Cherokee Springs

Cherokee Springs is a 134-unit existing scattered site rental community located in Cedartown, Polk County, Georgia. The project consists of five separate communities that have been combined into one mortgage. Under HUD’s Rental Assistance Demonstration (RAD) program, the property converted its existing public housing subsidies into a long-term Section 8 contract. Utilizing HUD’s Section 221d4 program for insurance advances, AGM successfully obtained a HUD insured mortgage of $4,062,000 for the project’s substantial rehabilitation with a fixed interest rate and a 40-year term. The Cedartown Housing Authority (CHA) issued $7,000,000 in tax-exempt bonds.  Equity of approximately $5,475,000 was provided through the sale of 4% low-income housing tax credits (LIHTC). Additional sources include approximately $913,000 in Capital Funds loaned to the partnership from CHA. Site control was achieved with a $2,925,000 up front ground and building lease payment from the partnership to CHA, evidenced by a note.