Carmen Capital refinances and funds repairs for a 202 property in PA

The Problem:

The 202 project has had some difficulty meeting some of their typical operating expenses in the past, primarily due to the large debt service burden. Capital improvements are also becoming necessary as the project is now over 20 years old.

The Solution:

The partnership turned to Joe Carmen, to utilize FHA’s 223(f) program to provide 35 year, fixed rate financing for the properties. The loan funded repairs, a development fee and reduced debt service costs. As part of the financing, funds were raised to address many long-term capital replacement issues identified by project management and to increase the initial deposit to the replacement reserve.

Joe Carmen, had the following to say:

“When it comes to affordable housing projects including Section 202 elderly and handicapped housing, Section 8 HAP properties, tax credit properties and other rent-restricted projects, sooner or later property managers seem to have problems making ends meet.