Columbus, Ohio (PRWEB) March 10, 2014
Red Mortgage Capital and Red Capital Markets, the mortgage and investment banking arms, respectively, of Red Capital Group, (RED) announced today that it provided a $ 5.78 Million FHA section 221(d)(4) mortgage and $ 15.5 million tax-exempt bond financing for the Centre Meadows Apartments in Lexington, KY, sponsored by the Lexington-Fayette County Housing Authority (LHA). The financing of the substantial rehabilitation of Centre Meadows was one of the first transactions to involve FHAs Rental Assistance Demonstration (RAD) program conversion, an FHA mortgage, tax-exempt bonds and low income housing tax credits.
Centre Meadows, formerly Pimlico Apartments, is a proposed substantial rehabilitation of a 206 unit public housing community located at 1317 Centre Parkway in Lexington. The property is situated on about 14 acres of land and was originally constructed in 1976. The site includes 11 two-story buildings, a separate two-story leasing office, and an all-day child care facility. The community, operated by the LHA, will be converted from public housing units into Section 8 rental subsidized units under the RAD program. RAD is a central part of HUD’s rental housing preservation strategy, which works to preserve the nation’s stock of deeply affordable rental housing, promote efficiency within and among HUD programs, and build strong, stable communities.
We are very excited about this opportunity as it is one of the first RAD projects closed using an FHA Insured Mortgage and low income housing tax credits, stated Jim Hensley, Senior Managing Director for RED. In partnership with HUD, Red continues to be a pioneer when it comes to finding new solutions for affordable housing projects. Through the RAD program, LHA will be able to upgrade Centre Meadows so that it can provide safe and desirable housing for years to come. We look forward to working with other housing authorities as they look to take advantage of the RAD program and improve housing in their communities.
The Lexington Housing Authority, in an effort to continue to change the streetscape of affordable housing in Lexington, was pleased to be one of the first to participate in a RAD Program Conversion with an FHA mortgage, tax exempt bonds and low-income housing tax credits, stated Austin Simms, Executive Director, Lexington-Fayette County Housing Authority. It was through the Red Capital Group, led by Joey Hague, Vice President at RED, that this complicated, creative financing deal was made possible. Our hats are off to Red for their support and involvement.