Property Type:
Section 202 Senior Housing
Location:
Chicago, IL
Objective:
Refinance/Renovation/ Loan consolidation
Financing Amount:
$9.77 million
Sources of Funding:
GNMA fixed-rate securities insured by the FHA Sec. 223(f) program
Closing Date:
Feb. 28, 2007

Background & Goals
Woodlawn Community Development Corporation has worked for decades in the interests of Woodlawn residents on Chicago’s South side. With a long history of advocacy for fair landlords, community activism and work against urban renewal, it continues its efforts by providing hundreds of units of affordable housing.

Four properties offering a total of 159 units had been financed with high-interest-rate loans in the 1980s and had reached the point that they needed renovations. Deferred maintenance and other projects included new roofs, new cabinetry and vanities, and a security system with cameras requested by residents.

Sources of Funding & Outcome
Lancaster Pollard structured and underwrote three refinances for four properties. The refinances combined two Sec. 202 loans, provided  $497,765 for repairs, and saved a total of $50,290 in annual interest expense. The refinancings also funded three separate replacement reserves, providing increased capital on the properties’ balance sheets.

Refinancing to consolidate the loans reduces the lean staff’s administrative burden. The debt service savings will allow Woodlawn leadership to further improve the properties for many years to come. 

All four properties will have security systems installed to fulfill residents’ requests. Additionally, some will make repairs including new carpeting and cabinets. parking lot repairs and deferred maintenance projects.

Lancaster Pollard is the nation’s leading underwriter of Sec. 202 refinance loans. In fiscal year 2006, according to HUD data, the firm refinanced more Section 202 direct loan dollars than any other lender in the country.