Orange Village Apartments were originally built in 1980 and financed through the HUD Section 221(d)(4) mortgage program. The property underwent full HUD Mark-to-Market Debt restructuring in 2001. The property is comprised of 82-units, with a mix of (12) one, (20) two, (47) three and (3) four bedroom apartments. Orange Village is dedicated to serving families and disabled individuals in the City of Hermitage and surrounding communities in Mercer County, Pennsylvania. 80 units at the property are covered by a project-based Section 8 rental subsidy contract. Approximately 50% of the units are set-aside to households earning 50% or less of the Area Median Income (AMI). The remaining units are restricted to households earning 60% or less of AMI.
With the assistance of Evergreen Partners, Preservation Housing Partners (PHP) acquired the property in July 2014. The preservation efforts included substantial renovations which were completed in July 2015. The renovations updated both the interior and exterior of the buildings, modernized the units and replaced the aging building systems such as the windows, heating/cooling and hot water systems. Evergreen and PHP used a combination of financing sources to acquire and renovate Orange Village Apartments. Equity was raised through the sale of 9% Low Income Housing Tax Credits to PNC Bank NA. Orange Village has also secured a new HUD 221(d)(4) permanent loan and a portion of the existing HUD Mark-to-Market debt as new project financing. To compliment the substantial physical improvements being made to Orange Village, Evergreen has also entered into a new 20-year project-based Section 8 rental subsidy contract to help support the long-term affordability of the property.
Orange Village Apartments
200 Orange Drive
Hermitage, PA 16148
Phone: (724) 346-4096
First Mortgage Financing: New debt financing was provided by M&T Realty Capital through the HUD 221(d)(4) program.
Mark-to-Market Debt Assignment: A portion of the remaining HUD mark-to-market (M2M) mortgage notes were assumed by PHP as part of the transaction. Approval of the assumption of the piece of M2M debt came through HUD’s Office of Affordable Housing Preservation (OAHP).
Equity Financing: -“PNC Bank NA provided equity to the project via the sale 9% Low Income Housing Tax Credits, which were provided by Pennsylvania Housing Development Authority.”-
Section 8 Contract Renewal: Yes, a new 20-year HAP contract effective May of 2014.
Over $5.5 million in total rehabilitation is planned for Orange Village Apartments, including:
Tax Credit Allocating Agency
Pennsylvania Housing Finance Agency
Local HUD Office
City of Hermitage
HUD Lender/First Mortgage Lender
M&T Realty Capital
PNC Bank NA
Honigman Miller Schwartz & Cohn LLP
Nixon Peabody LLP
High Swartz LLP
Vorys, Sater, Seymour & Pease LLC
The Architectural Team
The Whiting-Turner Contracting Company