The Philadelphia Housing Authority (PHA) has sealed a $137.5 million financing package for its planned affordable housing development in West Philadelphia, Commercial Observer has learned.
The capital stack obtained by PHA for its Westpark Redevelopment housing project and the Westlake Apartments includes a $62.1 million construction loan provided by M&T Bank and a $45.2 million Freddie Mac unfunded forward commitment under the 9 percent Low-Income Housing Tax Credit (LIHTC) program. M&T also supplied a $30.2 million tax credit equity investment that includes both state LIHTC equity and federal energy credits.
SEE ALSO: Citi Refis Brooklyn Retail Asset With $29M CMBS Loan
“The need for affordable housing is real and urgent across our footprint, and M&T Bank is committed to being part of the solution,” Lopa Kolluri, head of affordable housing lending for M&T, said in a statement. “This partnership with the PHA exemplifies the progress that can be made when the private and public sectors work collaboratively to deliver win-win solutions for our communities.”
The PHA broke ground in early March on the first phase of the Westpark Redevelopment project, which will comprise 327 mixed-income units across three buildings north of Market Street, between Powelton Avenue and 46th Street. Nearly 140 units will be set aside for returning Westpark residents and 190 will be designated as affordable housing for households earning between 20 and 80 percent of the area median income.
The redevelopment of Westlake Apartments, which will eventually include 1,000 units comprising affordable and market-rate units, is a public-private partnership led by PHA along with developers LMXD and MSquared. PHA owns the land as part of a ground lease with the developers ground lessees in three of the planned buildings.
“Westpark is more than building apartments — it’s a community revitalization initiative,” Kelvin Jeremiah, president and CEO of PHA, said in a statement.
Andrew Coen can be reached at acoen@commercialobserver.com.