The U.S. Department of Housing and Urban Developmentās (HUD) Office of Multifamily Housing closed a rental assistance demonstration (RAD) transaction with the Housing Authority of the City of Atlanta to preserve affordable housing at its 20-building Villages at Castleberry Hill development.
HUD said the money will be used to preserve 114 affordable rental homes as deeply affordable Section 8 homes as well as 114 affordable, low-income housing tax credit (LIHTC) homes.
The RAD includes a $33.3 million construction budget ($117,000 per unit) fully financed through a commercial first mortgage loan and 4 percent low-income housing tax credits, HUD said.
HUD said the immediate and future needs of the Village at Castleberry Hill project are addressed through the recapitalization, setting the project up for both financial and physical stability over the long-term.
The release of the aforementioned funds is for the second phase of the development, following a 166-affordable rental home phase one project which preserved 102 affordable homes and closed in June 2018.
With this RAD transaction, the housing authority has been able to change the unit configuration to allow for 57 of the existing 113 market-rate units to be converted to affordable LIHTC units.
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