JERSEY CITY-Greystone has arranged $64.5 million in financing through the Fannie Mae Multifamily Affordable Housing program for acquisition and rehabilitation of the Salem Lafayette Apartments, an affordable housing complex here.
The finance deal involved a mix of public and private funding, including short-term bond financing that is tax exempt and Low Income Housing Tax Credits carrying a 4% interest rate.
"As the development of new affordable housing stock slows due to rising land costs, preservation of the existing housing stock is more crucial than ever before," said Jeff Englund, who heads Greystone's affordable housing finance group.
New York-based Greystone provides mortgage financing services for all types of FHA, Fannie Mae, Freddie Mac, USDA, CMBS, bridge, mezzanine and other proprietary loan programs.
The 412-unit Salem Lafayette complex was built in 1977 as Section 8 subsidized housing. It includes a 15-story 182-unit high-rise that is age-restricted to those 62 years and older and a 230-unit townhouse and garden-style property. The complex is managed by Ingerman.
According to the US Department of Housing and Urban Development records, the apartments had earned a Housing Quality Standards score of 79 out of 100 when inspected in 2010. The score indicated that living conditions were well below average.
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