Greystone Finances Affordable Housing Deal Through Multiple Sources

Multifamily mortgage lender Greystone, New York, has closed on a $117 million transaction in Georgia where it provided financing for the acquisition and rehabilitation of 44 affordable housing properties across the state.

The properties had been originally funded through the USDA Rural Development Section 515 program with the whole portfolio being acquired by WWJ LLC, an affiliate of Boyd Management Inc.

Greystone cobbled together a number of sources for the new financing, including $26.9 million in Fannie Mae Delegated Underwriting and Servicing program loans; $47.2 million of tax-exempt bonds issued by the Athens Housing Authority; the purchase of 4% state and federal low-income housing tax credits by an affiliate of the Community Affordable Housing Equity Corp., which generated $31.7 million in capital contributions; the assumption and subordination of $365.9 million of USDA RDS 515 debt; and $2.2 million from other sources.

“The financing structure of this transaction truly shows the dedication and out-of-the-box thinking of an extraordinary group of people,” said Jeff Englund, head of Greystone’s Affordable Housing lending group.

“Even though we were thrown a few curve balls, it was the hard work and dedication of many people, especially those at Fannie Mae and the USDA that allowed us to close this transaction and ultimately make a positive impact on the lives of the residents that call these Georgia properties ‘home.’”