Media Contacts:
LINC Housing: Holly Ferris, Ferris Communications, (562) 746-8461 mobile/text, holly@ferriscomm.com
Fannie Mae: Andrew Wilson, (202) 752-5168
HUD: Gene Gibson, (415) 706-4446
Enterprise Community Partners: Jon Searles, (202) 649-3916, jsearles@enterprisecommunity.org
FOR IMMEDIATE RELEASE
$19.4 Million Loan Includes Support for Development of Innovative Model for Green Retrofits
SANTA ANA, Calif., June 27, 2012 — Preserving affordable housing and encouraging energy-saving upgrades is the theme of a celebration today recognizing the recent closing of a first-of-its-kind Fannie Mae Green Refinance Plus loan to LINC Housing for its 274-unit City Gardens Apartments in Santa Ana, Calif. Residents joined officials from the U.S. Department of Housing and Urban Development (HUD), Fannie Mae, Bellwether Enterprise Real Estate Capital LLC (Bellwether Enterprise) and LINC Housing to celebrate the $19.4 million loan, which enabled LINC to retire tax-exempt bonds, buy out the Low Income Housing Tax Credit equity partner, and finance property improvements.
The Green Refinance Plus loan program is a partnership between Fannie Mae and HUD. Carol Galante, Acting Federal Housing Administration (FHA) Commissioner and Assistant Secretary for Housing at HUD, was on hand to help celebrate. “The Green Refinance Plus program is a significant step forward by HUD and its partners to make affordable housing energy efficient and sustainable,” she said. “This program is another fine example of the collaborative efforts promoted by the Obama Administration to make America more energy efficient and preserve affordable housing.”
Jeffery Hayward, senior vice president and head of Multifamily Mortgage Business for Fannie Mae, echoed Galante’s sentiment. “Green Refinance Plus is a great example of Fannie Mae ‘s commitment to preserve affordable rental housing, ” he said. “We developed Green Refinance Plus hand-in-hand with HUD and our lending partner Bellwether Enterprise provided the financing to LINC Housing. The result is a better quality, more energy efficient property for the families who live there, and a higher quality asset for Fannie Mae, HUD, Bellwether Enterprise, and the owner of the property, LINC Housing. Green Refinance Plus is a ‘win-win’ structure for all parties involved.”
Bellwether Enterprise originated, underwrote and closed the loan, and will provide loan servicing. “Bellwether Enterprise is pleased to serve as the first lender under the Green Refinance Plus program and congratulates LINC Housing and all of the partners involved for making energy improvements and other needed renovations that reduce operating costs, improve air quality for residents and protect the environment at the same time,” said Lamar Seats, CEO of Bellwether Enterprise. “Through innovative financial products as part of our vision to green all affordable housing by 2020, Bellwether Enterprise is bringing the health, economic and environmental benefits of green building and preservation to communities nationwide.”
Nearly a third of the improvements at City Gardens are “green”. Retrofit efforts will create jobs while replacing old, inefficient gas-fired furnaces with Energy Star-rated furnaces, and installing low-flow plumbing fixtures, energy efficient lighting, and a passive solar domestic hot water system. In addition, the property will be landscaped to provide relief from the “heat island” effect and irrigated with reused grey water, lowering both energy and water consumption on the property and reducing operating expenses. Fran Hereth of Kango Development is helping LINC in the program design and implementation of this landmark work at City Gardens.
“This program is closely aligned with LINC’s mission to create and preserve sustainable, affordable housing for low-income Californians,” said Hunter L. Johnson, president and CEO of LINC Housing. “We’re hoping this is the first of many Green Refinance Plus loans we’ll be able to use to bring green features to more of our apartment communities throughout the state.”
Southern California Edison and the Southern California Gas Company are also integral partners on the retrofit portion of the project. They’ll be testing several new technologies and processes in an effort to create an innovative model that can be replicated at other multifamily housing in California and beyond.
