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New Affordable Housing Community in Morehead City Financed by Churchill Stateside Group

Author

Slice of Real Estate Team
August 09, 2024

Key Highlights:

  • 168-unit new construction in Morehead City, NC.

  • $14.2M FHA/HUD 221(d)(4) loan and $18M tax-exempt bonds.

  • 4% Low Income Housing Tax Credits used for financing.

  • Rent levels targeted at 60% of area median income.

  • Seven three-story buildings with patios/balconies.

Source (Business Wire)

Notable Quotes:

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“CSG’s ability to provide the FHA/HUD 221(d)(4) loan at a 40-year term and amortization, at a very low rate, allowed our development partner to maximize loan proceeds to make this project economically feasible. We are very appreciative to work with our development partner. In addition, we would like to thank the U.S. Department of Housing and Urban Development for supporting this project through its 221(d)(4) loan program.”

Dan Duda, Senior Vice President at CSG
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“Churchill delivers again by providing a very competitive FHA/HUD 221(d)(4) loan. In addition to the LIHTC HUD loan, this transaction involved several additional entities that all needed to come together in a narrow timeframe to get the deal to the closing table. Churchill’s HUD staff performed at a high level to bring the results needed to achieve a successful closing.”

Keith Gloeckl, Chief Executive Officer at CSG

Our Take:

The announcement from Churchill Stateside Group (CSG) showcases a significant achievement in affordable housing development. With a robust financing structure involving FHA/HUD loans and tax-exempt bonds, CSG has demonstrated its capability to support large-scale housing projects effectively. This project will not only provide quality housing options for low-income families in Morehead City but also highlight the importance of public-private partnerships in addressing housing affordability. CSG's strategic use of Low Income Housing Tax Credits (LIHTC) and efficient coordination with HUD underscore their leadership in the industry, paving the way for future developments that can similarly benefit communities nationwide.