Background & Goals
Park Ridge Commons is part of a major regional health system whose mission is to provide safe, comfortable affordable housing for seniors. The 21-year-old property had been well maintained, but expensive upgrades were looming. Park Ridge Commons had been trying to refinance for three years in order to reduce its interest rate and make major renovations. The 50-unit community then hired Lancaster Pollard to move the process forward.

Sources of Funding & Outcome
 Lancaster Pollard underwrote a $1.89 million refinance that provides $324,361 for repairs to the property and a developer fee of $36,446. Park Ridge Commons will save more than $11,000 annually in interest payments.

The loan is fixed at a low interest rate for 35 years. This, combined with regular deposits to the reserve for replacement, will help ensure financial stability so Park Ridge Commons can continue to serve as a premier affordable housing community.

The repair funds will pay for new security and fire doors, bathroom and kitchen refurbishments, and an office expansion. New energy-efficient windows will be easier to open and reduce residents’ heat bills.  Interest rate savings already have been earmarked to provide resident-requested transportation services to grocery stores and area malls, Vice President of Housing Don Felter said.

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.