Lument recently announced the closing of a $5.9 million Fannie Mae affordable loan to fund the construction of Lynwood Senior Apartments, a to-be-built affordable seniors housing community in Denver, Colorado. Lument Director Tim Hoppin led the transaction.
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Construction of the community will be facilitated via a 30-month taxable forward commitment Fannie Mae affordable loan structured as a 9% low-income housing tax credit (LIHTC) mortgage-backed securities (MBS) exchange. The Fannie Mae loan features a low, fixed interest rate, 15-year term, and 35-year amortization. Additional funding sources include a construction loan from a national bank and equity from the syndication of low-income housing tax credits.
“The Fannie Mae forward commitment proved to be an ideal solution for the borrower in this situation, as it protects them from interest rate volatility by locking in a low interest rate and other key provisions prior to construction closing,” said Lument’s Hoppin. “The customized loan structure closed in a timely manner and allows the sponsor to proceed with the construction of this much-needed affordable housing community for seniors in the Denver area.”
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A garden-style multifamily community, Lynwood Senior Apartments will consist of 62 one- and two-bedroom units within one three-story building on a site that is 0.87 acres. Once construction is complete, the borrower will enter into an LIHTC Land Use Restriction Agreement (LURA) with the Colorado Housing Finance Agency (CHFA). The units are reserved for renters aged 55 and older, with 14 units restricted to renters at 30% area median income (AMI), 12 units at 40% AMI, 21 units at 50% AMI, and 15 units restricted to 60% AMI. Construction is expected to be complete in 2023.
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