August 26, 2019
Merchants Capital has secured $21.4 million in funding for the preservation of Carriage House of Evansville, a Section 8 housing development in Evansville, IN. The mortgage banking firm used a Fannie Mae Mortgage-Backed Security (MBS) as collateral for new Tax-Exempt Bonds (M.TEB), combined with 4% low income housing tax credits (LIHTC).
The funding reportedly was the first of its kind in the state of Indiana and sourced on behalf of the Gene B. Glick Company, a longtime Merchants Capital customer.
“Fannie Mae’s M.TEB program gives access to a lower cost of capital, which allows the development team to substantially renovate the community,” said Merchants Capital president Michael R. Dury.
The execution utilized publicly-issued tax exempt bonds and 4% tax credit equity, provided by PNC Bank, to fund approximately $11 million in repairs, renovations and upgrades to the community. Carriage House of Evansville was built in 1978.
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