Love Funding Closes $97.3M in HUD Loans in Second Quarter

WASHINGTON, D.C. — Love Funding has provided more than $97.3 million in HUD financings in second-quarter 2020.

All the loans feature long-term, non-recourse, fixed-rate debt solutions. D.C.-based Love Funding’s parent company, Midland States Bank, was able to complete short-term bridge loans to secure funding.

In the first transaction, Love Funding arranged financing for the $3.1 million acquisition of Egida Hogar San Antonio, a property located in Guayama, Puerto Rico. The borrower was able to acquire the Section 8 project and extend the affordability component by entering into a new 20-year HAP contract. The borrower was also able to realize additional savings through HUD’s reduced application fee incentive for projects located in a Qualified Opportunity Zone.

In the second transaction, Love Funding provided a $12.9 million refinancing for Woodlands of Arnold, an assisting living, memory care and skilled nursing facility located in Arnold, Missouri.

In a third transaction, Love Finding provided an $18.2 million HUD-insured loan for Chickasaw Place, a 272-unit, Section 8 project in Memphis, Tennessee. The financing was through HUD’s 223(f) program in conjunction with 4 percent Low-Income Housing Tax Credits with tax-exempt bonds allocated by the Tennessee Housing Development Agency and The Health, Education and Housing Facility Board of the City of Memphis. The HUD loan will be used to preserve and enhance the project with a scope of proposed renovation at approximately $34,800 per unit.

Love Funding also utilized HUD’s Interest Rate Reduction and 223(a)(7) programs to improve cash flows at six currently HUD-insured projects by taking advantage of the low interest-rate environment.