HPN NMTC Allocation Update
HPN will be closing the last $10MM of its 2016 NMTC allocation on Monday, 4/30, with Homewise and Develop Detroit. This will include $4.5MM in additional allocation from Consortium America.
Homewise will use their $8MM allocation to finish phases II and III of a project called El Camino Crossing (in the Corazon Santo neighborhood of Sante Fe, NM) which is a planned mixed use residential-commercial development that will transform a vacant parcel into 76 residential units along with 8,300 square feet of commercial space and 6,500 square feet of office space. This is a highly distressed neighborhood, in an otherwise high-cost city, where 34% of residents live under the federal poverty line. HPN funded Phase I of this project (20 new homes) with a $5MM NMTC allocation that closed in May 2017.
Develop Detroit, Inc. plans to use an $6.5MM NMTC allocation to develop approximately 30 homes in highly-distressed neighborhoods in Detroit, 12 of which will be new construction and 18 of which will be rehabbed.
In Detroit's North End, they will acquire and rehabilitate existing detached and semi-detached structures for sale to owner occupants and acquire sites for the new construction of detached single-family and semi-detached townhomes, also for sale to owner-occupants. In the Grandmont Rosedale neighborhood, they will partner with Grandmont Rosedale Community Development Corporation (GRCDC) to expand their existing community redevelopment program through the acquisition of 12 detached single-family structures for rehabilitation and sale to owner occupants. Although residential values are improving, they continue to fall short of costs. The North End, in particular, is a prime target for gentrification, with investor activity driving values up well over 200% in the last year. Their strategy is to continue to lift values to a level that supports reinvestment, while also creating affordability through soft seconds and income restricted rental opportunities.
In 2018 YTD HPF has closed 6 loans and deployed $7.6MM in capital ($6MM net of participations) to the following members:
- Capitol Hill Housing $1,250,000 Enterprise Loan
- Montgomery Housing Partnership $3,000,000 Enterprise Loan
- Charlotte-Mecklenburg Housing Partnership $1,500,000 Enterprise Loan
- CDC Brownsville $1,500,000 Enterprise Loan
- Way Finders $1,000,000 Enterprise Loan
- NHT Enterprise $680,000 Project Loan (HPF participated in a loan through NHT’s CDFI)