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Red Capital Finances Second Phase of HOPE VI Community
Published: October 31, 2007
By Kelly Sheehan, Online News Editor
Hartford, Conn.—Red Capital Markets Inc., the investment banking entity of Red Capital Group, and Red Capital Community Development Co. LLC recently provided Low Income Housing Tax Credits (LIHTC), equity bridge and construction financing for the development of the Dutch Point II apartments in Hartford, Conn.
The property will consist of 54 affordable units set aside for families earning 25 to 60 percent of the Area Median Income (AMI). Forty-seven of the units will also be designated as U.S. Department of Housing and Urban Development (HUD) public housing.
Six buildings will be constructed on the 3.61-acre site. Common amenities will include a clubhouse, community room and playground. In addition, supportive services will be offered to residents. These will include case management, educational development, family support programs, leadership development and adult education classes.
The project is being sponsored by Hartford’s Housing Authority and The Community Builders (TCB), which specializes in HOPE VI revitalization projects. Dutch Point Management LLC will serve as the property manager.
Red Capital Markets syndicated the property’s allocation of $12.2 million in LIHTC. Red Capital Community Development Co. will provide a $5.8-million equity bridge loan and a $1.5-million construction loan. Hartford’s Housing Authority will provide a $1.4-million loan sourced from a $20-million HOPE VI grant made by HUD. Dutch Point will also receive $800,000 in HOME funds from the city, and $1 million in HOME funds from the state of Connecticut. Additionally, a $600,000 loan will be provided by Capital City Economic Development Authority, and TCB Connecticut will provide a $500,000 loan.
