The Community Preservation Corporation (CPC), a leading nonprofit affordable housing and community revitalization finance company, recently announced the closing of two permanent loans under the Freddie Mac Small Balance Loan (SBL) Program. The loans, totaling $4.45 million were used to acquire two small multifamily buildings on Madison Street in Hoboken, New Jersey.
CPC delivered a $1.76 million permanent loan for the 6-unit walk-up at 301 Madison Street, and $2.69 million permanent loan for the 10-unit walk-up at 308 Madison Street. Both loans are structured as 10-year fixed-rate terms with three years of interest only payments and 30-year amortization, at a rate of 4.40 percent.
CPC is focused on its core mission of addressing the gap in the market for flexible lending products for small multifamily buildings—a segment of the housing stock that plays a critical role in providing housing for low- and moderate-income families. Freddie Mac’s SBL program is designed to address the need for cost-effective financing solutions for the acquisition and refinancing of small buildings and offers a streamlined process for permanent loans between $1 million and $7.5 million.
“Small buildings are the backbone of our communities, but there’s a gap in the market for products that speak to their unique needs. Freddie Mac’s SBL gives us a product that’s built for small buildings, and offers smart and flexible terms tailored to acquisition and refinancing. We’ve definitely seen the SBL gaining momentum in the marketplace and expect that to continue as more owners learn about it,” said Dick Conley, Senior Vice President & Director of Originations at CPC.
The SBL product can be used for the acquisition and refinancing of properties with five or more units that may have tax abatements and Section 8 vouchers, senior housing without services, Low-Income Housing Tax Credit properties with Land Use Regulatory Agreements, properties with regulatory agreements with government agencies, and properties with space for commercial use.
CPC is dedicated to bringing stable permanent lending capital to multifamily projects in underserved and growing communities throughout the Mid-Atlantic region. Whether providing Conventional Financing products or capital to address the needs of small buildings through the SBL program, the decades-long partnership between CPC and Freddie Mac offers borrowers reliable loan products tailored to multifamily developments of all sizes.
About the Community Preservation Corporation (CPC)
Established in 1974, CPC is a nonprofit affordable housing and community revitalization finance company that believes housing is central to transforming underserved neighborhoods into thriving and vibrant communities. To date the company has leveraged approximately $9.7 billion in private and public investment to finance more than 170,660 units of housing. CPC’s work with its partners has helped revitalize countless neighborhoods and provided quality housing for families, senior citizens, and individuals with disabilities. Visit CPC at communityp.com, and on Facebook, Twitter and LinkedIn.