From closing the first Department of Housing and Urban Development-insured loan in the country in the early 1960s to our current representation of leading national financial institutions, nonprofit and for-profit developers, syndicators and government agencies, Dykema has been a leader in the affordable housing and community development industry.
Our representation of lenders to the affordable housing and community development industry is supported by our thorough understanding of complex federal, state and local regulatory requirements and of diverse funding sources such as tax credit equity, government loans, subsidy financing, grants and tax-exempt or taxable bonds. Representative financings include: construction, bridge and permanent mortgage lending; non-mortgage secured equity bridge lending; sponsor loans in new markets tax credit transactions; private placement of tax-exempt bonds; and letter of credit enhancement of tax-exempt bonds.
We represent developers of a variety of affordable housing and community development projects, ranging from low-income rental units and independent senior living facilities to mixed-income projects and mixed-use developments, advising them on the full spectrum of issues, such as:
- Condominium creation
- Construction, engineering and architectural contracts and disputes
- Contract drafting, review and negotiation
- Corporate structuring
- Environmental, wetlands and Brownfield issues
- Financing and tax issues, including negotiation of partnership and operating agreements
- Due Enforceability and Tax Legal Opinions
- Property tax abatements or PILOTs
- Site acquisitions and dispositions
- Property management
- Zoning, land use and entitlements issues
- Representing the developer in a 185-unit affordable housing complex utilizing $20 million in State Neighborhood Stabilization Funds (NSP), $3 million in City of Detroit HOME Funds, approximately $1 million in State Brownfield Credits and a $4 million tax exempt bond loan from the State. Currently, a State foreclosed property in deteriorated condition, this development is receiving the largest NSP award to date in its state. In addition to affordable housing, the development will offer supportive services for tenants and a redeveloped City park.
- Coordinated all closing and real estate matters in the redevelopment of an administrative office building—an adaptive reuse project that will house 155 formerly homeless individuals while providing on-site supportive health and social services. The building also will house administrative offices to provide social services to homeless individuals metropolitan-wide. The residential rental portion of the building was valued at $32 million and was financed with Low Income Housing Tax Credits, State and Federal Historic Tax Credits, City, County and State HOME dollars, and private foundation dollars.
- Representing the purchasers in their acquisition of a former pharmaceutical building in order to do an adaptive reuse project that will create 80 units of affordable assisted living for seniors plus direct services through the PACE program in collaboration with a local hospital. A project of first impression in Detroit, it is only the second affordable assisted living project for seniors in Michigan. The project is funded by Low Income Housing Tax Credits, City, County and State HOME dollars, project-based vouchers from HUD, Brownfield Tax Credits, private foundation funds, and developer equity.
- Represented a developer of senior housing villages throughout Michigan, including developments in cities in Oakland County, plus Bay City, Jackson, Kalamazoo and Port Huron. Most projects were funded primarily through the HUD Section 202 Program, which provides capital advance dollars for construction and permanent financing, as well as, project rental assistance.
- Represented a developer rehabilitating the vacant, former Sears Building in downtown Pontiac. Once complete, the building will offer 40 loft-style apartments and 80,000 square feet of commercial space. Financing for the building included New Markets Tax Credits, Neighborhood Stabilization Program, State and Federal Historic Tax Credits, and developer equity. Development represents a $20 million investment in a functionally obsolete downtown building.
- Represented the lender in a $69 million first lien construction loan for the development of 208 units of for-sale market rate and affordable condominiums in a mixed income project, together with the more than $14 million private placement of tax exempt bonds, secured by a second lien mortgage, for the construction and equity bridge financing for 72 condominium units to be used as public housing units. The project was also funded by the syndication of Low Income Housing Tax Credits; a CHA HOPE VI Loan, and City of Chicago TIF financing.
- Represented the lender in a $11.85 million construction loan and $1.15 million permanent loan, secured by a first-lien mortgage, for the construction of 72 units of affordable rental housing. The project was also funded by the syndication of Low Income Housing Tax Credits and a subordinate loan made by the Indiana Housing and Community Development Authority.
- Represented the lender in a $13.5 million construction and equity bridge loan, secured by a first-lien mortgage, for the construction of 112 units of mid-rise mixed income rental housing. The project was also funded by the syndication of Low Income Housing Tax Credits; a Chicago Housing Authority (CHA) HOPE VI loan; a City of Chicago HOME loan; a Chicago Housing Authority loan from the proceeds of the sale of Illinois Affordable Housing Tax Credits; a Chicago Housing Authority Loan bridging a City of Chicago TIF loan; and a Fannie Mae permanent loan.
- Represented the lender in a $10.3 million first lien construction loan for the development of 39 units of affordable rental housing through the adaptive reuse of a historic structure in Traverse City, Michigan. The project was also funded by the syndication of Low Income Housing Tax Credits, the syndication of State of Michigan Historic Tax Credits and the syndication of Michigan Brownfield Tax Credits.
- Represented the lender in a $5 million bridge loan, secured by a leasehold mortgage, assignment of leverage loan documents and assignment of equity interests to the sponsor/leverage lender in a New Markets Tax Credits transaction for the construction of a grocery store and the acquisition of a shopping center. The project was also funded by the syndication of New Markets Tax Credits; QLICI loans to project owner, and Tax Increment Financing (TIF) funds from the Village of West Milwaukee.
- Represented the lender in a $4.25 million private placement of tax-exempt bonds and roughly $4 million bridge loan, secured by a pledge of all partnership interests of the borrower, for purchase and renovation of 210 units of affordable rental housing. The project was also funded by the syndication of Low Income Housing Tax Credits and Historic Tax Credits; a HUD-insured Section 221(d)(4) first mortgage loan; an Illinois Housing Development Authority (IHDA) Financing Adjustment Factor (FAF) loan; developer bridge and construction financing; a project-based Section 8 contract; and an Illinois Department of Commerce and Economic Opportunity (DCEO) grant.
- December 20, 2016
- October 3, 2013
- August 2, 2013
- September 14, 2012
- May 11, 2012
- April 20, 2012
- January 4, 2012
- July 17, 2012
- February 10, 2012
- Dykema and Reznick Group Host "Strategies for Making an Affordable Housing Deal Work in Michigan" SeminarNovember 15, 2011
- June 21, 2011