Rose Community Capital is pleased to announce a recent HUD MAP “heavy” 223(f) financing for an affordable housing community known as Community Arms Apartments, in Pasadena, CA. The Owner built this project for the benefit of the community in 1973 and has continuously operated it for the past 50 years. The project was rehabbed with LIHTCs in 2004. When the time came to exit the limited partner and rehab the project, the Sponsor came to RCC for assistance with the full repositioning and preservation of the project.
RCC assisted the owner with the technical assistance needed to exit the limited partner; determine the capital needs of the project; reposition the HAP contract with marked up rents based upon post-rehab condition for a new 20-year term; and refinance the project. The Sponsor will use loan proceeds to make much anticipated unit upgrades and improvements, enhanced security for the safety of the residents and created a fitness/wellness center for the health of the residents.
Community Arms is an integral part of the affordable community in Pasadena not only providing quality affordable housing, but also by providing learning actives via the Arthur Coleman Learning Center, weekly food drives and educational and recreational opportunities for youth.
RCC is proud to support the preservation of this historically black owned and operated project.
An essential key to the success of the transaction, was the concurrent processing of a Mark-up-to-Market rental increase and the MAP 223(f) loan, along with the Department of Housing and Urban Development support in regard to both financing pieces, during unprecedented times and hurdles of a global pandemic.
Location: Pasadena, CA
Type of Loan: 223(f)
Loan Amount: $32,463,000
Sponsor: Community Bible CDC, a faith-based community non-profit