In a partnership with Housing Trust Group, Spectra has secured financing to acquire and rehabilitate Covenant Villas, a 144-unit apartment community in Belle Glade, Florida. The previously market-rate apartments will be converted to affordable housing units and set aside for families earning at or below 60 percent and 33 percent of the Palm Beach County area median income. Located at 601 Covenant Drive in Belle Glade, Covenant Villas was built in 1988 and consists of 144 one-, two- and three-bedroom apartments in 18 garden-style buildings.
The total development cost for the project, which includes renovation, is approximately $22 million. Funding sources include $18.2 million in 9% Low Income Housing Tax Credit equity invested by Raymond James Tax Credit Funds; loans totaling $2.2 million from Palm Beach County; permanent financing from National Lending Partners of $1.9 million; and a $13.5 million construction loan from TD Bank. Construction will commence September 30, 2016 and is expected to be completed September 2017.
“Palm Beach County and the Belle Glade community in particular has a great need for safe, clean and affordable housing,” said HTG President and CEO Matthew Rieger. “Knowing our track record in affordable housing and long-standing ties to the community, Palm Beach County approached HTG for assistance. We were able to secure financing sufficient to buy the property, allowing the previous owner to pay back the county’s first mortgage in full, and initiate a full-scale comprehensive rehabilitation program.”
