Development partnership succeeds in first attempt to secure competitive financing for the construction of a new $20 million veterans housing building

Our client’s need

Communities for Veterans (CFV) is a collaborative partnership of three industry-leading providers of housing development, construction, and social services. CFV aims to provide veterans meaningful, supportive, and affordable housing communities on and proximate to VA medical center campuses across the country. Through a Veterans Administration proposal process, CFV was awarded the opportunity to transform vacant underutilized land on the Hines VA Medical Campus in Illinois, as well as develop sites on additional VA campuses.

The two-phase new construction project in Hines, known as Freedom’s Path, was intended to provide permanent, supportive housing and services to low and very low income veterans. To achieve affordability for future tenants, CFV needed to leverage highly competitive federal and state funding programs.

Baker Tilly solution

Familiar with Baker Tilly’s extensive multifamily housing development experience in Illinois, CFV selected us to provide financial advisory services including application modeling, financial structuring, and program applications. The transaction team was able to leverage existing relationships to secure Project Based Section 8 vouchers which, in turn, strengthened the potential for other forms of financing.

Results achieved

With Baker Tilly’s assistance, Freedom's Path was able to assemble layered financing and leverage commitments to apply for and be awarded competitive 9 percent Low-Income Housing Tax Credits (LIHTC) in its first funding attempt. Other financing included Illinois donation tax credits, county HOME funds, and 56 project based rental vouchers.

Freedom’s Path offers 36 studio and 36 one-bedroom units. The elevator building was designed to meet the unique needs of its future residents while integrating with the campus’s aesthetics. Plans also called for a LEED Silver certified building with efficient appliances and systems designed to mitigate the building’s environmental impact while reducing overall operating expenses. Residents receive support services onsite as well as through the specialized facilities and service agencies operating within the campus.

Since this project, Baker Tilly has also helped CFV secure LIHTC financing for additional veterans housing projects in Ohio and Washington State.

“Baker Tilly was instrumental in helping us navigate the LIHTC intricacies of what sometimes amounts to fitting a square block into a round hole. They thoroughly understand the process of financing housing developments, and ensured Freedom's Path stood out to investors. I greatly look forward to our continued work together on more critical veterans housing opportunities.”

 

– Don Paxton, Manager

For more information on this topic, or to learn how Baker Tilly real estate specialists can help, contact our team.


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