KANSAS CITY, Kan. (Sept. 20, 2006) – A Kansas affordable senior living community will replace its roof and make other repairs with a $1.55 million refinance provided today by Lancaster Pollard.
Osawatomie Court Apartments, a 54-unit Section 202 complex in Osawatomie, will save more than $9,000 in debt service each year with its new lower interest rate and will fund $120,000 in repairs. A new roof and new siding will extend the life of the facility.
The repairs would not have been possible without a refinance because the existing replacement reserve did not have enough funds to cover such extensive projects. The transaction also includes an increase in the annual replacement reserve deposit to assure Osawatomie Court Apartments’ near and intermediate capital needs are adequately addressed.
“The deposits to this replacement reserve account are key, as they are for all affordable housing properties that rely on limited revenue streams,” said Mike Ashley, vice president in Lancaster Pollard’s Lawrence, Kan., office. “This refinance provides for future planned capital needs and also offers some cushion for unexpected repairs.”
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