ORLANDO—Housing Trust Group just inked a financing deal for affordable housing in the Orlando suburb of Eustis. The deal is worth $21 million.
Housing Trust Group closed on the financing of Valencia Grove, a 144-unit affordable housing community for working families. Construction began on November 30 with completion scheduled for next fall.
"Valencia Grove will serve the much-needed housing market for working families in Eustis," says Matthew Rieger, president and CEO of Housing Trust. "This new community will bring dozens of new jobs to the County and over $13 million in federal or State funding sources to the local economy."
Located at the northwest corner of Huffstetler Drive and Kurt Street, Valencia Grove adds to the affordable housing inventory. The multifamily project adds safe housing for families through a mix of one-, two- and three-bedroom units.
Project funding sources include a 4% SAIL loan, an ELI GAP loan from Florida Housing Finance Corporation, a grant from the City of Eustis, Tax Credit Equity from US Bank Corporation. SunTrust provided the debt through tax-exempted Multifamily Revenue State Bonds.
Housing Trust just overcame one of the biggest challenges with affordable housing. Namely, funding, especially when private funds are involved.
"A governmental entity will always want to see the experience and financial backing of the development team," Keith Poliakoff, who co-chairs Arnstein & Lehr's Government Relations Practice Group in Fort Lauderdale, tells GlobeSt.com. "As such, it is necessary to be able to prove to the governmental entity that you have the experience, expertise, and financial wherewithal, to be able to pull of the deal."
Valencia Grove will target families featuring a mix of 24 units. Based on tenant income levels, rents range from $358 for a one-bedroom on the low end to $790 for the highest-priced three bedroom.
Amenities include a clubhouse, playground, volleyball court, outdoor pool, dog park and car wash. Free community programs such as literacy training, employment assistance and family support coordination are also part of the program.
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