$100K a Unit For a Family Project-Based Section 8 (HAP Contract) Sale to a LIHTC DeveloperKyle Shoemaker
On October 26th, AHIB completed a deal that produced a price of over $100K a unit for a family project-based Section 8 (HAP Contract) sale to a LIHTC developer. AHIB was introduced to the potential seller in late 2015 by an outside party who knew the needed price would be very difficult to support. The owner had highly leveraged the property several years prior with an FHA-Insured mortgage, an selling the property for much more than the debt appeared impossible. Knowing that AHIB knew the market better than anyone though, the seller asked if any buyer could potentially meet the price to make a deal.
Based on several recent marketing efforts, AHIB was uniquely qualified to identify the most aggressive and qualified Low Income Housing Tax Credit (LIHTC) buyers in the market. We produced an offer at the seller’s desired price from a group that was able to pass-through deposits to the seller throughout the process of issuing bonds through IHDA and closing with a new FHA-insured loan through HUD. While a lengthy process, the buyer performed exactly as-promised.