Greystone Affordable Development has closed a $168.6 million multifamily housing transaction in Georgia, marking the third collaboration with Atlanta, GA-based The Hallmark Companies.
Hallmark owns and manages some 11,000 affordable housing rentals in the U.S.
The portfolio of affordable housing properties included 26 aged USDA Rural Development Section 515 properties (which were then consolidated into 23) comprised of 1,310 rental apartments serving low-income households in 17 counties across the state.
In the statewide-pooled transaction, Greystone worked with USDA’s Rural Housing Service (RHS) State and National Offices and the Georgia Department of Community Affairs (DCA) to co-ordinate and secure the financing needed to recapitalize and rehabilitate this at-risk and much-needed housing.
“With only 38 affordable rental homes available for every 100 extremely low income households in Georgia, a large percentage of the state’s income-restricted households are severely rent overburdened,” said Tanya Eastwood, President, Greystone Affordable Development.
“New affordable housing stock just isn’t being created fast enough to meet the demands, thus preservation of the aging stock is absolutely essential.
“We are able to not only preserve, but also modernize this vital housing stock. It is important to note that this unique and complex process would simply not be possible without Housing Credits and Private Activity Bonds.”
“The rural areas of the U.S. are often overlooked for real estate investment, so we appreciate how valuable the portfolio preservation strategy is for owners committed to serving rural residents,” said Joyce White, State Director of Georgia, USDA Rural Development.
The financing plan combined both public and private funding.
Laurel Hart, Director, Housing Finance & Development Division, Georgia Department of Community Affairs, said she was inspired by the Hallmark program given the critical need for affordable housing in Georgia.
“We would love to see other owners in Georgia embrace this process, which is clearly something of a ‘secret sauce’ that Greystone has developed for the benefit of thousands of affordable housing residents.”