Hunt Capital Closes $8.5M Loan for Acquisition, Rehabilitation of Affordable Housing in Palm Desert, California
PALM DESERT, CALIF. — Hunt Capital Partners and developer D.L. Horn & Associates have closed on more than $8.5 million in federal Low Income Housing Tax Credits equity financing for the acquisition and rehabilitation of an affordable multifamily project in Palm Desert.
The Hovley Gardens project consists of 16 two-story, walk-up residential buildings offering a total of 163 units, as well as a community building. The unit mix includes 72 two-bedroom units, 72 three-bedroom units, 18 four-bedroom units and one three-bedroom manager’s unit. Eighteen of the units will be restricted to households earning up to 30 percent of area median income (AMI), 55 units will be restricted to households earning up to 45 percent of AMI, 82 units will be for households earning up to 50 percent of AMI and seven units will be for households earning up to 60 percent of AMI.
Units renovations will include upgraded cabinets, countertops, sinks, faucets and flooring. Twelve units will be converted to fully accessible and the five existing accessible units will be modified to be compliant with current regulations. Community upgrades will include improvements to the building systems, commons areas and community spaces.
The project team includes ConAm Management Corp., Multi-Family Builders, Yepiz Construction and Derra Design. Development costs at Hovley Place total $20.4 million. Bank of the West provided a $11.2 million construction loan, California Community Reinvestment Corp. provided $5.5 million in financing for a permanent loan and the City of Palm Desert provided $5.2 million subordinate acquisition-to-permanent loan.
Hunt Capital Partners syndicated the tax credits through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 41.