Loan Type: Enterprise Loan
Total Development Cost: N/A
Times Leveraged: N/A
Loan at a Glance:
This loan was PCG Capital’s seventh loan in partnership with Housing Partnership Network (HPN). Our total outstanding in partnership with HPN is 3.3MM or 7.3% of the portfolio. Through a 2021 CDFI Fund FA grant, PCG Capital created a new goal of increasing lending in Florida, Georgia, Alabama, and the Carolinas.
Project Summary:
The loan will fund the creation of more than 640 affordable housing units by providing medium-term capital to finance New Urban Development (NUD)’s pipeline of housing projects. NUD focuses on housing development in Miami, particularly in the economically distressed neighborhood of Liberty City. The neighborhood suffers from high unemployment and low incomes. This housing shortage is due to years of under-investment and compounded by gentrification. The loan will ultimately leverage more than $200MM of public and private investment.
Borrower Summary:
NUD is a subsidiary of the Urban League of Greater Miami (ULGM), a Black-led organization that serves BIPOC clients. NUD has developed a robust pipeline over the past three years, including 830 new affordable housing units and 13,600 SF of community space. The loan will be a vital catalyst for more than $270MM of new investment in Liberty City. It will enhance NUD’s capacity for future development with nearly $17MM of cash development fees.
Loan Result:
Affordable housing will become available to low-income neighborhoods in the greater Miami metropolitan area. These new housing units will serve the population in Liberty City with an average median income equal to 70% of Miami AMI.