COLUMBIA, MD - Enterprise Community Investment, Inc., a national leader in affordable housing finance and community development, today announced the closing of a U.S. Department of Agriculture (USDA) Section 538 Rural Development loan, providing $1.1 million in financing for Meadowlane Apartments in Milton, Vermont. The financing is part of a $6 million renovation of the property by The Housing Foundation, Inc. and the Vermont State Housing Authority. The USDA Rural 538 program provides loans for acquisition, new construction and rehabilitation of affordable multifamily rental properties in rural areas throughout the country.
"Enterprise is committed to providing a variety of debt products and services to help create affordable housing opportunities for individuals and families in rural areas," said Lamar Seats, senior vice president for Multifamily Mortgage Finance at Enterprise Community Investment, Inc. "We are committed to helping developers of all types, nonprofit, for-profit or joint ventures, to build decent affordable housing in the communities that need it most."
Located at 36 Villemaire Lane, the Meadowlane Apartment complex currently includes 20 apartment units that are age-restricted and offer federal Section 8 housing subsidies for residents. In addition to the renovation of the existing units, 16 new apartments will be built on the same tract of land and will be considered by the USDA as a single development. The property will receive a $360,000 HOME program loan and grant funding from local and state sources. Meadowlane Apartments has a Rural Development 515 mortgage in place, which will be subordinate to the new USDA Rural 538 program loan.
The USDA Section 538 Rural Development Loan program can be utilized for multifamily rental properties targeting individuals and families in rural areas with incomes at or below 115 percent of the area median income. Eligible projects must be in a designated rural area which is not part of, or associated with, an urban metropolitan area. Financing can be applied to new construction, rehabilitation of buildings, or acquisition costs when related to rehabilitation. It can also be used for the acquisition of buildings for projects that serve a special housing need or the development of related facilities, including community space, recreation, storage or maintenance structures.
Enterprise's Multifamily Mortgage Finance group provides construction and permanent financing for affordable and market-rate multifamily housing and healthcare facilities through a broad range of financial products. The national lending portfolio totals more than $436 million for 15,000 affordable apartments and homes, including 5,000 affordable housing preservation units. In addition, Enterprise is a special Fannie Mae Delegated Underwriting and Servicing (DUS) lender, a Federal Housing Administration (FHA) approved multifamily and healthcare lender and a Multifamily Accelerated Processing (MAP) lender.
Source: PRnewswire.com