NORTHWEST REGION
$4.2 MILLION LOAN
CONSTRUCTION/REHAB LOAN
176 units of multifamily rental housing
"I appreciate FCLF for lending in rural areas, where many other lenders are exiting. From the first moment we spoke with FCLF staff, we felt we had a partner in refinancing our 2 communities." – Jamie Kerr, President, AMCS Development
In rural Florida, there is a great need for affordable rental housing. In Madison and Taylor Counties, two rural counties east of Tallahassee, 30% of the population lives at or below poverty level and household income is 70% of the area median income (AMI). Griffin Heights purchased 2 aging apartment buildings out of bankruptcy in these counties.
Griffin Heights, LLC, is a subsidiary of AMCS Development, a company that owns and manages exclusively multifamily rental properties. AMCS has a plan to upgrade the properties and continue to provide affordable rents to area residents. Renovations to the 1970s buildings will include new roofs, HVAC systems, playgrounds, and remodeling a rental office.
Florida Community Loan Fund (FCLF) provided $2.1 million towards a total loan of $4.2 million for refinance and renovation of these apartment complexes. When the properties were bought out of bankruptcy, there were existing loans requiring refinance or repayment. Other lenders said "No," – it's not our focus, or the market is too small – but FCLF said "Yes." The amount required was larger than our typical loan size, so we reached out to a lending partner – Mercy Loan Fund – who is participating in the loan and providing $2.1 million in financing.
As noted, one modification will be new HVAC units. Prior to renovation, the apartments had strip heating and no air conditioning. Now residents will have energy efficient heating and air conditioning.
Playgrounds will also be added, a real need for these complexes that are occupied primarily by families. “I was at Madison Apartments the day the playground was installed,” said Jamie Kerr of AMCS. “The playground contractor had just finished when the school bus pulled up. To see the excitement on the children’s’ faces when they saw the new playground was priceless.”
This loan is the first for FCLF in Madison and Taylor Counties, and will allow the owner to preserve the affordability of 176 rental apartments for very low-income households. Both complexes are 100% Section 8 properties.
View more photos of Griffin Heights on FCLF's Flickr Page.
Pictured: pre-rehab photos of the 2 Griffin Heights apartments in rural Florida; and a nearly completed playground for families and children.
