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Work Starts on $28M Affordable Housing Project

HOUSTON-Provident Realty Advisors of Dallas, with financial backing from CharterMac and Related Capital, is building its first affordable project in town. The 238-unit project is going up on 33.6 acres at Veterans Memorial Drive and Gears Road.

By Jennifer Brenner Andrade | Updated on March 14, 2004

HOUSTON-A Dallas-based developer of affordable housing has broken ground on his first local project, a $27.8-million, 238-unit development in the northwest submarket.

Provident Realty Advisors Inc. is teaming with New York City’s CharterMac and Related Capital Co. to develop the Providence at Veterans Memorial, a 33.6-acre community that will sit at the intersection of Veterans Memorial Drive and Gears Road. CharterMac fueled the project with the $16.3-million purchase of tax-exempt and taxable bonds, with a 40-year term and amortization schedule. Related Capital put up $6.5 million in equity. According to the Texas Department of Housing and Community Affairs, the tax credits will generate $677,432 per year for 10 years for Related Capital. The debt component carried a 6.6% fixed-interest rate financing for the first $15 million and 8.5% for the balance.

Saleem A Jafar, partner and managing director with Provident Odyssey Partners LP, the developer’s affiliate, tells GlobeSt.com that the land and financing package closed simultaneously–a must-have because the firm doesn’t undertake speculative projects. The Providence at Veterans Memorial, which will deliver in February 2005, is the firm’s first affordable housing project in Houston, but it won’t be the last, he says. In the past year, Provident and the pair of financial backers have built more than 1,000 affordable housing apartments in the state.

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