consultants are sandburs

Wednesday, September 30, 2015

More of the same. Back home again in Indiana.

Posted online September 29, 2015, here - did they ever meet a leveraged deal they didn't like:

Housing developers and the Sisters of Providence are working to renovate and convert Owens Hall into affordable senior apartments, with developers seeking federal tax credits required to give the project a green light for construction.

The $9 million project would be developed by Flaherty & Collins Properties, an Indianapolis-based development firm. The firm would convert the former residence hall into 20 single-bedroom apartments and 20 two-bedroom apartments on the first two floors of the three-story brick building. The third floor of the building would be converted into market-share-priced apartments.

The Sisters of Providence of St. Mary- of-the-Woods Inc. and Vision Communities Inc. would own the proposed senior housing, according to a project notification filed with the Indiana Housing and Community Development Authority (IHCDA). Vision Communities’ president is Jerry Collins, co-owner of Flaherty & Collins, according to the Indiana Secretary of State’s office.

Duane Miller, vice president of community and asset management for Flaherty & Collins Properties, said Tuesday the company is seeking federal tax credits from the IHCDA. Those tax credits, at $640,000 over 10 years, would cover $6.4 million of the cost of the project, Miller said. The tax credits would be sold, like shares of stock, to fund the project.

Miller said Flaherty & Collins would then likely “find a gap source” of other state funds and historic tax credits for the remaining funds. “This is a project that can have an impact for the next 20 plus years. It is not just putting a Band-Aid on this historic building, it will preserve it,” Miller said.

IHCDA is empowered to act as the housing credit agency for the state to administer, operate and manage the allocation of the Internal Revenue Service Section 42 low-income housing tax credit (LIHTC) program, which is also known as the Rental Housing Tax Credits (RHTC).

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