4% and 9% Hybrid LIHTC Portfolio

Property Type: Section 515

A complex recapitalization and renovation process that brings energy efficiencies and renewed housing for residents of 14 properties across Indiana.

Project at a Glance

The pandemic created the need to completely recalibrate the way Greystone executed their traditional rapid (same day) and in-place rehabs. However, with new processes in place and the heightened focus on safety of residents and contractors at the forefront of planning, Greystone anticipates a 19-month construction process for the Indiana portfolio.  Funding sources, organized by Greystone’s experienced team, included a rare mix of both 4% and 9% tax credits and proved critical to this transaction.

The Mission

To contribute to the preservation of critical housing stock across the state of Indiana.

The Partnership

Greystone Affordable Development partnered with property owner and operator Justus Property Management, Inc. to preserve these properties.  The redevelopment was part of  Indiana’s “Moving Forward” Rural Development program, which launched in 2015 by Indiana Housing and Community Development Authority (IHCDA) and Energy Systems Network (ESN).  This program was designed to create affordable housing that increases quality of life while decreasing cost of living for low to moderate income individuals and families.

The People

Collaboration with owners, investment firms, state agencies, and others to rehabilitate properties and improve communities.

Key Partners

  • Developer Partner: Justus Property Management, Inc.
  • Bond Issuer: Indiana Housing and Community Development Authority (IHCDA)
  • LIHTC Allocating Agency: Boston Financial Investment Management
  • Subordinate Lender: USDA Rural Development
  • Subordinate Lender: Greystone Servicing Company
  • Architect: Wallace Architects LLC
  • General Contractor: Aapco Group

Finance Structure

  • LIHTC Equity: $12.4M (combined 4% and 9% Housing Credits)
  • Tax-Exempt Bonds: $10.6M
  • Assumed and Subordinated Debt: $6.6 M
  • Senior Debt: $14.7M
  • IHCDA Revolving Loan Fund: $1M
  • Other Sources: $236,000
336 Affordable Housing Units to Be Constructed
$45.6M Total Development Costs
14 Number of Properties

“Greystone Affordable Development’s guidance and expertise in this redevelopment has been truly invaluable to our team, from knowledge on tax credits to sustainability. Even with the added complexity of a pandemic, working on this process with them was nothing short of incredible, and we are grateful for the positive outcome we are able to provide to the families living in our communities.”

Affordable Housing Owner Indiana
Together, we can change lives.