NEW YORK, April 27, 2016 /PRNewswire/ -- The Community Development Trust (CDT), a real estate investment trust that provides capital for the preservation and creation of affordable housing, and YES Housing Inc. ("YES"), a company that owns and manages affordable housing across the Southwestern United States, today announced the formation of a joint venture partnership to recapitalize three of YES' properties.
The transaction, which represents New York-based CDT's first equity investment in New Mexico, will fund improvements and ensure long-term affordability for the properties' low-income senior and special needs residents.
In total, the CDT-YES joint venture will preserve 262 units for low-income seniors in Albuquerque, Las Cruces and Roswell, N.M. All of the units will be reserved for seniors and special needs tenants earning below 60 percent of the area median income (AMI). CDT will be investing approximately $4.5 million into the partnership.
The first property that will be recapitalized and preserved through this partnership is Wildewood Apartments in Roswell. Wildewood Apartments consists of 60 units, all of which are covered by a project-based Section 8 contract and are affordable to very low-income seniors and special needs tenants. CDT and YES closed on this first property on April 12 and were able to secure attractive long-term financing from Freddie Mac through Hunt Mortgage Group simultaneous with the closing.
CDT and YES plan approximately $300,000 in capital improvements. Amenities and services include a social services coordinator, laundry facility and detached community room with kitchen. The integrated service includes assistance with benefit enrollment, commodities, transportation, health care services, home management and general information and referrals for community programs. Originally constructed in 1978, the property was previously renovated in 2000 with Low Income Housing Tax Credits (LIHTC) and tax-exempt bond financing.
CDT is also working with YES, through this newly formed partnership, to recapitalize two additional properties in Albuquerque and Las Cruces. CDT's investment in the properties, along with new first mortgages, will finance property improvements and ensure long-term affordability. The partners are working to complete the additional acquisitions as soon as possible.
"Our investment in this portfolio is a commitment to lower-income seniors and those with disabilities throughout New Mexico to ensure their access to quality, safe and affordable housing for the long term," said Joseph F. Reilly, president and CEO of CDT. "We are pleased to work on a project like this as a result of our new partnership with YES. We look forward to completing the recapitalization of the two other properties that are being preserved under this partnership to demonstrate our shared commitment to the creation and preservation of long-term, affordable housing."
"YES Housing Inc. is excited about this partnership with CDT as it furthers our efforts in preserving housing assets that serve vulnerable populations in diverse communities throughout the Southwestern United States," said Chris Baca, YES president and CEO. "Our missions align in that both organizations work at preserving affordable housing and reinvesting in these properties to give them a longer life and a better quality of life to the people both organizations serve. CDT is exactly the kind of organization that meshes with YES's long-term vision and strategic growth plan."
As a CDFI and private REIT with a social impact mission, CDT operates as a double bottom line organization by utilizing creative financial solutions to provide debt and equity capital to underserved real estate markets, all while seeking attractive returns for shareholders.
The Community Development Trust (CDT) is a national investor in affordable housing. Working with local, regional and national partners, CDT makes long-term equity investments and originates and acquires long-term mortgages. In its 15 years, CDT has invested over $1 billion in debt and equity capital to properties in 43 states and regions – helping to preserve and create over 35,000 units of affordable housing. CDT is a private real estate investment trust (REIT), a certified Community Development Financial Institution (CDFI), an approved Fannie Mae affordable housing lender and a member of the Federal Home Loan Bank of New York (FHLBNY).
About YES Housing Inc.
YES Housing Inc. was created by Youth Development Inc. (YDI) in 1990 out of a desire to positively impact the communities it served by providing families a good home in a safe neighborhood with economic and social opportunities that are foundational for growth and success. As an agent of change, YES develops and owns multifamily and commercial developments, integrating services into its developments and revitalizing communities. To achieve that end, YES has three branches to help meet needs in the communities it serves:
- Development – creating/acquiring/rehabilitating affordable housing;
- Sustainability – managing the investment by keeping the developments attractive and running efficiently and;
- Services – connecting residents to meaningful services.
In addition to providing a standard of excellence in affordable housing throughout the Southwest, YES integrates services into many of its developments and was approved as a financial literacy education provider in 2011.
YES strives toward one goal: to help fill an abundant need for safe, affordable, sustainable housing in the communities in which it serves. YES regularly partners with nonprofit and for-profit groups to successfully achieve their common goals. By preserving and creating affordable housing, YES is investing in all communities to protect existing families and future generations.
SOURCE Community Development Trust