With a growing population and rising incomes in Fort Mill, South Carolina, multiple private investors submitted bids to acquire the Forest Ridge Apartments as soon as it went up for sale. The 136 units at Forest Ridge is one of very few affordable apartment complexes in this area and also is home to many workers who commute to Charlotte, North Carolina. With the units in danger of conversion to market rate, Charlotte-Mecklenburg Housing Partnership (CMHP) decided to extend its services the short distance across the state border. The seller of the Forest Ridge Apartments was seeking to lift the LIHTC affordability requirements by exiting through the qualified contract process (an option to “opt-out” of the tax credit program after the first 15 years).
The seller was required to offer a nonprofit the first right of refusal to purchase the property, and if they couldn’t find one, they could sell to the general market. Community Housing Capital (CHC) brought a coalition of mission-driven lenders to the table to meet the seller’s requirements of an expedited loan commitment and closing. As the lead lender, CHC approved a $12.15 million loan that included a $9.35 million participation with Morgan Stanley Bank, and a $1.0 million participation with the National Housing Trust. All parties worked simultaneously to perform due diligence by allocating the necessary resources for underwriting, legal, and closing that all came together and smoothly closed in 35 days.
The $12.15 million acquisition loan from Community Housing Capital (CHC) preserves 136 apartments that are affordable to residents with income less than 60% of the area median income and saved CMHP approximately $600,000 in capital contributions.
CMHP provides a comprehensive range of affordable housing services focused on revitalization, education, and development. At the time of CHC’s loan, CMHP had created 2,232 new homeowners, counseled 17,715 families in the City of Charlotte and Mecklenburg County, and continues to manage 2,241 rental homes. In recent years, CMHP has expanded its footprint to include neighboring South Carolina and Georgia.
