R4 Capital Finances New Affordable Housing in Historic Mount Clemens, MI
— Specific Set-Aside for Chronically Homeless —
R4 Capital, a national affordable housing tax-credit syndicator, lender, and asset manager, arranged more than $8 million in gross tax credit equity financing to build a new 30-unit supportive housing apartment complex, Edison Crossing, situated within walking distance to downtown Mount Clemens, MI and 20 miles northeast of Detroit. R4’s equity investment in Edison Crossing is one of 18 expected property investments for R4 Housing Partners XVII LP (“Fund XVII”), a $262 million national multi-investor fund.
Edison Crossing is being developed by Columbus, Ohio-based Woda Cooper Companies, one of the nation’s top affordable housing developers. In the past 30 years, Woda has successfully financed more than 11,000 affordable rental units with housing tax credits across 15 states. Woda will also be serving as the general contractor and management agent of this property. The property will be restricted to residents earning up to 80% of the area median income utilizing income averaging and will include ten one-bedroom units and 20 two-bedroom units in one four-story elevator-serviced residential building. Eleven units will be set-aside as Permanent Supportive Housing units for chronically homeless individuals and households and benefit from project-based Section 8 vouchers provided by Michigan State Housing Development Authority (“MSHDA”). These units are expected to be pre-leased given the significant need for housing for the homeless. Macomb Homeless Coalition will provide on-site services to the PSH tenants and will coordinate with outside service agencies such as AMVETS Department of Michigan. They will also provide social services including employment related services including employment related services, mental health services, and financial management and budget counseling. Additionally, residents can be referred to service agencies for benefits counseling, employment training, literacy services, assistance with obtaining transportation, training in the use of public transportation, and any other resident needs.
In addition to the R4 tax credit equity, other financing partners include Comerica Bank, RiverHills Bank, Erie Capital CDFI Fund, LLC, and a supportive services contribution in the form of reinvested developer fee.
Comerica Bank (“Comerica”), one of the investors in Fund XVII, will provide an interest-only construction loan of more than $7 million to Edison Crossing.
“Investing in affordable housing initiatives positively impacts underserved communities,” said Beatrice Kelly, Senior Vice President of Community Development Lending, Comerica Bank. “This partnership, led by R4 Capital, represents the type of resources needed to help overcome many challenges people face. Our goal in supporting the Edison Crossing development is to remove barriers and improve our communities where we live and work.”
Notes R4 Capital Executive Vice President, Jason Gershwin, “We are proud to partner with our developer and investor partners to fund safe, quality affordable housing and even more so to have the supportive services available for residents who need and want it. It’s what community building is all about.”
Edison Crossing closed in December 2021, and construction is projected to be completed within 15 months.