SPRINGFIELD, Pa., April 28, 2020 /PRNewswire/ -- InnoVative Capital, LLC acted as Municipal Advisor to the Tulsa Housing Authority (THA) in the financing of Phase One of THA's Choice Neighborhoods Implementation (CNI) project. Located in Tulsa's Eugene Field neighborhood, this project will bring new affordable/mixed-income housing to replace aging low-income housing, creating the River West community. Phase One is the first of a six-phase housing development that will also include commercial investment in the area's first supermarket, a community center, and other ventures under development.
Phase One was funded through a financing stack, including a HUD CNI Grant, 9% Low-Income Housing Tax Credits (LIHTCs) competitively-awarded by Oklahoma Housing Finance Agency and syndicated by RBC Capital, a construction loan by Bank OZK, charitable donations, a Freddie Mac Forward permanent loan originated by PGIM Real Estate Finance, as well as THA contributed capital. Further financial support was provided by the City of Tulsa, which covered certain required public improvements.
"The financing of River West Phase One was completed at a time of turbulence in the capital markets due to the global pandemic. Despite this obstacle, THA's collateralized mortgage loans were well-priced, and the LIHTC equity investment was syndicated at an attractive level. Lenders and investors appreciated the creditworthiness of the project, as well as the involvement of THA as the developer," said Alan Richman, president & CEO of InnoVative Capital.
"Along with our municipal advisor, InnoVative Capital, more than 40 community partners committed to this project that represents a historic investment in affordable housing in Tulsa," said Aaron Darden, president & CEO of THA. "With the closing of the Phase One financing we are able to proceed with this project that will truly transform a community."
"We are totally committed to the revitalization of Eugene Field. Our personnel and financial investment in this landmark project represent our view that this is a top priority at the THA. We recognize the many issues that need to be addressed daily pertaining to finance, legal, construction, public planning, and resident relocation. I am proud of the results and optimistic for success in future phases of the River West development process. The financial benefits of this new development and improved quality of life is what Tulsa needs and deserves," said Rick Neal, chairman of THA's board of commissioners.
Choice Neighborhoods Tulsa
In 2017, Tulsa was one of five U.S. cities to be awarded a $30 million CNI Grant. THA as grantee, and the City of Tulsa, as co-grantee are leveraging this prestigious grant to revitalize and transform Tulsa's Eugene Field neighborhood and promote economic development. The more than $200 million Choice Neighborhoods Tulsa project will result in the development of the River West community, consisting of six mixed-income housing developments totaling 460 units. River West represents the largest investment in Tulsa's affordable housing. In addition to the CNI Grant, other charitable investments will include $12 million from the Anne and Henry Zarrow Foundation and $3.25 million from George Kaiser Family Foundation. Phase One consists of 74 new housing units financed with a $19 million multi-funding stack including CNI grants, debt financing, tax credit equity, donations, and THA investments.
About the Tulsa Housing Authority
THA has been serving the community since 1967, providing affordable housing solutions for Tulsa's most vulnerable populations. THA is governed by a five-member Board of Commissioners which establishes policies, approves budgets, and provides general direction to the THA President & Chief Executive Officer and executive staff. THA provides publicly assisted housing comprised of traditional public housing, mixed-finance sites, and housing vouchers. THA provides assistance to more than 20,000 individuals or 7,200 families. THA owns and manages 13 communities, four Section 8 Project-Based Rental Assistance communities, and manages the Housing Choice Voucher program. THA serves more than 20,000 Tulsans, providing affordable housing in tandem with supportive services to help all Tulsans thrive. THA is creating a better Tulsa by transforming lives and communities.
About InnoVative Capital LLC
Founded in 2000, InnoVative Capital is a financial advisor and mortgage bank for public housing authorities, hospitals, municipalities, local governments, and senior living providers. As an SEC Registered Municipal Advisor, InnoVative Capital structures municipal bonds, negotiates tax credits and equity investments, and represents its clients in the execution of mortgage-backed financings incorporating HUD, USDA, Freddie Mac, Fannie Mae, and conventional bank loans. As a HUD mortgage lender and USDA banker, InnoVative Capital delivers low-cost capital to underserved and economically disadvantaged communities.
Alan Richman, President/CEO of InnoVative Capital
Phone: 610-543-2490 x101
Email: [email protected]
SOURCE InnoVative Capital, LLC