$19M deal closes with Western States Housing, U.S. Dept. of Agriculture
Online PR News – 08-May-2016 – IRVINE, Calif. – In a deal that will bring major improvements to 205 New Mexican homes and keep them affordable for the next 30 years, Community Preservation Partners (CPP) has begun renovations on six affordable housing complexes owned by Western States Housing Corporation. The transaction closed in April, and work will continue until December, CPP announced today.
The properties – five in Sunland Park, N.M., and one in Anthony, N.M – were acquired by Western States Housing for $8 million. Additionally, $6.1 million for cover construction costs and more than $1.1 million in cash reserves are being funded with bonds and tax credit equity. The significant reserve funding is a requirement of U.S. Department of Agriculture, which has jurisdiction over affordable rural development projects. CPP’s parent company, WNC & Associates, is a limited partner underwriting the equity. The total rehabilitation cost, which includes soft costs for purchase of equipment, is more than $19 million.
Through this public-private partnership, which also includes the New Mexico Mortgage Financing Authority (MFA), tax incentives will keep residents paying below-market rents for the next 30 years.
“These investments are critical for the community in southern New Mexico,” said Anand Kannan, president of CPP. “Without them, not only would the properties continue to age, but the existing agreements with the MFA would have expired, forcing the rents up to market price.”
The oldest of the six complexes was constructed in 1991.Through the new agreement, all of the properties will received major upgrades, including:
• Energy- efficient improvements, including the installation of Energy Star and low-flow appliances
• State-of-the-art HVAC systems
• Weatherization improvements
• Accessibility improvements, including ramps and paths of travel that comply with the Americans with Disabilities Act
“This is our third transaction with Western States Housing, and we are thrilled to be working with them again to bring all of these positive changes to the working people of southern New Mexico,” said Karen Buckland, director of community preservation for CPP. “It’s through partnerships like these that we can really improve lives and make a difference in the community.”
About Community Preservation Partners: CPP is an affordable housing rehabilitation company that owns more than 4,000 units across the United States. Its mission is to enrich lives and strengthen neighborhoods by recapitalizing, rehabilitating and preserving aging affordable housing communities. CPP provides simple, practical solutions to complex challenges facing housing authorities, nonprofits and investors. For more information visit www.CPP-Housing.com or call Jack Aronson, Director of Development Acquisitions, at (415) 746-0666.