Lancaster Pollard helps health care, senior living, affordable housing and private education organizations expand and improve their services by providing financial advice and financing solutions. Lancaster Pollard’s services enable hospitals, assisted living facilities, nursing homes, rural housing properties and private schools to develop the financial plans and secure the funding necessary to continue to serve their communities and lets them focus on what’s truly important –their residents, their patients, and their students.
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Home > News > Press Archive > 5-9-07 Posada del Sol 202 Refi

Refinancing provides for reimbursement that will further affordable housing efforts

Property Type:
Sec. 202 affordable senior housing
Location:
Kansas City, Missouri
Objective:
Reduce debt service and fund repairs
Financing Amount:
$2.4 million
Sources of Funding:
Fixed-rate notes insured by the FHA Sec. 223(f) program
Other factors:
Refunded $118,550 in payables to its management agent
Closing Date:
May 9, 2007

Background & Goals
Posada Del Sol is an architecturally unique 60-unit affordable housing community. Built in the early 1980s at the prevailing interest rate of 9.25 percent, it needed to fund repairs and reduce its debt service. The property also wanted to create a financial structure that would eliminate the need for support from its management agent, Westside Housing Organization.

Sources of Funding & Outcome
A $2.4 million refinance:

  • Provides $158,585 in repairs
  • Provides a $24,589 developer's fee
  • Allows for an initial deposit of $206,377 to Replacement Reserves
  • Saves $65,196 annually in debt service

In order to maximize the amount available for near-term repairs, Lancaster Pollard structured the refinance with an additional incremental deposit to Replacement Reserves. Posada del Sol will be able to fund projects from this account and from debt service savings. Residents are looking forward to improvements including new cabinetry and countertops and new flooring in the atrium, where residents gather and special events are held.

Posada del Sol also will be able to reimburse its management agent $118,550 that had been accumulated over several years. Debt service savings will allow it to operate without parental subsidies. Westside Housing Organization will be able to use this reimbursement to further its efforts to promote affordable housing, home ownership and resident engagement in Kansas City neighborhoods.

Lancaster Pollard is the nation’s leading underwriter of Section 202 refinance loans. From the beginning of fiscal year 2006 through the first half of FY07, according to HUD data, the firm refinanced more Section 202 loans and units than any other firm in the country.