Freddie Mac and Boston Financial Investment Management have completed an affordable housing investment. The $5.5 million low-income housing tax credit fund equity investment is for the rehabilitation of Riverwood Village Apartments, a Section 8 family property in Russellville, Ark. The complex consists of 72 units within eight, two-story walk-ups originally built in 1976.
“The preservation and rehabilitation of Riverwood Village will have a tremendous positive impact on the families that live there as well as the surrounding community of Russellville,” said Sarah Laubinger, executive vice president of Boston Financial. “We look forward to working together to further our shared mission of bringing safe, quality and affordable housing to communities across the country.”
The investment was made through a LIHTC that Freddie has closed with Boston Financial, the third closing since re-entering the market in September. The $100 million fund is the first managed by Boston Financial. The LIHTC program finances affordable rental housing in the U.S.
The fund will focus on transactions in areas that have been underserved over the past decade, such as rural communities, four percent LIHTC financing and developments that provide intensive supportive services for their residents.
Among planned improvements to the apartment are exterior and interior renovations, including energy efficient windows, HVAC system upgrades, energy efficient lighting, new flooring, and kitchen and bathroom replacements. Several community amenities will be upgraded or added as well, including a new playground, community rooms, a fitness center, a business center, and library and laundry rooms. Six of the units will be made handicap accessible.
“The first investment through the fund will provide for a full renovation of Riverwood Village,” said David Leopold, vice president of targeted affordable sales and investments at Freddie Mac. “The 72 affordable housing units were built more than 40 years ago and are in serious need of rehabilitation.”
