REFINANCING HUD SECTION 202 PROPERTIES
On January 4, 2011, the President signed Public Law 111-372, the Section 202 Supportive Housing for the Elderly Act of 2010 (“P.L. 111-372”). Together with other changes, P.L. 111-372 once again amended the statutory authority for the refinancing of Section 202 loans.
The U.S Department of Housing and Urban Development encourages owners to refinance and improve their older Section 202 properties. More importantly today’s low interest rate environment makes it possible.
The Finch Group and its principals (“TFG”) have been involved in countless and varied assisted/affordable housing program transactions since the National Housing Act of 1968 and the Tax Reform Act of 1969 combined to create the private sector low and moderate income housing industry. TFG has consulted on, developed, “worked out,” constructed and/or managed in excess of $1 billion of assisted/affordable housing. TFG leverages this extensive experience to assist Section 202 property owners through the time consuming and ultra-technical process of refinancing.
As the development consultant, TFG will: (a) prepare the required Project recapitalization related submissions to HUD (locally and DC), the city (if required), state, mortgage lenders, underwriters and potential equity investors, (b) supervise the selection and work product of the necessary recapitalization related professionals (architects, engineers, attorneys, surveyors, environmental, etc. each of whom will contract directly with the Not-for-Profit), (c) shepherd the submissions through each of the approval processes, (d) work to ensure smooth transaction and completion of all real estate matters, and (e) handle the negotiation and documentation necessary for the sale of the LIHTC’s. All of this would be performed in conjunction with, under the oversight of and with the prior approval of the Not-for- Profit.
The Finch Group’s track record is very strong and we feel we can build off our prior successes to help you.
Shirley H. Gould House in Boca Raton, FL
“With the help of The Finch Group we were able to greatly improve our Section 202 property, extend our Section 8 contract and generate significant cash resources to our lead not-for-profit, the Jewish Federation of South Palm Beach County.”
Mel Lowell, COO, Jewish Federation of South Palm Beach County
Prince Hall Plaza Apartments, Harlem, NY
“Upon becoming the Grand Master of The Most Worshipful Prince Hall Grand Lodge of Free and Accepted Masons in 2010, I determined that the Section 202 we sponsored in 1988 had deteriorated considerably and had negative current cash flow. We retained The Finch Group to help us refinance and syndicate, with Low Income Housing Tax Credits, the property. But, first they had to triage the property and its operations, improve the financial performance and bring the property back into compliance with HUD regulations. They spent four years with us and, in September, 2015, we successfully completed the refinancing and improvements to the property. The Finch Group stood with us every step of the way and we earned over $1,000,000 that we can use in our charitable endeavors.”
Gregg Smith, Past Grand Master
Ginger Ridge MHA, Inc., Calumet City, IL
“In 1996 a tenant group brought in The Finch Group to steer us through the acquisition of a highly distressed HUD owned property that was home to hundreds of individuals with limited financial resources. By 1997 The Finch Group helped us form an Illinois Non-Member not-for-profit and, under their guidance, we redeveloped (and placed in service in 1999) the property into one of the finest residential rental properties in the South Suburbs of Chicago. The Finch Group has managed the property ever since. Now, 16 years later we are once again implementing a $13.5M improvement program by refinancing and re-syndicating, using Low Income Housing Tax Credits, the transaction. As promised back in 1997 our Not-for-profit was able to buy out the Corporate Limited Partner in an amount equal to 4% of its original capital contribution. We are entirely grateful to The Finch Group for the years they have worked with us to make the property a show piece of what can be accomplished.”
Gabe Grossman, Secretary, Ginger Ridge MHA, Inc.
Abington Arms Apartments, Cleveland, OH
“The Board of Abington Arms has recently retained The Finch Group to assist us with the refinancing and syndicating, through the use of Low Income Housing Tax Credits, our 39 year old Section 202 property. The Finch Group brought to our attention the benefits of refinancing and syndicating the property to the two lead not-for-profits that own Abington Arms. After an exhaustive vetting process we selected The Finch Group to not only represent us in the refinancing, but to also join the Board and operate the property.”
Debbie Berry, Vice President of Development, University Circle, Inc. and Abington Arms Board Member