COLUMBUS, Ohio (Sept. 20, 2006) – As energy costs rise nationwide, a senior apartment community in Marion, Ohio, is taking steps to reduce its costs. Marion Towers II, a 45-unit affordable housing community, will replace windows and trim using funds made available by a $2.66 million refinance.
The refinance, provided by Ohio-based investment and mortgage banking firm Lancaster Pollard, reduces the property’s debt service and provides more than $374,000 in immediate repairs and upgrades. In addition to installing new energy-efficient windows and window trim, Marion Towers II will replace a 420,000-gallon hot water heater original to the 1987 building.
“Energy costs are expected to continue rising, and they can become a hefty bill for older affordable housing properties that are less energy efficient,” said Tanya K. Hahn, senior vice president of Lancaster Pollard. “Refinancing has recently become a viable option for preserving affordable senior living units, and Marion Towers II offers an excellent example of how property owners can take advantage of HUD underwriting changes to improve their finances and their properties.”
Marion Towers II is a HUD Section 202 affordable senior living community. In 2004 HUD revised its underwriting criteria to make refinancing these properties a more efficient option, thereby creating a way to reduce debt service and finance necessary repairs. Lancaster Pollard is completing similar transactions with more than 100 properties nationwide.
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