Merchants Capital Secures $21.4M for Renovation of Affordable Housing Development in Indiana

by Kristin Harlow

EVANSVILLE, IND. — Merchants Capital has secured $21.4 million for the renovation of Carriage House of Evansville, a Section 8 housing development in southern Indiana. The financing involved a Fannie Mae mortgage-backed security as collateral for new tax-exempt bonds (M.TEB). Additionally, PNC Bank provided 4 percent low-income housing tax credits. Fannie Mae’s M.TEB solution provides borrowers with a lower interest rate and significant savings over the life of the loan, offering a loan-to-value ratio of up to 90 percent. This type of loan can be used to finance the construction, acquisition or rehabilitation of multifamily affordable housing properties. CRG Residential is the general contractor for the renovations. Updates include new flooring, cabinetry, countertops, energy-efficient light fixtures, bathroom renovations and new appliances. Plans also call for the addition of a bark park, picnic area, fitness center and internet café. Gene B. Glick Co. is the borrower. Carriage House of Evansville dates back to 1978 and serves tenants at 60 percent of the area median income or less. Renovations are set to begin immediately.

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