DALLAS — Lument has provided $25 million in short-term bonds and a $22.1 million Freddie Mac unfunded forward loan for The Oaks, a mixed-income seniors housing development in Dallas
The borrowers are co-developers DHA Housing Solutions for North Texas and the Volunteers of America National Services (VOANS). Tracy Peters, senior managing director, and Dale Giffey, associate director, led the transaction for Lument.
The Oaks is being co-developed by DHA and VOANS, the latter of which is also the sponsor and guarantor. DHA is the tenth largest housing authority in the country, providing housing assistance in North Texas to more than 54,000 people annually through its Public Housing and Housing Choice Voucher programs. In addition, DHA provides more than 2,000 units of workforce housing through its owned-housing and partnerships with private developers.
Construction on The Oaks is slated for completion in 2023. Upon stabilization, the $22.1 million Freddie Mac loan and tax credit equity will be used to pay off a $35 million construction loan from a national bank. The financing structure also includes subordinate debt of $4.5 million from HOI Inc., the bond issuer, and $750,000 in Capital Magnet Funds from VOANS.
The Oaks will consist of 260 units for residents aged 62 or older. Over 90 percent of the units will have income or rent restrictions, with 216 units serving seniors earning at or below 60 percent of area median income (AMI) and 27 units serving seniors earning at or below 30 percent of AMI. In addition, DHA will provide project-based vouchers (PBVs) for 103 of the units and public housing subsidy for 27 units.
VOA-Texas will manage the four-story community.