NEW YORK, NY - Greystone affiliate, America First Multifamily Investors L.P. (NASDAQ: ATAX) (“ATAX”), today announced that it has provided more than $33 million in tax-exempt and taxable construction loans for the $45.7 million construction of a 67-unit permanent housing building and a 21-unit transitional housing building in Los Angeles. Frank Bravo, Managing Director at ATAX, originated the transaction.
The planned properties, known as Hope on Avalon, will provide housing to 66 homeless individuals seeking permanent supportive housing in a five-story building, with the goal of transitioning to self-sufficiency. An additional two-story transitional housing building will include 21 larger units that will accommodate up to 80 chronically homeless individuals.
Co-developers LSA Capital, Inc., and Aedis Real Estate Group will benefit from the ATAX construction financing with a 24-month term and additional equity from RBC Community Investments, LLC, a low-income housing tax credit investor. Freddie Mac is providing the permanent financing through Tax-Exempt Loans (TELs) as part of its affordable housing platform.
“Homelessness is an ever-growing challenge throughout the U.S., and Los Angeles County in particular has seen a 68 percent increase in the homeless population since 2013. This transaction with LSA and Aedis will help provide critical housing to those who need it most,” said Bravo. “With Greystone’s expertise in the affordable housing space, ATAX can find solutions that meet the needs of both our clients and communities.”
Ken Rogozinski, CEO of ATAX added, “This unique transaction that addresses such a critical community need in Los Angeles shows ATAX’s commitment to generating social good through our investment activities.”
The development is supported by social services contracts provided by the Los Angeles Department of Health Services’ Flexible Subsidy Pool. The department’s program administrator, Brilliant Corners, will provide long-term operating subsidies for both the permanent and transitional units. The buildings, developed using modular construction that provides cost savings and timeline efficiencies, will be located within South-Central Los Angeles.
“It is a basic human need to have a safe and secure home,” said Scott Baldridge, owner of Aedis Real Estate Group. “Through Hope on Avalon and our relationships with LSA and ATAX, we can develop multi-family supportive housing that promotes community integration, greater independence, and well-being for people transitioning from homelessness.”
Greystone is the #1 provider of HUD-insured commercial loans, a top provider of Fannie Mae and Freddie Mac affordable housing loans. In 2019, Greystone, together with its affiliates, acquired the parent of the General Partner of America First Multifamily Investors, L.P., which 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
About Greystone: 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.