Community Preservation Partners (CPP Housing), a national affordable housing developer committed to creativity, performance and purpose, today announced the closing of six rural communities in Central New Mexico. This marks the final installment in a total grouping of 654 units in 20 properties across 10 counties in the state that began in 2019. CPP serves as the fee developer for J.L. Gray Company, who will own and operate the properties.
Purchased for $7.3 million with a 4% tax credit equity investment of $8 million, the central portfolio comprises 218 units across four family and two senior properties in the cities of Las Vegas, Portales, Artesia, Belen and Ruidoso Downs. Affordability for residents earning less than 60% AMI will be extended for another 35 years.
“In New Mexico, it is extraordinarily difficult for affordable housing communities in rural areas to secure the financing they need to address maintenance and rehabilitation,” said Anand Kannan, president at CPP. “With our experience in rural development, CPP was able to arrange the smaller communities into portfolios that would meet both the mortgage finance authority and the rural development requirements to make a reinvestment possible.”
CPP is overseeing the $32,000 per unit renovation, which includes energy efficient improvements such as new windows, interior/exterior lighting and fully upgraded kitchens and appliances. Common rooms and offices will be upgraded and outdoor playgrounds and gathering areas added. Exterior improvements include new roofs, metal staircases and paint, and accessibility will be addressed throughout the properties. Construction is expected to complete in August 2022.
“CPP navigated the complex and challenging process of gaining approvals through the state and county offices to close on the largest 4% bond deal in the state of New Mexico,” said Bobby Griffith, CFO/principal of J.L. Gray Company. “Thanks to their expertise and tenacity over the past three years, we are able to preserve more than 650 homes for families and seniors in these hard-to-reach areas.”
Financing partners for the central portfolio include Bonneville, who is providing a 538 USDA guaranteed loan, bond underwriter Stifle and New Mexico MFA, bond issuer. USDA Rural Development is subordinating the existing 515 loans.
CPP continues its aggressive growth initiative to preserve affordable housing communities across the country. Communities recently closed in the U.S. have led the company to deepen the affordability of neighborhoods across Colorado, Utah, Montana, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Tennessee, Connecticut and Virginia, in addition to its long history of providing affordable housing solutions across the state of California.
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With more than 20 years of experience in affordable housing finance, Oakes will support the company’s plans for accelerated growth into markets nationwide