Bethany Villas I & II
Bethany Villas is a 238-unit affordable senior garden apartments complex located in Troy, Michigan that was previously a 2 phase project originally developed each under HUD 202 loan program and HUD 236 loan program. The projects were combined under 1 new limited partnership and CCA helped to juggle the various underlying old HUD use agreements and those new required under the LIHTC program and with MSHDA as the new construction and permanent lender. The projects had a project based section 8 HAPC in place for 50% of the units that was renewed for a new 20 year period under Option 1b through HUD’s Mark Up to Market program to help leverage additional resources for the planned renovations.
Although the non-subsidized units were well below 60% AMI rent levels CCA was able to help utilize increased GPR from a newly established large tenant transition reserve that helped underwrite to higher rent levels while also protecting all existing tenants in those unsubsidized units at closing from experiencing a rent burden of no more than a 5% year over year increase that was sized to be available for up to a 14 year period. The project was also structured in a way to allow the non-profit sponsor to earn a new annual limited dividend while also taking back large seller note mortgages in addition to realizing 7 figures of net cash upon the sale for the Sponsor to be in position to stand behind long term guarantees and also have ample cash available to further its mission.
The renovation plan included more than $11M of improvements with unit interior upgrades of new kitchen cabinets & countertops, appliances, complete remodel of all bathrooms, energy-efficient lighting package, new floor covering, blinds and paint. Exterior unit doors and sliding patio doors were replaced, new vinyl siding installed, new pitched roofs trusses and roofs were installed on all existing flats roofs from the original phase I while replacing shingled roofs on phase II. The project meet MSHDA design standards and included resurfacing of the parking and driveways areas, installation of gazebos, replacement of benches and new hardy landscaping while also updated common area spaces in the community spaces