Sims Mortgage Funding, a subsidiary of HJ Sims, secured a $7.035 million HUD loan for Marien-Heim of Sunset Park, a 169-unit Section 8 senior apartment community in Brooklyn, New York. It is owned by a local, not-for-profit community development organization. That owner had previously obtained an $8.313 million HUD loan in 2012 that refinanced its Section 202 Direct Loan, funded capital reserves and repairs, generated annual debt service savings and earned them a development fee.
But the current low interest rate environment prompted another refinance on Sims’ recommendation. HUD approved the interest rate reduction proposal in about 75 days, and the loan closed 29 days later. Sims lowered the interest rate by 28%, and annual debt service savings should reach approximately $48,000 through the remaining term of the loan as a result. That provides for a larger replacement reserve fund and financial security for future capital needs.
