Walker & Dunlop has closed a $3,389,300 loan in Vancouver, Washington for Arbor Ridge Assisted Living with the Vancouver Housing Authority, one of the most innovative public housing authorities in the country.
This is the first Rental Assistance Demonstration (RAD) transaction the Company and HUD’s Lean 232 program has completed for healthcare facilities.
The RAD program is HUD’s major effort to recapitalize public affordable housing.
The financing of Arbor Ridge was a groundbreaking application of the program to support an affordable assisted living community.
RAD focuses on conserving affordable rental housing, meeting the needs of residents and constructing lasting communities along with supporting future property improvements.
The Arbor Ridge Assisted Living transaction was structured with a 35-year term and a 35-year amortization schedule.
Additionally, the loan was written to a 78.5 percent loan-to-value and 1.45 debt service coverage ratio.
This deal was unique as the transaction refinanced an assisted living facility originally financed with low income housing tax credits and tax exempt bonds. In order to complete the refinance, the Vancouver Housing Authority transferred rental subsidies for thirty units under HUD’s RAD program.
Michael Vaughn, senior vice president, who led the Walker & Dunlop team commented, “We were pleased to assist Vancouver Housing Authority in replacing the financing on this property with a long term, fixed rate HUD mortgage. Combining the RAD subsidy with the tenants’ affordable rental payments is a ground-breaking approach to using HUD’s 232 Seniors Housing program to finance an affordable assisted living facility.”
Built in 2000, and located in close proximity to Vancouver’s Mass Transit System, Arbor Ridge Assisted Living provides affordable housing for seniors who cannot afford private facilities within the local market.
The target population of this property is seniors aged 75+ who need assistance with daily living tasks.
The facility offers apartment homes with different levels of personal services including housekeeping and linen services, scheduled transportation, 24-hour staffing with a registered nurse on call after hours and organized social events.