Loan Type: Affordable For-Sale Housing Construction
Total Development Cost: $35,150,000
Times Leveraged: 32.2x
Loan at a Glance:
Partners, along with the Community Loan Fund of New Jersey, Leviticus 25:23 Alternative Fund, and Capital Impact Partners, increased an existing $11 million revolving construction loan to $12 million, including a $90,000 increase in Partners’ commitment, raising it from $1 million. The loan increase supports the completion of an affordable for-sale condominium development despite the cost increases the project faced in 2023.
Borrower Summary:
Lighthouse at Barnegat, LLC, controlled by Homes Now, Inc., is a not-for-profit community development corporation. Homes Now, Inc. constructs quality housing, including income-restricted housing for families, veterans, individuals with special needs, and women and children who are survivors of domestic violence. The organization is dedicated to creating sustainable and affordable housing solutions in the community.
Project Summary:
The Coastal Woods project will develop 148 age-restricted (55+) condominium units in Barnegat Township, NJ. Of these units, 15 will be income-restricted at up to 50% Area Median Income (AMI), 14 at up to 60% AMI, and the remaining 119 units will provide workforce housing. This development addresses the housing needs of middle- aged and senior adults in a census tract where 20% of homeowners are cost-burdened.
Loan Result:
The revolving construction loan will facilitate the creation of much-needed affordable housing options for middle- aged and senior adults. The development will alleviate the housing cost burden in the community and provide stable, affordable housing for various income levels. The project is expected to enhance the community’s economic stability and improve the quality of life for its residents.