RED Mortgage Capital (RED) announced that they have provided a $950,000 U.S. Department of Agriculture (USDA)-backed loan for the recently completed New York State Homes and Community Renewal’s (HCR) Walnut Hills Apartments project in Penn Yan, NY.
The Walnut Hills project was a $10.7 million rehabilitation of 59 existing apartments and new construction of eight additional apartments. The developer is ODS Management.
Financing included $8.5 million in subsidy from New York State Homes and Community Renewal. In addition to mortgage insurance, USDA provided 40 project-based Section 521 rental subsidies. This is the first time a Section 538 loan is being used for a combined rehab/new construction project.
Walnut Hills was originally constructed in 1972 by USDA. The renovation includes new roofs, windows and siding for all buildings, as well as new kitchens, baths and energy efficiency upgrades. The rental office was expanded to include a community room, patio and playground. All apartments are affordable to households earning at or below 60 percent of the area median income.