Congratulations to Upper Shore Aging Housing Corporation! Last week they closed on a new FHA 223(f) loan for their 30-unit Morgnec Village, located in Chestertown, MD. This is a senior property originally financed with a HUD 202 Direct loan, with 100% Section 8 rental subsidy. Owners and lenders sometimes think that a 30-unit property is too small to take advantage of preservation financing, but this project proves this wrong. We were able to help USAHC increase their Section 8 rents by 13%, which increased their new loan considerably. With a new FHA 223(f) loan, they are now going to be able to pay for the replacement of the property’s siding, roofs, windows, kitchens, baths, and they will also bring the property into full accessibility compliance. I look forward to sharing the “after” pictures with you in a year!
This preservation could not have happened without Centennial Mortgage, who did a superb job with the FHA loan, Miner Feinstein Architects who helped us envision and plan for this beautiful transformation, and Horst Construction, who specializes in working on rehabs of senior properties. We are already underway on refinancing the rest of USAHC’s portfolio, based on the success with Morgnec Village.