We are pleased to announce the closing on June 17, 2009 of a $4,651,800 loan for Annunciation Inn, a 106 unit elderly housing project in New Orleans, LA. The loan was insured under the Section 221(d)(4) substantial rehabilitation program and was structured on an “insurance upon completion” basis. The commitment for mortgage insurance, issued by HUD in December 2007, was part of a complex financing that included low-income housing tax credits and short-term bank debt that the borrower used to acquire the project in 2007. After the rehabilitation was completed and the contractor and borrower certified their costs to HUD earlier this year, we closed with HUD in June; the insured loan proceeds were used to retire the acquisition financing.

Annunciation Inn is sponsored by Providence Community Housing, a not-for-profit organization established in 2006 for the purpose of rebuilding housing in New Orleans in the wake of Hurricane Katrina. For additional information about our ongoing work with Providence and our initial efforts on the Annunciation Inn financing, please see our posts Four Years After Katrina: The Restoration and Renewal Continues in our News section and Sims Helps New Orleans Seniors Return Home With Tax Credits and HUD Financing in our Case Studies section.