MIDDLETOWN and SMYRNA, Del. — Lument has provided an $8 million Freddie Mac unfunded forward commitment loan to the Delaware State Housing Authority (DSHA). The permanent financing will pay off construction and renovation debt for a portfolio of three properties.
The 106-unit portfolio being renovated comprises Holly Square in Middletown and McLane Gardens and Peach Circle, both in Smyrna. The renovation project consists of substantial interior and exterior upgrades, as well as improved ADA compliance and accessibility for seniors.
The three properties will convert from public housing to Section 8-assisted affordable housing. Further, all 106 units will now feature 20-year housing assistance payments (HAP) contracts through the Rental Assistance Demonstration (RAD) program.
The three-property portfolio received an allocation of 4 percent Low-Income Housing Tax Credits (LIHTCs) that will restrict units at affordable levels based on the area median income (AMI). Holly Square and Peach Circle will be reserved for seniors aged 62 and older, with McLane Gardens having general occupancy.