St. Mary Development Corporation received a HUD Section 202 award to create 55 units of elderly housing in Dayton, Ohio.  With the assistance of Ohio Capital Corporation for Housing, the project added 4% Low Income Housing Tax Credits which will result in the construction of 12 additional apartments for a total of 67 units.  The original 55 units are all one-bedroom and will be subject to both the Section 202 and tax credit restrictions, and will receive PRAC rental subsidy.  The remaining units will consist of 6 one-bedroom and 6 two-bedroom units that will be subject only to the tax credit restrictions and will not receive rental subsidy.

The unique structuring of Lyons Place through the HUD Mixed-Finance program layers 4% tax credits on top of the Section 202 funds and PRAC rental assistance.  Other permanent financing consists of HOME funds from the City of Dayton and NeighborWorks funds.  Tax Exempt Multifamily Housing Bonds were issued and will be held throughout the construction period to obtain the credits. 

A waiver was secured from HUD to allow the Section 202 funds in the amount of $4,874,800 to be used as collateral for the issuance of $4,600,000 in Multifamily Housing Revenue Bonds from OHFA to be issued by Montgomery County.  The Bonds will be issued on a draw down basis in an amount to total greater than 50% of aggregate basis plus land, and therefore will qualify the development for “automatic” 4% Tax Credits.  An individual investor agreed to purchase all of the bonds using a variable rate structure to fund construction and minimize cost.  Once construction is complete the bonds will be redeemed to the investor using the 202 funds. 

Other permanent financing consists of the Section 202 funds, HOME funds from the City of Dayton, NeighborWorks funds and the Tax Credit equity contribution.