Griswold Apartments Funding

**hybridy** · July-25-16, 03:55 PM

View inside [[and outside) The Griswold apartment project under construction in downtown Detroit

Di Rita said he expects rents for the 80 apartments — a mix of one-, two- and three-bedroom units — to be around $2.50 per square foot. Units are expected to range from 750 to 1,600 square feet.
Financing comes from Pillar Capital Finance LLC through the U.S. Department of Housing and Urban Development's Section 221[[d)[[4) program, which helps finance construction or rehabilitation of multifamily rental housing for moderate-income families, the elderly and people with disabilities; Invest Detroit Inc.; the Michigan Strategic Fund; and private investors.
Pillar Capital Finance — which is providing a $15.49 million senior-position loan backed by the 221[[d)[[4) program — is based in New York City and has a Bloomfield Hills office. The MSF is providing $4.8 million in equity, while Invest Detroit is providing a $1.65 million brownfield tax credit bridge loan.

"Section 221[[d)[[4) program, which helps finance construction or rehabilitation of multifamily rental housing for moderate-income families, the elderly and people with disabilities"

"to be around $2.50 per square foot. Units are expected to range from 750 to 1,600 square feet"

does anyone else find it curious that HUD is funding this? so $1850 for 750 SF. if that's 'moderate income' i am in deep poverty.

**Richard** · August-03-16, 10:23 PM

By allowing 20% of the units for elderly and those with disabilities HUD kicks in.

Usualy it is 20% of the units reserved for below medium income for the grants or section 8 for X amount of years,it was six then you sell the building and the new owner can eliminate the requirements and add 20% market rate.

I am thinking that program was for rural in the past,they must have changed it.
I also wonder why it was changed from medium to moderate when it is supposed to be based on the adverage wage of the city as a whole,or the poverty line of 25,000.

Also how they are now baseing the terms of medium and moderate or defining.

It is interesting how this got through and IMHO not the best use for what the program was intended for,Usualy it is to help those at the poverty level move up,but maybe to intice more investment they have sweetened the pie,2.50 a sqft is pricy.
But it is an election year so it is the best time to buy points.