Refi to Benefit Eden Affordable Housing Properties

Eden Housing, a nonprofit that has developed or acquired more than 10,600 homes in communities throughout California, received $18.2 million in total refinancing. The proceeds will be used to rehabilitate Eden Housing’s two affordable housing communities Emerson Arms and Arroyo Vista. Merchants Capital provided the funding.

Constructed in 1995, Arroyo Vista is a 156-unit affordable apartment community located in Mission Viejo. Emerson Arms is a 32-unit affordable apartment community which is covered by a long-term Option 5 HUD project-based Section 8 contract. Emerson is in Oakland-Berkeley.

“As we continue to face unprecedented times – where our portfolios are aging but we lack the variety of feasible financing solutions to address the physical needs – it is critical to have organizations like Merchants Capital that aim to step in and help affordable housing operators explore various solutions to meet our needs,” said Darnell Williams, senior director of asset management, Eden Housing. “Like many affordable housing providers, we are feeling the implications of bond financing constraints. These two properties – although very different financial profiles – were each in need of a seven-figure capital infusion to buy us time before the next tax credit syndication is available.”