August 2010
WNC's Community Preservation PartnersMakes History
Community Preservation Partners (CPP), a subsidiary of WNC & Associates, Inc., made history by successfully closing New Mexico Multi-Family 2007 Partnership, a 229-unit rental apartment portfolio in New Mexico. The five-property rental assisted portfolio, which is located in five counties, secured the first ever USDA 515 Mortgage Transfer approval, the first ever RD 538 acquisition/rehab loan approval and the first allocation of American Recovery and Reinvestment Act (ARRA) funds in the state of New Mexico. The project was also financed with New Mexico HOME funds as well as tax credits purchased by a WNC sponsored fund.
“New Mexico Multi-Family 2007 Partnership exemplifies the expertise and resourcefulness of Commuity Preservation Partners,” commented Community Preservation Partners Director Terry Coyne. “No one else has ever successfully applied for an RD 515 mortgage transfer in New Mexico. It took perseverance—3 years. We overcame many, many obstacles, including a complete meltdown in the LIHTC equity market. Even the logistics were difficult, with five separate properties located in five counties.”
New Mexico Multi-Family Partnership received its Notice to Proceed in May of 2010 and expects to reach substantial completion by the end of 2010. Some of the improvements residents can expect include new roofs, exterior siding, full interior work and ADA accessibility.
New Mexico Multi-Family Partnership was one of many development projects which were stalled due to the shortage of financing options brought by the Great Recession. Another project developed by Community Preservation Partners, Kern Community Partners, closed in May. Kern is a scattered site preservation project in California which was ultimately financed with ARRA funds. "Both New Mexico and Kern had serious obstacles," remarked Mr. Coyne, "but due to our committment to affordable housing preservation, CPP was determined to see the projects through."
Community Preservation Partners is a subsidiary of WNC & Associates and was formed to create exit strategies for WNC investors and to preserve at-risk affordable housing through recapitalization and rehabilitation, using low-income housing tax credits and other financing. Since its inception in 2005, CPP has preserved the tax credit stream for nearly 1,050 affordable housing units, representing a development cost of $138 million.
