Mission College Revitalization
Grandy Village Revitalization
Norfolk, VA

Development:
260 Rental Apartments – Mission College
275 Rental Apartments and Duplex Units – Grandy Village
Future Development Activities On-Site Grandy Village and Elsewhere

On January 1, 2006 TCG and the Norfolk Redevelopment and Housing Authority entered into an Indefinite Quantity Contract for the provision of financial advisory services by TCG to NRHA in conjunction with the revitalization of NRHA’s portfolio of public housing properties. The initial activities under this contract were to arrange debt and equity financing for the revitalization of NRHA’s Mission College and Grandy Village properties.

Mission College is a 260 unit expired use tax credit apartment complex adjacent to NRHA’s successful Broad Creek HOPE VI redevelopment. Originally developed by the Bank of America CDC and NRHA, BofA’s interest in the property was bought out by NRHA at the end of the tax credit compliance period. NRHA developed a rehabilitation scope of work and TCG assisted in obtaining 9% tax credits from the Virginia Housing Development Authority and debt and equity financing from the private sector. The financing package was complicated by the presence of an existing FHA 221(d)4 mortgage on the property that could not be prepaid until 2009. Since FHA does not allow subordinated debt, the construction loan is collateralized by a letter of credit from NRHA and the interest rate is fixed through a derivative swap.

Grandy Village is a 341 unit public housing complex on the banks of the James River in Norfolk. 253 of these units have been upgraded by NRHA using Public Housing Capital Funds provided by HUD. In addition, NRHA has newly constructed 22 units and the total 275 units will be owned by a limited partnership with an NRHA entity as general partner. NRHA will issue a tax exempt revenue bond which brings with it 4% low income housing tax credits. The bond will be purchased in a private placement and the equity generated will allow NRHA to further upgrade the units and add a 10,000 square foot community building. Future development on the Grandy site will incorporate a senior building, a new construction family rental, and a market rate homeownership component. Wetlands restoration by NRHA along the banks of the river will open up magnificent water views to all of the residents of the property.

Development Team:
Norfolk Redevelopment and Housing Authority – Developer and Owner
TCG Development Services – Financial Advisor

Financing:
Virginia Housing Development Authority
Virginia Small Business Financing Authority
NRHA
Union Bank of California
M&T Bank
Hudson Housing Capital
SunAmerica Affordable Housing Partners
US Department of Housing & Urban Development

Architect/Engineer:
Kroskin Design Associates

Contractor:
T.A. Sheets