SHA7 is a 338-unit existing scattered site rental community located in Spartanburg, Spartanburg County, South Carolina. The project consists of seven 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 $10,500,000 for the project’s substantial rehabilitation with a fixed interest rate and a 40-year term.
Equity of approximately $8,875,000 was provided through the sale of 4% low-income housing tax credits (LIHTC). Additional sources include approximately $1,000,000 in Operating Reserves loaned to the partnership from Spartanburg Housing Authority (SHA). Site control was achieved with an upfront ground and building lease payment from the partnership to SHA, evidenced by a note.
