We are pleased to announce the commencement of rehabilitation of the High Valley Estates Apartments, located in Klamath Falls, Oregon. This will be our 19th rehabilitation project in the state of Oregon, and our 32nd rehab project in the Pacific Northwest. Our acquisition and rehabilitation of this 36-unit family property will preserve another project with Section 8 project based HUD subsidy. The financing structure includes competitive 9% LIHTC, a construction loan and perm financing.
Beginning with an interim acquisition closing in February 2011, we closed on the investment and financing for this project in December 2012. Funds awarded for the project by Oregon Housing and Community Service (OHCS) include: Housing Development Grant Program (HDGP) and Low Income Weatherization Program (LIWX), Low Income Housing Tax Credits (LIHTC) and Oregon Affordable Housing Tax Credits (OAHTC). We have partnered with PNC Real Estate as Investor/Syndicator and JP Morgan Chase Bank as Construction and Perm Lender and purchaser of the OAHTC allocated by OHCS. Soft financing in the form of deferred developer fee will be provided by NWRECC to fill the financing gap. We now have loan and equity funding in place to commence the much needed rehabilitation at this property.
Having achieved closing for the financing, Notice to Proceed for the construction phase of this project was issued December 27, 2012 under the guidance of our rehab team: CSHQA, A Professional Association Architectural and Engineering, P.C. (Architect), CSDI Construction, Inc. (General Contractor), and NWRECC (Development Group and Operations). We expect approximately 11 months of rehabilitation with substantial completion scheduled by November 2013.
Rehabilitation of the property’s nine buildings include replacement of exterior structural conditions such as roofs, windows and sliding doors, siding repair and paint; repair to parking lot, sidewalks and fencing. Interior structural conditions scheduled for improvement include replacement of kitchen and bathroom cabinets and countertops, floor covering replacement, along with fixture and appliance replacement as needed. Accessibility standards will be improved in the property’s common areas and accessible units.