ELGIN, Ill., Jan. 20, 2015 /PRNewswire/ -- Eight private and public sector sources have stepped forward to fund the renovation and expansion of Central Park Tower (CPT), an 11-story, 150-unit senior high-rise building operated by the Housing Authority of Elgin (Illinois). C. Ray Baker and Associates, Inc., a real estate development and management consulting firm, headquartered in Detroit, Michigan, forged the partnership to provide the approximately $33 million dollars for this effort.
"The Authority is pleased to be able to immediately implement HUD's Rental Assistance Demonstration (RAD) program using highly-competitive, 9% Low Income Housing Tax Credits (LIHTC) as a major source of capital. The marriage between RAD and IHDA's LIHTC program is a model for leveraging financial resources to make large-scale redevelopment a reality," said Damon Duncan, the Executive Director of the Housing Authority of the City of Elgin. "In a town with few public housing units and a need for affordable housing, we've incorporated the major tenets of mixed-finance and mixed-income to redevelop in the best location for senior living."
Central Park Tower, constructed in 1969, is one of thousands of multi-unit, public housing developments in need of capital renovation that may have been unlikely without the financing mechanism made possible under the U.S. Housing and Urban Development's Rental Assistance Demonstration Program (RAD). The RAD program is a HUD initiative to attract private sector funding to help meet an estimated $30 billion dollars in capital costs to replace aging mechanical systems and improve public housing tenant safety and comfort.
C. Ray Baker and Associates, Inc. fills an important niche in the marketplace, providing an end-to-end capacity building service platform that allows small and medium-sized agencies access to real estate market tools and resources traditionally reserved for the larger players. C. Ray Baker & Associates, Inc. combines expertise in multi-layered financing deals with sensitivity for the concerns of smaller Public Housing Authorities that are frequently overlooked by the network of potential funders and larger developers seeking to work in major urban areas.
"We specialize in helping smaller PHA's where we know we can make a real impact," said Carlos Guice, President, C. Ray Baker & Associates, Inc. "We know that non-profit developers use a different set of metrics for success in their PHA renovation projects. That concern for the residents and smaller communities is our starting point as we seek financing and enlist strategic partners to develop community-based solutions to preserve much-needed housing stock. What makes this project work is the experience, development savvy and compassion for the communities exhibited by our strategic partners, particularly Capital Fund Services and Baker Tilly Virchow Krause."
Primary funding for CPT comes from the Illinois Housing Development Authority's LIHTC Program and a HUD FHA 221(d)(4) mortgage. Other funding sources assembled with the help of Chicago-based Capital Fund Services (CFS), a related company of Great Lakes Capital Fund and Baker Tilly Virchow Krause, LLP, a full service accounting and advisory firm. The CPT redevelopment will combine expansion of existing units with a new facility that will include 14 market-rate opportunities and a computer lab, meeting space and medical services for the senior residents. A groundbreaking ceremony is scheduled for early February. For additional information about the project or consultant services provided by C. Ray Baker & Associates, go to www.craybakerassoc.com.
C. Ray Baker and Associates, Inc. is an 8(a) and MBE-certified, full-service consulting firm specializing in Real Estate Development, Program Management and Management Consulting. The firm, founded in 2006 by Chairman and CEO, Charlton R. Baker, has offices in Madison, Detroit and Washington DC.
SOURCE C. Ray Baker & Associates