners has arranged $7.2 million in Low-Income Housing Tax Credit equity (LIHTC) financing for the acquisition and rehabilitation of Anna Dupree Terrace in Houston.
The development serves elderly households, whose tenants are 62 years or older or who have disabilities. Originally constructed in 1981 by the Eliza Johnson Center for the Aging, the community features 151 units in a single three-story building. The property also features a 12,600-square-foot multi-purpose building.
The rehabilitation will update the apartment units, common areas, and building systems in the residential building as well as the grounds and exterior paved areas. Additionally, a new office and community space will be constructed at the residential building’s main entrance.
“The Houston area has been substantially affected by numerous hurricanes in recent years, including Hurricane Harvey, which damaged over 200,000 homes when it made landfall in August 2017,” says Dana Mayo, Hunt Capital Partners executive managing director. “The redevelopment of Anna Dupree Terrace will help restore quality affordable seniors housing to the city.”
Construction work for Anna Dupree Terrace began December 2018 and is scheduled for completion May 2020. Once completed, the community will feature modern amenities and consist of 42 studio units, 102 one-bedroom units, six two-bedroom units, and a single rent-free unit for an on-site employee. All units will be restricted to households who earn up to 60 percent of the area median income and be subsidized by a project-based Housing Assistance Payments contract.
The total development cost for Anna Dupree Terrace is $23.8 million. Hunt Capital Partners facilitated the investment of federal tax credit equity through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 27.
Bill Elsbree, J. Allen Affordable Housing Development LLC and Jeshurun Development LLC are the developers. MEK Construction Ltd. is the general contractor, Mucasey & Associates is the architect, and Creative Property Management Co. is the property manager.
Other financing partners include Compass Bank, which provided a $12 million tax-exempt construction loan; HUD, which provided an $8.8 million permanent loan; and the Eliza Johnson Center for the Aging, which provided a $5.1 million acquisition loan.