Katie Tenney, a tax credit finance and syndication partner at Nixon Peabody, recently acted as investor counsel for a conversion of public housing to privately owned affordable housing under the U.S. Department of Housing and Urban Development (HUD) Rental Assistance Demonstration (RAD) program. Nixon Peabody represented the equity investor, Hunt Capital Partners, in the transaction. According to the firm, it is one of the largest such deals of its kind to date.
Under the terms of the deal, 1,600 units of affordable housing in El Paso, Texas, will be renovated and maintained as affordable housing using a combination of tax credits, bond financing and HUD operating subsidies. The first phase represents about 30 percent of the housing units of the Housing Authority of the City of El Paso and a public/private investment of more than $250 million.
“The RAD program allows housing authorities to employ private money to help address the serious deferred maintenance issues facing our public housing stock,” said Tenney in a statement. “This deal should serve as an example for how housing authorities around the country can combine multiple sites in a single RAD transaction to get the most bang for their buck.”
Along with Tenney, tax credit finance and syndication associate Matthew Mullen and tax credit finance and syndication partner Forrest Milder participated in the deal.
Based in New York, Tenney represents equity providers in various community development projects, focusing in particular on the use of the federal low-income housing tax credit.