Tax-Exempt and Taxable Bond Transaction Finances Significant Portion of Construction Costs
NEW YORK, Oct. 27, 2020 (GLOBE NEWSWIRE) -- Greystone affiliate, America First Multifamily Investors L.P. (ATAX), has provided $22 million in tax-exempt and taxable bond financing for the $28.7 million construction of a 75-unit affordable housing property in Brawley, CA. The transaction was originated by Frank Bravo, senior vice president and originator at ATAX.
Pacific West Communities, based in Idaho, will benefit from the ATAX construction financing with a 24-month term and paydown of tax credit equity, and additional equity from a low-income housing tax credit investor. The project will be funded by $15 million in tax exempt bonds and $7 million in taxable bonds, to be privately placed with ATAX.
The planned property, Ocotillo Springs Apartments, will provide low-income housing for residents meeting 30-60% Area Median income (AMI). The apartment complex, to be comprised of four three-story buildings, is intended to be net-zero-energy and is funded in part by a grant received from the State of California’s Greenhouse Gas Reduction Fund in 2019. The property will include a 3,000 sq. ft. community building with test kitchen, lab, playground, swimming pool, bike storage, fitness center, and BBQ areas. The Town of Brawley is located in Imperial County approximately 130 miles due East of San Diego, CA.
“Orchestrating this transaction for Pacific West Communities ensures that new affordable housing will be added to the depleted stock we have today in the U.S., and it also illustrates the importance of the 4% tax credit,” said Mr. Bravo. “In collaboration with Greystone, ATAX has created a one-of-a-kind financing product that will make these types of transactions possible.”
Greystone is the #1 provider of HUD-insured multifamily loans, a top provider of Fannie Mae and Freddie Mac affordable housing loans, and acquired the parent of the General Partner of America First Multifamily Investors, L.P. in 2019. ATAX manages over $1 billion in assets consisting primarily of mortgage revenue bonds intended for multifamily affordable housing construction and permanent financing.
About America First Multifamily Investors, L.P. (ATAX)
America First Multifamily Investors, L.P. was formed on April 2, 1998 under the Delaware Revised Uniform Limited Partnership Act for the primary purpose of acquiring, holding, selling and otherwise dealing with a portfolio of mortgage revenue bonds which have been issued to provide construction and/or permanent financing for affordable multifamily, student housing and commercial properties. The Partnership is pursuing a business strategy of acquiring additional mortgage revenue bonds and other investments on a leveraged basis. The Partnership expects and believes the interest earned on these mortgage revenue bonds is excludable from gross income for federal income tax purposes. The Partnership seeks to achieve its investment growth strategy by investing in additional mortgage revenue bonds and other investments as permitted by the Partnership’s Amended and Restated Limited Partnership Agreement, dated September 15, 2015, taking advantage of attractive financing structures available in the securities market, and entering into interest rate risk management instruments. America First Multifamily Investors, L.P. press releases are available at www.ataxfund.com.
Greystone is a leading national commercial real estate finance company with an established reputation as a leader in multifamily and healthcare finance, having ranked as a top FHA, Fannie Mae, and Freddie Mac lender in these sectors. Loans are offered through Greystone Servicing Company LLC, Greystone Funding Company LLC and/or other Greystone affiliates. For more information, visit www.greystone.com.
Safe Harbor Statement
Information contained in this press release contains “forward-looking statements,” which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, risks involving current maturities of our financing arrangements and our ability to renew or refinance such maturities, fluctuations in short-term interest rates, collateral valuations, mortgage revenue bond investment valuations and overall economic and credit market conditions. For a further list and description of such risks, see the reports and other filings made by the Partnership with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2019 and its Quarterly Report on Form 10-Q for the period ended June 30, 2020. The Partnership disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.