Heritage House was originally built in 1975 and financed through the HUD Section 236 mortgage program. The property is comprised of 166 one bedroom apartments and serves seniors 62 years of age or older and/or disabled individuals. 33 units at the property are covered by a project-based Section 8 rental subsidy contract and the remaining 133 units are supported by project-based Section 8 vouchers. The Section 8 vouchers were made available by the Independence Housing Authority.
Evergreen Partners in partnership with Senior Housing Group acquired Heritage House in August 2015. The property was acquired using conventional financing made available by PNC Bank N.A. Heritage House was acquired with the goal of preserving the property as affordable housing. In December 2015 we received an award of 4% Federal and State Low Income Housing Tax Credits (LIHTC) and HOME Funds from the Missouri Housing Development Commission (MHDC). We are expecting to close on the new financing and begin the preservation efforts at the property in 2016.
The renovations will update both the interior and exterior of the buildings, modernizing the units and replacing the aging building systems such as the windows, heating/cooling and hot water systems. In additional to the resources provided by MHDC, Heritage House will also utilized a new HUD 221(d)(4) loan as new permanent project financing. To compliment the substantial physical improvements being made to the property, we will also enter into a new 20-year project-based Section 8 rental subsidy contract to help support the long-term affordability of the property.
660 N. Spring Street
Independence, MO 64050
Tax-Exempt Bond Financing: Construction period tax-exempt bonds will be issued to the project by the City of Independence Industrial Development Authority (IDA). Red Capital Markets LLC will be acting as the bond placement agent.
First Mortgage Financing: New debt financing will be provided by Red Mortgage Capital LLC through the HUD 221(d)(4) program.
Secondary Financing - HOME Loan: An award of HOME Funds will be made by MHDC to support the preservation of the property.
Equity Financing: The preservation of Heritage House will utilize investor equity generated by the sale of Federal and State 4% LIHTC. PNC Bank will be purchasing the Federal 4% LIHTC and Sugar Creek Capital will be purchasing the State 4% LIHTC.
Section 8 Contract Renewal: Yes, a new 20-year HAP contract will be requested from HUD.
Over $7.2 million in total rehabilitation is planned for Heritage House, including:
Senior Housing Group
Tax Credit Allocating Agency
Pennsylvania Housing Finance Agency
Local HUD Office
HUD Kansas City
City of Independence
Tax Exempt Bond Issuer
City of Independence Industrial Development Authority
HUD Lender/First Mortgage Lender
Subordinate Financing Lender
Missouri Housing Development Commission
Federal Equity Investor/Partner
PNC Bank NA
State Equity Investor/Partner
Sugar Creek Capital
Honigman Miller Schwartz & Cohn LLP