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NCSHA & EIG Introduce Three Opportunity Zone Case Studies
The National Council of State Housing Agencies (NCSHA) and Economic Innovation Group (EIG) published three case studies of Opportunity Zone developments in Florida, Maryland and Ohio. The studies are the first in a new series of Opportunity Zone development profiles that cover project financing, community data and the developments’ projected economic development impact. The first three case studies focus on housing affordability and community revitalization efforts.
The projects consist of:
Parramore Oaks (Orlando, FL). This energy-efficient building, under development by Alliant and Invictus Development, offers 97 affordable and 24 market-rate apartments, and is in a neighborhood that is a city priority for reinvestment. It’s one of the first developments that combines the Opportunity Zone tax incentive with 9% Housing credits allocated by the Florida Housing Finance Corp. SunTrust Community Capital provided the equity investment, a construction loan and permanent financing; the Orlando Community Agency contributed additional debt.
Ox Fibre Apartments (Frederick, MD). EquityPlus is redeveloping an historic paintbrush factor into 83 affordable apartments. The financing includes 4% Low Income Housing Tax Credits from the Maryland Department of Housing and Community Development, federal historic credits, Opportunity Zone equity, tax-exempt permanent financing from Freddie Mac, and additional debt from state and local sources.
The Tappan (Cleveland, OH). Sustainable Community Associates is creating a mixed-use project, consisting of 95 units (59 of which are affordable) and a ground-floor bakery operated by a local entrepreneur. Financing comes from local investor and PNC Bank Opportunity Zone equity, as well as loan and tax incentives from the city of Cleveland. This particular development will provide housing options to workers who might not typically be eligible for housing assistance due to income levels, but who are burdened by housing costs.
“These encouraging developments illustrate some of the ways Opportunity Zones are attracting investment in affordable housing and community revitalization,” said Stockton Williams with NCSHA. “We expect more will follow as state housing finance agencies, Opportunity Zone investors, and local communities deepen their collaborations in more distressed areas.”
Added EIG’s John Lettieri: “These development profiles show that, even at this early stage in the market, Opportunity Zones are helping meet some of the most urgent community needs.”
Pictured: Ox Fibre Apartments, Frederick MD
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