RALEIGH, NC - Preservation of Affordable Housing (POAH) has closed on financing to renovate 50 affordable rental apartments in duplex apartment buildings on Garner Road in Raleigh, North Carolina. POAH purchased the property with support from Wake County with the goal to preserve existing affordability and prevent displacement of residents. The property was a former Low-Income Housing Tax Credit (LIHTC) project approaching the end of its 30-year affordability covenant. The Raleigh Housing Authority made Project Based Vouchers available to tenants to support the ongoing operations of the housing and ensure that rents remained affordable.
Given the age of the property and functional obsolescence of building systems and components, a comprehensive renovation was proposed by POAH, which was awarded funding from the City of Raleigh and Wake County to leverage 4% Low Income Housing Tax Credits (LIHTC) along with tax-exempt bonds for the improvements.
“This is POAH’s first acquisition in North Carolina and we look forward to partnering with the City and County and local groups working to preserve this community and expand affordable housing in the state,” said POAH President/CEO Aaron Gornstein. “We also look forward to introducing a range of community-based services for residents that will help them advance their personal goals whether it’s finding a new job, completing a degree or gaining financial literacy and security.”
The project will include financing ranging from 4% Federal Low Income Housing Tax Credits (LIHTC) allocated by the North Carolina Housing Finance Agency; gap financing from the City of Raleigh and Wake County; permanent lending from Self-Help Ventures Fund and the Wake Affordable Housing Preservation Fund program; Raleigh Housing Authority tax-exempt bonds; LIHTC equity investment from National Equity Fund; and construction financing from First National Bank.
The Self-Help Ventures Fund is a nonprofit 501c (3) loan fund capitalized with loans and grants from foundations, religious organizations, corporations and government sources. The fund manages Self-Help's higher-risk business loans, real estate development and home loan secondary market programs. For over 40 years, the national Center for Community Self-Help and its affiliates have provided more than $11 billion in financing to help more than 164,000 borrowers buy homes, start and grow businesses and strengthen community resources.
POAH is partnering with Hamel Builders, an experienced general contractor, for the project that will replace roofs, windows, doors, kitchens, bathrooms, flooring, appliances, light fixtures, and heating and cooling systems. Since the property is currently occupied, POAH will work closely with residents to coordinate the work and provide assistance in order to minimize disruption to them during the installations. Following the completion of construction, POAH will implement Community Impact initiatives through its property management company, POAH Communities, that will give residents access to services to ensure a stable tenancy and help them work towards financial, educational, career and health goals to improve the quality of their lives.
