Plans for a 221-unit affordable housing development in Houston have taken a major step forward.
Columbia Residential, Housing Alliance HTX, and Creekstone Cos. have secured financing for the property in the city’s Independence Heights neighborhood. Independence Heights was the first African-American city in the state before being annexed by Houston in 1930.
The family community will provide 131 project-based voucher, 81 low-income housing tax credit, and nine market-rate units.
“Securing this comprehensive financing package is a testament to the partnership with Housing Alliance HTX and their commitment to the Independence Heights community, as well as the confidence our lending and equity partners have in this community and our collaborative approach,” said Carmen Chubb, president of Columbia Residential. “With financial close behind us, we're ready to begin construction and bring this vision to life for the families who will call the Independence Heights neighborhood home.”
Financing for the $72 million mixed-income development includes:
- $35 million in cash-collateralized tax-exempt bonds issued by Victory Street Public Facility Corp.;
- $19.8 million in low-income housing tax credit equity from Wells Fargo; and
- An $18 million permanent loan with a Freddie Mac forward commitment through Wells Fargo.
The development received its 4% tax credit allocation from the Texas Department of Housing and Community Affairs last April. The development is structured as a joint venture between Housing Alliance HTX, Columbia Residential, and Creekstone Cos., with Housing Alliance HTX owning the land and ground-leasing it to the development partnership.
Officials said the development honors the longstanding commitment of Housing Alliance HTX and the legacy of community advocate Tanya DeBose, whose leadership helped shape a vision for equitable development in the neighborhood.