Greystone Closes on $120M to Rehabilitate Texas Affordable Housing Units

Greystone Affordable Development has closed on a $120.5 million recapitalization and renovation project in Texas.

The transaction, which is Greystone’s first in the state, is in collaboration with Hamilton Valley Management out of Burnet, Texas. Greystone will utilize the Housing Credit to redevelop, modernize and secure affordable rental homes for thousands of Texans, the company said in a prepared release. The Hamilton Valley’s portfolio includes 23 USDA Rural Development Section 515 properties, which consists of 802 apartment homes that serve low-income households.

The construction process, which is said to be fast-paced, will be complete within 16 months. No residents will be permanently displaced, the company said. The renovations, which average at $37,200 per unit, will include updates to both interior and exterior parts of the unit.

Tanya Eastwood, president at Greystone Affordable Development, said the Housing Credit was critical to this transaction.

“The rehabilitation of these properties, and the jobs that will be created during the extensive rehabilitation, would not be possible without the Housing Credit, our nation’s primary tool for financing affordable rental housing,” Eastwood said. “Unfortunately, the program is facing significant challenges, threatening the development of affordable housing across the country at a time when it is needed more than ever. ”

The affordable housing industry was facing challenges before the COVID-19 pandemic. As previously reported by GlobeSt.com, The Counselors of Real Estate released a list of 10 issues affecting the real estate industry in 2020 through 2021. Affordable housing was number five on the list. The organization said some solutions include expediting the approval process for affordable housing, expanding taxpayer-funded front-end subsidy programs, and strategic use of zoning.

Eastwood expressed her support for federal policies related to affordable housing, as well.

“We support the immediate enactment of federal policies, such as the Moving Forward Act, H.R.2 and the Emergency Affordable Housing Act of 2020, which creates a minimum 4% Housing Credit rate that would strengthen the purpose and efficacy of the Housing Credit and provide more affordable homes across the nation,” she said.

Greystone worked closely with USDA’s Rural Housing Service Texas State Offices, the Texas State Affordable Housing Corporation and Texas Department of Housing & Community Affairs who all helped secure the financing for this deal.

“We now know first-hand the importance of the Housing Credit and what it can do to keep thousands of residents in their affordable rental homes,” said Dennis Hoover, president, Hamilton Valley Management, Inc. “The complexity of this transaction is truly incredible, and we are grateful to the many groups that contributed to its success.”

To find more about the financing plan, which included both public and private funding, and see the deal team, go here.