NEW ORLEANS, Feb. 1, 2024 /PRNewswire/ — Lincoln Avenue Communities (LAC), a mission-driven acquirer and developer of affordable housing, today announced that it has acquired Tivoli Place and will carry out an extensive rehabilitation of the property. This a milestone transaction for the company, as it is LAC’s first rehabilitation using Historic Tax Credits and its first within the state of Louisiana. As a part of the renovation, LAC will invest more than $35 million to upgrade the century-old building, preserving its historic structure and ensuring it remains designated senior affordable housing.
Built in 1917, Tivoli Place sits on historic St. Charles Avenue within the Warehouse District. The neighborhood is home to landmarks including the former city hall, the world’s oldest continually operating streetcar line, the Mississippi River and Caesar’s Superdome.
“LAC is honored to grow our affordable housing portfolio through the acquisition of such a historically significant property,” said LAC CEO Jeremy Bronfman. “As rent pressure remains high in New Orleans, this historic rehabilitation will preserve access to affordable senior housing while enhancing the Tivoli Place community and providing important new services for residents.”
Tivoli Place provides 163 units of affordable housing for seniors earning no more than 20-60% of the Area Media Income. Further, the property’s 8 total 20% AMI units are set aside for Special Needs Households. The development is further covered by a federally subsidized Housing Assistance Payment contract that has been renewed for an additional 20 years in conjunction with the rehabilitation, further preserving the project’s affordability. This transaction will protect the much-needed affordable apartments in the Warehouse District, which is part of the City’s Inclusionary Housing Zone designated as a high-cost-of-living area.
LAC will install new central heating and cooling, replace old plumbing, upgrade finishes, and raise ceiling heights in each unit. New community amenities will include a media room, library, fitness center, dining room, bike storage, security upgrades, and health care exam room. LAC will also improve the property’s sustainability and resilience by installing new fixtures to reduce the property’s water and power consumption as well as rooftop solar panels and structured solar in the parking lots to offset electricity usage.
Residents will have on-site access to preventative health care screenings, exercise classes, mentoring programs, transportation, disability counseling, and other social programs.
“LAC is proud to close on our first Historic Tax Credit rehabilitation and to help preserve and enhance this historic property,” said David Garcia, LAC Vice President & Project Partner. “Our renovations will ensure that Tivoli Place provides high-quality, attainable, and resilient homes for generations of New Orleans residents.”
The deal was financed through Low Income Housing Tax Credit equity from Boston Financial syndicating to Capital One; federal and state Historic Tax Credits, in partnership with JP Morgan Chase and Stonehenge, respectively; tax-exempt bonds by the Louisiana Housing Corporation; a HUD 221(d)4 loan serviced by Capital One; an equity bridge loan from Huntington National Bank; a PILOT agreement with Finance New Orleans; and solar tax credit equity being syndicated by Boston Financial.
“Boston Financial is proud to have partnered with Lincoln Avenue Communities, Capital One, Huntington Bank, Finance New Orleans, and the Louisiana Housing Corporation on Tivoli Place,” said Roy Faerber, Senior Managing Director at Boston Financial. “We are excited to see the impact this project will make to the community, helping to preserve 163 affordable homes as well as rehabilitate a remarkable historic building in the heart of the New Orleans’ Lafayette Square Historic District. Boston Financial’s vision is to create a future where everyone has a home, one investment at a time, and Tivoli Place is a shining example of that belief in action.”
“Affordable housing preservation and creation is greatly needed in New Orleans and across Louisiana, and the rehabilitation of Tivoli Place underscores Capital One’s commitment to helping solve the affordable housing gap at scale,” said Dan Miller, Capital Officer for Community Finance at Capital One. “We are proud to work alongside Lincoln Avenue Communities as the low income housing tax credit equity investor and originator of the HUD 221(d)(4) mortgage that will finance unit upgrades and add resident amenities, including digital and healthcare access.”
About LAC: Lincoln Avenue Communities (LAC) is one of the nation’s fastest-growing developers, investors, and operators of affordable and workforce housing, providing high-quality, sustainable homes for lower- and moderate-income individuals, seniors, and families nationwide. A subsidiary of Lincoln Avenue Capital, LAC is a mission-driven organization with a presence in 26 states and a portfolio of 135 properties comprising 23,000+ units.
SOURCE Lincoln Avenue Communities
Originally published at https://www.prnewswire.com/news-releases/lincoln-avenue-communities-acquires-historic-affordable-housing-property-for-seniors-in-downtown-new-orleans-302051138.html
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