financing

Affordable Housing Secures HUD Financing from HJ Sims

Much of the investor attention in seniors housing is paid towards the higher-end, luxury communities. Those properties are able to charge much higher rents and usually operate at higher margins. But a huge swath of the senior population cannot come close to afford living in those communities, making the demand for middle- and low-income units very strong in some markets.

With that, HJ Sims arranged a cash-out refinance for a 125-unit affordable seniors housing community in Middletown, Pennsylvania (Harrisburg MSA) to help its owner both distribute equity to its partners and invest in major upgrades to the community.

Originally built in the 1980s, it operates under a Section 8 HAP Contract administered by the Pennsylvania Housing Finance Authority. HJ Sims underwrote a new $5.285 million HUD loan, with a 35-year term, and also helped renew the community’s Section 8 HAP contract for another 20 years.

 

 

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