Mortgage banking firm Merchants Capital has secured funding for a new 32-unit workforce housing development in Lafayette, Indiana. This development is part of the state of Indiana’s Lieutenant Governor’s office as a Moving Forward 2.0 workforce tax credit housing development with an emphasis on breaking the barriers that result in generational poverty.
Using net-zero construction, the development – known as H38 East Apartments – leverages the Indiana Housing and Community Development Authority (IHCDA) program Moving Forward 2.0, an innovative program aimed at providing affordable, energy-efficient housing and transportation. In partnership with RealAmerica Development, LLC and Area IV Agency, this development will create housing that increases quality of life while decreasing the cost of living for low- to moderate-income individuals and families. The City of Lafayette and Lafayette Housing Authority provided HOME funds and tax abatement for H38 East Apartments.
“This innovative affordable housing project, H38 East Apartments, combines a healthy way of living with partnerships that bring together energy efficiency, education and skills development, nutrition and wellness, along with breaking transportation and child care barriers to allow for successful resource and employment development,” said Elva James, executive director of Area IV Agency on Aging and Community Action Programs.
All of the units will be priced affordably for low- to moderate-income individuals and families with 30 units priced at 60 percent of of the area median income (AMI) and two units priced at 50 percent AMI. Additionally, as part of the Moving Forward 2.0 Program, each household will have the opportunity to participate in an ongoing research study to determine the effectiveness of the program.
“This development is one of the first of its kind in Indiana, and we appreciate the opportunity to work alongside the RealAmerica and Area IV Agency teams,” said Michael R. Dury, president of Merchants Capital. “Using this unique funding structure, our team was able to provide the construction loan, tax credit bridge financing, and permanent financing which helped streamline the lending process from start to finish.”
Using an extremely efficient building design, the new development, located at 3791 Winston Drive, in Lafayette, will include solar power and geothermal features that use 35 percent of the energy a typical apartment would require. The property is located near Franciscan Health Lafayette East, the YMCA of Lafayette, the Lafayette campus of Ivy Tech, the Tippecanoe Mall and city bus line.
“We were honored to be chosen as part of the Moving Forward 2.0 program through IHCDA to help address generational poverty. It truly takes a team to create such an amazing program to help families thrive,” said Ronda Shrewsbury Weybright, president and owner of RealAmerica Development, LLC. “H38 East will do just that with its affordable, net-zero apartment homes and opportunities through supportive services. Seeing the support from the community and businesses coming together to help create such a positive program is remarkable.”
Area IV Agency’s onsite Life Skills Coach mentoring program will assist families in areas of life skills, education and career development. Additionally, the development will contract with Enterprise Rent-A-Car to provide a car-share program, Faith Ministries Car Repair and Loan Program, and local transportation providers. H38 East Apartments will also be home to a Community Building with unique amenities, including a classroom, STEM center, technology center, a teaching kitchen and more.
Additional community amenities include a playground, community gardens, and recreation and athletic area, along with a fitness and wellness center and a bike-share program.
About Merchants Capital
Merchants Capital is a multifamily, affordable, and healthcare lender offering a direct way to access fixed rate, long-term, non-recourse financing via its bank, Merchants Bank, all with a single point of contact. Merchants Capital strives to provide the best origination and service of its loan products with exceptional customer service, accuracy, creativity, speed and conformance to regulations.