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Lument Closes $28M Loan for Ohio Multifamily Property
Lument closed a $28 million U.S. Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA) Section 221(d)(4) loan to assist TFG Housing Resources and Raise Up with the substantial rehabilitation of Western Horizon, a 353-unit affordable housing community in Lorain, Ohio.
The transaction utilized a component of the Rental Assistance Demonstration (RAD) program. Lument’s Joey Hague, a managing director based in Columbus, led the transaction. The units were converted through the RAD program in conjunction with 4% low-income housing tax credits through the Ohio Housing Finance Agency. In addition to the FHA mortgage, Lument Securities served as the underwriter for $9.2 million in tax-exempt bonds.
“The FHA 221(d)(4) program was an ideal fit as it installs fully amortizing 40-year construction to permanent financing at a favorable interest rate, positioning the community for future success,” said Hague. Originally built in the 1950s as three separate communities, Leavitt Homes, Westview Terrace, and Westgate Apartments have historically operated as public housing.
