Kiva Apartments | Permanent Loan Case Study

Community Resources and Housing Development Corp. 

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IMPACT

NeighborWorks Capital was very responsive to our lending needs. They understood the challenges and provided a lending solution that works for us.

Arturo Alvardo,
Executive Director, CRHDC
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Kiva Apartments
SYNOPSIS

After serving rural Alamosa, CO for several years, Community Resources and Housing Development Corp (CRHDC) sought to address the needs of the greater San Luis Valley, a community facing high rental rates and home prices due to a tight housing market. They found an opportunity to expand their geographic impact with a mixed-use portfolio acquisition that included Kiva Apartments, a 64-unit building providing much needed affordable housing to the area.

CHALLENGE & SOLUTION

CRHDC needed to keep rents affordable without subsidy financing. As they worked to get rents to the right level in their market, NeighborWorks Capital offered an innovative approach with a debt service reserve by assuming that in the next few years, CRHDC could increase their rental income while remaining affordable in the market. NeighborWorks Capital sized the loan based on these projections and provided a $6.3 million permanent loan for Kiva Apartments with a debt service reserve to cover DCR shortfalls in the first two years of rent transition.

ABOUT NEIGHBORWORKS CAPITAL

NeighborWorks Capital fills a critical resource gap by investing in communities that have been underserved by traditional financial institutions. They provide flexible, responsive, and affordable financing solutions for residential and commercial real estate development and business expansion. NeighborWorks Capital is a national nonprofit, certified Community Development Financial Institution rated by Aeris-Insight serving members of the NeighborWorks America network in all 50 states, Puerto Rico, and the District of Columbia.

Contact Us

Lanie Wasserman

Senior Loan Officer
301-789-6857

Michael Haas

Senior Loan Officer
240-517-3586
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