Wednesday, June 23, 2010

$1.76M HOME loan to aid St. Paul Village rehab

Low income seniors will soon have more spacious living options thanks to a $1.76 million federal HOME loan approved by Cincinnati City Council.

The 45-year, 2 percent interest loan, through the U.S. Department of Housing and Urban Development's (HUD) HOME Investment Partnerships Program and the City's Rental Rehabilitation Program, will allow St. Paul Village I Limited Partnership (Episcopal Retirement Homes) to rehabilitate its buildings at 5515 Madison Road in Madisonville.

The $12.6 million project will reduce the number of units from 124 to 103, but will convert many of the complex's efficiency units into more marketable one-bedroom units. Seven efficiency units will remain.

Rents will range from between $434 and $618 per month.

Under terms of the loan agreement, Cincinnati will receive an annual debt service payment of 30 percent of operating cash flow starting in the loan's second year.

In addition to the HOME funds, sources of funding for the project include first and second mortgages held by HUD, a Tax Credit Exchange Loan, a Tax Credit Assistance Program (TCAP) Loan, Low Income Housing Tax Credits, and partner and developer contributions.

The Madisonville Community Council supports the project.