4% LIHTC Portfolio

Preserve and modernize 802 affordable housing units across the state of Texas amidst pandemic.

Project at a Glance

In its continued efforts to help preserve critical affordable housing in the United States, Greystone Affordable Development closed a $120.5 million transaction – its first in the state of Texas – in collaboration with Burnet, Texas based Hamilton Valley Management, Inc., an owner and manager of affordable multi-family housing in rural areas of Texas. Utilizing the housing industry’s critical 4 Percent Low Income Housing Tax Credit (Housing Credit), Greystone Affordable Development will redevelop, modernize, and secure affordable rental homes for thousands of Texans. 

Hamilton Valley’s portfolio of affordable housing properties for this transaction  includes 23 aged USDA Rural Development Section 515 properties, comprising 802  apartment homes currently serving low-income households in 14 counties across Texas. Substantial renovations include both interior and exterior improvements. Particular emphasis will be placed on bringing the properties, built between 1987 and 2003, up to modern standards, addressing accessibility, functional obsolescence and deterioration. The common area improvements included in this portfolio significantly benefit the residents, particularly the new playgrounds, updated picnic areas, on-site beauty parlors, and new mail facilities. 

The Mission

Rehabilitate critical housing stock across the state of Texas, positively affecting both residents and communities. 

The Partnership

Greystone, property owner, investment partners, Texas office of USDA’s Rural Housing Service, Texas State Affordable Housing Corporation, Texas Department of Housing & Community Affairs, as well as Texas Housing Foundation all came together to preserve over 800 rental units.

The People

The residents of these 23 properties represent families and seniors from a diverse population across the state of Texas. They are very grateful for the opportunity to live in a renovated, affordable community that they can call home. 

Key Partners

• Developer Partner: Hamilton Valley Management, Inc.
• Bond Issuer: Texas State Affordable Housing Corporation (TSAHC)
• LIHTC Allocating Agency: Boston Financial Investment Management, LP
• Subordinate Lender: USDA Rural Housing Service
• Subordinate Lender: Greystone Servicing Company LLC
• Architect: Wallace Architects, LLC
• General Contractor: Great Southern, LLC

Finance Structure

• LIHTC Equity: $19.1M
• Tax-Exempt Bonds: $35.9M
• New Debt (USDA Section 515): $19.3M
• Assumed Debt (USDA 538 Loans): $29.5M
• Other Sources: $16.7M