It’s no surprise that Affordable Housing Finance Magazine recently named Citi as the country’s top affordable housing lender in 2015. The bank’s main affordable housing and community development financing arm, Citi Community Capital (CCC) lent over $4.8 billion to the affordable rental housing industry last year. When combined with their work in education, healthcare and small business lending, CCC lent and invested nearly $7.8 billion across 160 U.S. cities.
Last year, CCC closed what is considered to be one of the most innovative and significant affordable housing transactions in Washington D.C.’s recent history, SOME’s Conway Center. This mixed-use community includes five separate condominium units: family housing, single adult housing, SOME’s administrative offices and training facilities, a healthcare services unit and a retail component. Conway Center will cost approximately $90.1 million.
Putting the “innovative” in innovative financing, CCC created a financing structure for the residential portion of the project. HUD provided an $8.3 million 221(d)4 taxable mortgage in first mortgage position and Citi purchased a short-term escrow backed tax-exempt bond in the same amount. To help generate approximately $20.1 million in LIHTC equity for the transaction, Citi also provided a $17.7 million tax-exempt back-to-back bridge loan to bridge Morgan Stanley’s investment in the LIHTC equity. Proceeds from the tax-exempt bonds and the bridge loan are being used to finance construction of the 182 residential apartments.
Additional investment in Conway Center includes New Market Tax Credits, which are being used to finance the administrative and training facilities, and the Healthy Futures Fund which is financing the property’s healthcare space. Conway Center is one of only five projects nationwide to receive funding through this new program. A partnership between LISC, Morgan Stanley and the Kresge Foundation, the Healthy Futures Fund uses the co-location model and invests in projects that promote primary care access and improve community health. HAND member and Conway Center developer SOME also used an equity investment for the retail space.
Citi is proud of its work with SOME, and other HAND members around the region. A 25th Anniversary and 2016 Annual Meeting & Housing Expo sponsor, Citi has long been a strong partner to those creating sustainable communities. The bank values the education, training and capacity building and network opportunities HAND provides its members and partners throughout the region.