WASHINGTON, DC - Love Funding, one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, announced the closing of two loans in Michigan. The first is a $4.6 million loan to refinance Devonshire Retirement Village, a 40-bed assisted living and memory care center in Lapeer, Michigan. The second is a $4.7 million loan to redevelop part of Oakman Townhomes, an affordable apartment community in Detroit, in combination with equity provided by low-income housing tax credits (LIHTCs).
Love Funding Midwest Regional Director Bruce Gerhart secured the loans through the U.S. Department of Housing and Urban Development’s loan insurance programs. The funding for Devonshire Retirement Village came through the 232/223(f) non-recourse program, which enables borrowers to obtain low-rate financing for up to 35 years for the purchase or refinance of existing long-term healthcare facilities. Gerhart secured the loan for Oakman Towers through HUD’s 221(d)(4) loan insurance program, which allows for the construction or substantial rehabilitation of multifamily properties. The Michigan State Housing Development Authority provided a substantial equity contribution to the project with the awarding of 9 percent LIHTCs.
Devonshire Retirement Village was built in 2004 and is divided into two separate buildings, one housing a home for the elderly and the other featuring specialized care services. The facility is owned and operated by Leisure Living Management Inc., a Grand Rapids, Michigan-based provider of quality senior lifestyle services through distinct senior housing products that include independent living apartments, assisted living and specialized memory care residences.
Oakman Townhomes will be built on a part of the site that currently houses Ryan Court Apartments, a garden-style apartment community that was built between 1947 and 1949. The new project, which will offer 72 units spread over five residential buildings and include a community building, will reserve at least 40 percent of the 72 units for tenants whose gross income does not exceed 60 percent of the median income for the area. All of the new units will be covered by a Section 8 housing assistance payment (HAP) contract that will help subsidize rents for a 20-year period.
For more information, contact Bruce Gerhart at (216) 583-0812 or visit www.lovefunding.com.
About Love Funding: Love Funding is an experienced FHA lender serving clients across the country from its headquarters in Washington D.C. and offices nationwide. The company offers refinance, construction, rehabilitation and acquisition financing programs for multifamily and affordable housing, healthcare facilities and hospitals. Love Funding is a subsidiary of Midland States Bank, Inc., a $3 billion community banking organization headquartered in Effingham, Illinois.