The projects below illustrate the types of engagements and solutions that The Gates Dunaway Group has found for non-profit affordable housing owners throughout the country.
St. John's Towers, havre de grace, maryland
What: 53 unit senior high-rise, built in 1966
Client: St. John's Tower, Inc., 501(c)3 Maryland non-profit
Original Financing: HUD 202 Direct Loan Loan, 100% Section 8, Flex Sub Loan
GDG Services: Preservation Study, MU2B of Section 8, prepayment of 202 Loan (sub-rehab waiver obtained), deferral of Flex Sub Loan, refinancing with FHA 223(f) loan, application for AHP Grant (2012-2018)
Impact Statement: St. John's Towers was well maintained but aging when Gates met the Owner of this senior property. It was determined that an FHA 223(f) loan would be the best fit to address the needs of the property without burdening the cash flow. The rent increase was important to this solution, as was the ability to secure a deferral of the Flex Sub Loan and a "sub rehab" waiver. The proceeds of the new loan were used to replace all of the bathrooms and plumbing systems, to address the elevators and common spaces, and to improve accessibility.
wasatch manor, salt lake city, utah
What: 183-unit senior high-rise, built in 1965
Client: Danville Development Corp, third party property manager for NP owner
Original Financing: HUD 202 Direct Loan, Partial Section 8, Flex Sub
GDG Services: Property Analysis, MU2B of Section 8, refinancing with Utah Community Reinvestment Corp Loan, new project-based voucher contract for qualified unsubsidized tenants (2012-2018)
Impact Statement: Wasatch Manor is a good example of how we must stick to the course even when we hit considerable road bumps. The first choice of financing to address window and stucco replacement at this senior property was an FHA loan. But due to issues related to the seismic standards to be met, we had to look elsewhere. UCRC came into the picture as a willing and eager regional lender who could match many of the favorable terms of FHA financing. The new loan was used to pay off the unpaid balance of the Flex Sub loan, and to address needed upgrades. In 2018 GDG helped the owner apply for and receive a limited supply of vouchers for unsubsidized residents. This new subsidy will increase the NOI considerable, and will enable an increase in loan proceeds, all of which will be used for additional repairs.
cherry heights & oak manor, grand forks, north dakota
What: Combined 124-unit senior mid-rise, built in 1974 & 1976
Client: Grand Forks Housing Authority
Original Financing: Cherry Manor / HUD insured 236 Loan, partial Section 8; Oak Manor / HUD insured 221(d)3 Loan, 100% Section 8
GDG Services: Property Preservation Study, refinancing of the combined properties with an FHA 221(d)4 loan (2014-2015)
Impact Statement: Cherry Heights and Oak Grove were built in phases on the same property, connected by a “Link” building, which contains common spaces and services. The GDG structured a combined refinancing which increased the leveraging ability and economies of scale of each property. Loan proceeds were used for significant improvements throughout the property.