HUD MIXED-FINANCE SECTION 202 AND LIHTC

Cabrini First Hill Apartments
Seattle, Washington

Future Unlimited Law PC represents clients in affordable housing transactions that combine HUD Section 202 financing for the very low-income elderly and Low Income Housing Tax Credits. The Firm’s services include: formation of entities, preparation of federal income tax exemption applications for the general partner, structuring the transaction, review and negotiation of debt and equity financing documents, drafting the HUD Section 202 financing and regulatory agreements in compliance with LIHTC, investor and construction lender requirements, issuing legal opinions, and coordinating the closing.

Ruth Sparrow represented Missionary Sisters of the Sacred Heart of Jesus, New York in connection with the Section 202/9% LIHTC financing of the construction of Cabrini First Hill Apartments, Seattle Washington (closed March 2004), one of the first of such transactions to close nationwide. Financing included construction and permanent financing, HOME funds, King County Harborview funds, FHLB funds, and tax credit equity. Cabrini First Hill Apartments is a new construction mixed-use project consisting of 49 one-bedroom apartments specially designed for very low income seniors plus a resident manager’s unit and first floor commercial space in the First Hill neighborhood of Seattle, Washington. Twenty percent (20%) of the apartments are set aside for homeless seniors, and twenty percent (20%) are set aside for seniors with disabilities.

Future Unlimited Law PC represents Community Development, Inc. - South, an Idaho nonprofit corporation, and affordable housing developer in the HUD Mixed-Finance Section 202 and 9% LIHTC development to be known as Southern Breeze Residences in Eunice, Louisiana. Additional financing includes HOME funds. The Firm is responsible for obtaining tax-exempt status for the nonprofit general partner of the tax credit partnership, negotiating and drafting mixed-finance documents and obtaining HUD approval of the transaction.

The Development will consist of new construction of 42 units: 34 one-bedroom and 8 two-bedroom units, including a unit for a resident manager, specially designed for very low and low-income elderly persons, and a community facility with extensive social and educational services. All of the units will be eligible for LIHTC; and one-third of the units will be financed with Section 202 capital advance and project rental assistance.