Garden Court Apartments

Garden Court Apartments was built in the early 1970’s and financed through the HUD Section 236 Mortgage Program. The property has a mix of 264 one, two and three bedroom multifamily units. 130 units at Garden Court are covered by a project-based HUD Section 8 rental subsidy contract. The acquisition and renovation of Garden Court Apartments is a joint venture between Evergreen Partners and Security Properties (Co-General Partner). The property was recapitalized using a combination of new debt financing provided by Deutsche Bank Berkshire Mortgage, Tax Credit Exchange Funding provided by Pennsylvania Housing Finance Agency (PHFA) and HOME Funds provided by the City of Lancaster.

Evergreen Partners began substantial interior and exterior renovations at Garden Court in October 2009. As part of the plan to stabilize and preserve Garden Court, the existing Section 8 subsidy at the property will be extended to a 20-year term post renovation to ensure that ongoing affordability remains.

Preservation Transaction Description

First Mortgage Financing: New debt financing was provided by Deutsche Bank Berkshire Mortgage through the HUD 221(d)(4) program.

HUD Section 236(e)(2): Interest Reduction Payments Decoupling: Under the HUD 236(e)(2) program, the remaining stream of interest reduction payments were “decoupled” from the original 236 mortgage and used to support additional new debt provided by Deutsche Bank Berkshire Mortgage.

Tax Credit Exchange Program: Over $11 million in Tax Credit Exchange Funding was allocated to the project by Pennsylvania Housing Finance Agency.

HOME Funds The City of Lancaster awarded $150,000 in HOME Funding to the project .