A 158-unit new-construction, 9% HTC, mixed-income development for families is located in Brownsville, Texas. This is a HUD mixed finance development. Resident incomes range from 30% of AMFI including 30% public housing units to 60% of AMFI. A small portion of the development units, 5%, are leased at market rates without income restrictions. RISE was the fee developer and contractor for the Housing Authority of the City of Brownsville, BHA, who is the GP and owner of the development partnership.
Construction financing for this development was provided by IBC in the amount of $5.5MM. AIG Sun America provided a permanent mortgage at stabilization at 7.15% per annum fixed for 18 years, with a 30-year amortization permanent mortgage in the amount of $3.25MM. The contractor broke ground on the project in December 2005. Completion: October 2006. 100% occupancy was achieved in April 2007. The project received a soft money contribution from BHA for $710,000 plus an assignment of the public housing subsidy for the public housing units. BHA received a $750,000 HOPE VI demolition grant to supplement this replacement housing project in the Rio Grande Valley. The HTC award was $1.082MM in annual 9% credits. AIG Sun America is the equity investor. The construction contract was for $10.4MM. RISE was the property manager through lease-up and stabilization.