Working in partnership with Groesbeck Housing Authority in Texas, the comprehensive rehabilitation of 80 units on its two properties, Liberty Square and Liberty Village are now complete. HSA was successful in obtaining an award of low income housing tax credits from TDHCA in late 2015.
The tax credits raised more than $6.5 million in investor equity which combined with a small first mortgage of $400,000 and a $500,000 Affordable Housing Program Grant from the Federal Home Loan Bank of Dallas, resulted in nearly $5.3 million in upgrades.
Two other noteworthy items to mention-GHA transitioned to the new RAD program resulting in a steady source of subsidy with an annual OCAF adjustment. Prior to the conversion, GHA, like all PHAs, could never count on an increase in operating subsidy or CFP, making it difficult for long term stability.
The second item is that HSA was able to qualify all units with the Texas State Historic Preservation Office as historic. As a result of this designation, Groesbeck Housing Authority will be receiving more than $1.6 million from the sale of those credits.
Jana Raymond, GHA’s executive director states, “Our agency was very concerned with our long term outlook. We had very little in reserves and an ever growing need for capital improvements. The partnership with HSA accomplished several important goals:
- Complete an aggressive rehabilitation of all our units
- Retain property management
- Secure long term increasing subsidy
- Place Groesbeck Housing Authority on a solid financial footing
Through our partnership with HSA we were able to accomplish all our goals and would recommend this path to every housing authority!”
Before photo of typical kitchen
After photo with new cabinets, appliances, and vinyl plank floors