Poughkeepsie, NY; 60 Units, Senior Low Income Apartments
The project consists of four garden style apartment buildings containing a total of 60 one-bedroom units, a leasing office, a community room and a laundry facility. It is one of three elderly housing projects located on one 36 acre campus. The project was constructed in 1991 with a Section 202 direct loan from HUD. The project has had consistently high occupancy and stable operating expenses.
The project has had some difficulty meeting some of their typical operating expenses in the past, primarily due to the large debt service burden. Capital improvements were also becoming necessary as the project was now over 20 years old.
The partnership turned to Rockhall Funding to utilize FHA’s 223(f) program to provide 35 year, fixed rate financing for the properties. The loan funded repairs, a development fee and reduced debt service costs. As part of the financing, funds were raised to address many long-term capital replacement issues identified by project management and to increase the initial deposit to the replacement reserve.