Housing Crisis Hits Home in Many US Cities

Oslo Apartments is one of the multifamily properties financed by Bellwether.

AUSTIN, TX—The United States is in the midst of a broad housing insecurity crisis that is affecting nearly 19 million low-income families who are homeless or paying more than 50% of monthly income on housing. Austin is experiencing housing woes similar to those in other metropolitan cities. Bellwether Enterprise Real Estate Capital LLC’s goal is to end housing insecurity, which means eliminating homelessness and creating housing that requires less than half of household income to afford. Financing to increase the desperately needed supply of workforce housing is helping to ease the burden. In just last month alone, $25 million in financing was facilitated for affordable and workforce housing by Bellwether Enterprise. Three of these spotlight deals are in Austin, Lubbock, TX and Millbrook, AL. A $13.2 million acquisition loan for an Austin multifamily complex, Oslo Apartments , was facilitated last month. The 176-unit apartment building was purchased as a market-rate building, but upon acquisition, Bridge at South Point LLC reserved 50% of the units for households earning less than 80% of AMI. Kevin Bowen , senior vice president in Bellwether Enterprise’s Dallas office, arranged the loan, which creates much-needed affordable units in the building. Ned Huffman , president of Bellwether Enterprise, tells GlobeSt.com: “Currently, Austin only has enough affordable housing for one out of every four families that need it. With 88 previously market rate apartments in the Oslo Apartments property being converted into affordable housing, working families will get some much-needed relief. We are proud to facilitate financing for developments like this that help families continue to call Austin home.” In addition, a $3.55 million forward-conversion refinance loan was completed for a multifamily complex, The Reserves at South Plains , in Lubbock, TX. Bowen delivered the loan for OPG South Plains Partners LLC . The 106-unit affordable housing complex was built using 9% low income housing tax credits and a Fannie Mae permanent loan. Finally, a $5.2 million HUD 223(f) refinance loan was facilitated for Rolling Hills Apartments in Millbrook, AL, just north of Montgomery, AL. With 136 units, the 13-acre multifamily garden apartment community sits along the west side of Deatsville Highway. It was originally constructed in 1996 as a low income housing tax credit development. Bellwether Enterprise’s Jon Killough delivered a 35-year amortizing loan with a long-term fixed rate that exceeds the remaining low-income housing tax credit compliance period. It will allow the borrower, Millbrook Affordable Housing Partners Ltd. to preserve the existing affordability. “With loans like these, it is not only a matter of meeting our clients’ needs, but meeting the needs of families who need a place to live that they can afford,” said Huffman. “We are thrilled to put our strong relationships and lending experience to use toward protecting affordable housing, as many communities across the country face a diminishing supply.”