A collaborative partnership of three industry-leading providers of housing development, construction and social services 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, the partnership was awarded the opportunity to transform vacant underutilized land and develop sites on additional VA campuses.
The two-phase new construction project was intended to provide permanent, supportive housing and services to low and very low income veterans. To achieve affordability for future tenants, the sponsor needed to leverage highly competitive federal and state funding programs.
Familiar with Baker Tilly’s extensive multifamily housing development experience in Illinois, the partnership 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.
With Baker Tilly’s assistance, the project 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 state donation tax credits, county HOME funds, and 56 project based rental vouchers.
The project 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 benefit from onsite support services as well as specialized facilities and service agencies operating within the campus.
Since this project, Baker Tilly has also helped the partnership secure LIHTC financing for additional veterans housing projects.
For more information on this topic, or to learn how Baker Tilly real estate specialists can help, contact our team.
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