Greystone Affordable Development, a leading provider of affordable housing recapitalization, rehabilitation and development services, announces the closing of a $77.3 million multifamily housing transaction in South Carolina. Greystone was also recently named the #1 national developer of rural affordable housing units by the Council for Affordable and Rural Housing (CARH) for the third year in a row.
The South Carolina portfolio includes 18 aged USDA Rural Development Section 515 properties, comprising 762 apartment homes serving low-income households in 15 counties across the state, and are owned and operated by WWJ, LLC. In the statewide pooled transaction, Greystone’s affordable housing preservation and development group worked closely with USDA’s Rural Housing Service (RHS) State and National Offices and the South Carolina State Housing Finance and Development Authority to coordinate and secure the financing needed to acquire and rehabilitate this at-risk and much-needed housing.
“SC Housing is proud to be a partner in the preservation and renewal of this critical housing stock. These homes, as well as the residents and the state of South Carolina, will benefit greatly from this investment. Greystone and WWJ are to be commended for their effort to improve the lives of so many people,” said Robert Wilson, Interim Executive Director, South Carolina State Housing Finance and Development Authority.
“Marking our 6th such transaction with WWJ, affordable housing owners are clearly seeing the long-term benefits of a recapitalization and preservation initiative, with the ultimate beneficiaries being the residents who rely on this housing for their wellbeing,” said Tanya Eastwood, President, Greystone Affordable Development. Added Eastwood, “It truly takes a village to accomplish such a feat, and we are thankful for our partners and all of the collaborators in making this happen. We are thrilled that WWJ has recognized – time and again – the value in preserving their assets through this process.”
The financing plan combined both public and private funding, and included:
· Tax-Exempt Bonds – Single issuance of $24.9 million in multifamily private activity tax-exempt bonds from the South Carolina State Housing Finance and Development Authority. The short-term bonds were purchased by TD Bank.
· Low-Income Housing Tax Credit Equity – Purchase of 4% Federal LIHTCs by an affiliate of Community Affordable Housing Equity Corporation (CAHEC), generating $14.1 million in capital contributions.
· RHS 515 Debt - Assumption and subordination of $15.4 million of original USDA Section 515 debt. The Section 515 program is a direct loan program designed to provide subsidized loans to developers of affordable housing in rural markets. In addition, 40% of the 762 apartment units will continue to receive Section 521 Rental Assistance provided by RHS. And 26% will continue to receive Section 8 Rental Assistance provided by the U.S. Department of Housing and Urban Development (HUD).
· Senior Debt of $20.3 million in USDA Section 538 loans provided by Greystone Servicing Corporation, Inc.
· Excess Reserves, Project Operations, Investment Income, and Deferred Developer Fees - totaling $2.6 million.
The rehabilitation plan includes a fast-paced construction process, estimated to be complete within 18 months, during which no residents will be permanently displaced. Substantial renovations, averaging $30,000 per unit, will include both interior and exterior improvements. Particular emphasis will be placed on bringing the properties, built between 1975 and 1989, up to modern standards, addressing accessibility, functional obsolescence and deterioration.
"Greystone has shown to be a critical, reliable, trusted and creative partner in helping us achieve our goals for preserving and optimizing our portfolio of affordable housing,” said Joe Wilczewski, Vice President of Finance, WWJ, LLC. “We are truly invested in South Carolina and are thrilled with the ultimate outcome of such a complex, innovative transaction to preserve 762 affordable units across the state."
