NAHT and DHIC Close on $10.5M of Equity Financing for the New Construction of The Village at Washington Terrace
Columbus, OH. Friday, January 19, 2018. Community leaders, social service providers and policymakers all agree that stable housing plays a key role in the success and overall quality of life for individuals. With a focus on leveraging housing as a platform to ensure access to social services for low-income families, National Affordable Housing Trust (NAHT) is proud to announce the closing of Village at Washington Terrace. NAHT closed on the property in partnership with Goldman Sachs Bank and DHIC, a nonprofit developer based in Raleigh, North Carolina.
Equity financing for the new construction of Village at Washington Terrace is provided by the NAHT Strong Families Fund (SFF). SFF uses a Pay for Success model to integrate Resident Service Coordination (RSC) into the development plan. This model requires the collection and analysis of impact outcomes from the residents of Village at Washington Terrace.
The Strong Families Fund is a ten-year initiative of the Kresge Foundation, Robert Wood Johnson Foundation (RWJF), Corporation for Supportive Housing (CSH), Stewards of Affordable Housing for the Future (SAHF), The Community Development Trust (CDT), Goldman Sachs, and NAHT. The purpose of SFF is to stimulate and support innovate strategies to design, deliver, and measure the impact of Resident Service Coordination for families. The long term goal is to identify new and sustainable funding models and strategic partnerships to support the delivery of effective RSC that expands service opportunities available for residents.
Prior to the launch of the Strong Families Fund, SAHF began the Outcomes Initiative to demonstrate the impact on residents when integrating services into stable affordable housing. By providing access to supportive services, SAHF members have proven that service-enriched housing offers opportunities to residents that increase the success of children in school and improves their overall health and financial welfare.
“NAHT is proud to partner with Goldman Sachs, Kresge Foundation, Robert Wood Johnson Foundation, and key community development partners such as DHIC in our Strong Families Fund, leveraging foundation resources and Tax Credit syndication in a unique Pay for Success model” stated Paul Cummings, NAHT VP, Acquisitions. He continued, “The Strong Families Fund provides for the long term funding of a Resident Services Coordinator, as well as a commitment to measure the services impact that will benefit residents of the Village at Washington Terrace, while providing a blueprint for future service-enhanced community development."
“The Strong Families Fund recognizes that an affordable home is the foundation to provide a family with the economic security to break the cycle of poverty," said Margaret Anadu, Goldman Sachs Managing Director and head of the Urban Investment Group. "The quality rental housing being financed also provides service coordination for residents with the goal of improving healthcare access, financial literacy and educational attainment, further demonstrating the important role affordable housing can play in improving the overall well-being of low-income families.”
Village at Washington Terrace is a 162 one-, two-, and three-bedroom unit apartment community. The completed development will include nine building types across 16 buildings, a community building and management office, gathering room, kitchen, fitness center, and a child care center. Village at Washington Terrace is being developed by DHIC, located in Raleigh, North Carolina. For the past 40 years, DHIC has served in a leadership role to foster housing opportunities in the Triangle region (Raleigh, Durham, and Chapel Hill, North Carolina). As one of the country’s most experienced non-profit housing development organizations, DHIC strengthens communities by offering families and seniors with limited income the opportunity for high-quality rental housing and home ownership.
NAHT has provided low income housing tax credit syndication and development advisory services for thirty years with a focus on finding creative ways to provide sources of capital for SAHF Member and other Non Profit Developer projects and initiatives. The Strong Families Fund is an example of this effort to innovate, and NAHT is proud to bring this project to the market.
For media inquiries, contact: Heather Holland, [email protected], 614-917-2864