On April 9, 2015, the Housing Authority of the City of El Paso (HACEP) and its development, private equity and lending partners closed Phase I of the largest Rental Assistance Demonstration (RAD) project in the country. Hunt Development Group has joined HACEP in undertaking the development, preservation and rehabilitation of all of the 1,590 existing low-income housing units across 13 separate public housing apartment complexes in El Paso, Texas in connection with the conversion of those units to Section 8 RAD units.
The project utilized several forms of financing, including private equity, tax-exempt loans and bonds and subordinate loans. Freddie Mac and Centerline Mortgage Partners, Inc., a wholly owned subsidiary of Hunt Mortgage Group, LLC, provided $59,625,000 in long-term, senior debt financing through Freddie Mac’s new Direct Purchase of Tax-Exempt Loans program. The conduit lender for this tax-exempt loan, the Alamito Public Facilities Corporation, also issued $65,375,000 in tax-exempt, short-term bonds, in support of the project.
Ballard Spahr was honored to be a part of this historic transaction, closing the nation’s largest RAD conversion to date, ensuring that over 1,500 families will have affordable and sustainable housing available on a long-term basis. The financing and structuring considerations and issues addressed in this transaction provide a strong basis for future deals of increasing complexity.