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Greystone Affiliate, America First Multifamily Investors, L.P., Provides $42 Million in Construction Financing for Supportive and Homeless Housing in Los Angeles

Greystone Affiliate, America First Multifamily Investors, L.P., Provides $42 Million in Construction Financing for Supportive and Homeless Housing in Los Angeles
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Tax-exempt and tax-deductible bonds finance a significant portion of construction costs for permanent supportive and transitional housing units

NEW YORK, Jan 10, 2022 (GLOBE NEWSWIRE) — Greystone’s subsidiary, America First Multifamily Investors, LP (NASDAQ: ATAX) (“ATAX”), announced today that it has purchased $42 million in tax-free mortgage proceeds. and tax bonds for the acquisition, adaptive reuse, and permanent financing of the 79-unit seniors’ future and supportive housing community in Los Angeles. Frank Bravo, managing director of ATAX, established the transaction.

The scope of work at 5500 Hollywood Boulevard will consist of converting the existing vacant commercial building into a multi-family project for the Low Income Housing Tax Credit. The project consists of a five-storey residential building after adding a mezzanine floor. Reuse after adjustment, the property will be restricted to seniors earning 30%, 50% and 80% of the median income in the area. It is expected that 39 units will benefit from vouchers based on the project, principally leased by The People Concern, made up of individuals who are homeless or at risk of homelessness.

Upon settlement, and no later than 30 months from initial closing, the tax-exempt bonds will be partially redeemed and ATAX will provide $18.1 million in perpetual financing in the form of a 15-year, 40-year amortized facility.

The current property, known as the “West Hollywood Building,” was originally built in 1928 by Louis B. The building is of Art Deco architecture and served as the first site for the Motion Picture Association of America, Central Casting. The building has been recognized as of historical interest and is on the List of Historic Cultural Landmarks maintained by the City of Los Angeles Department of City Planning.

As an adaptive residential property, the building will be owned by Residency at the Mayer, LP, a California limited partnership. The Borrower’s general managing partner is ABS Mayer, LLC, a wholly owned subsidiary of ABS Properties, Inc, and the Borrower’s General Management Partner is Kingdom Mayer, LLC, a wholly owned subsidiary of Kingdom Development, Inc. , a non-profit corporation in California. The Limited Partner is Columbia Pacific Advisors.

“We continue to pioneer innovative strategies to help public-private partnerships find solutions for housing construction and maintenance in the United States, and we thank our partners for their dedication to this project, which will contribute 79 new homes to the affordable housing stock in Los Angeles,” Bravo said.

“This transaction is a prime example of the power that tax-exempt bond financing can have in the fight against homelessness, and we’re thrilled to contribute to our path to fighting this crisis,” ATAX CEO Ken Rogozinski added.

Greystone, the number one HUD-secured business loan provider by volume, is also a top 10 provider of affordable housing loans from Fannie Mae and Freddie Mac. In 2019, a Greystone subsidiary acquired the parent company of America First Multifamily Investors’ general partner, LP, which manages more than $1 billion in assets consisting primarily of mortgage-return bonds intended for affordable multifamily home construction and durable financing.

About America First Multifamily Investors, LP (ATAX)
America First Multifamily Investors, LP was incorporated on April 2, 1998 under the Delaware Revised Consolidated Limited Partnership Act for the primary purpose of acquiring and dealing with a portfolio of mortgage yield securities issued for the provision of construction and/or/or sale and transacting. Or permanent funding for affordable student housing, commercial properties, and multifamily homes. ATAX pursues a business strategy of acquiring additional bonds for mortgage income and other leveraged investments. ATAX anticipates and believes that the interest earned on these mortgage yield securities is excluded from gross income for federal income tax purposes. ATAX pursues its investment growth strategy by investing in additional mortgage income securities and other investments as permitted by the amended and reformulated Limited Partnership Agreement of September 15, 2015, utilizing attractive financing structures available in the stock market, and entering into Interest rate risk management. America First Multifamily Investors, LP press releases are available at www.ataxfund.com.

About Greystone
Greystone is a leading national commercial real estate finance company and has a solid reputation as a leader in multifamily and healthcare finance, having ranked first in FHA, Fannie Mae and Freddie Mac in these sectors. Loans are provided through Greystone Serviced Company LLC, Greystone Funding Company LLC, and/or other Greystone affiliates. For more information, visit www.greystone.com.

About the characteristics of ABS
ABS Properties (ABS) is a boutique development company established for the purpose of acquiring, developing and owning mixed-income/mixed-use projects, specifically in the drilling sector in Los Angeles and the surrounding areas. ABS focuses its development activities on community-oriented affordable housing projects which include the revitalization of historical structures and the activation of public and private spaces. Since its founding in 2001, the company has worked closely with city, state, and federal agencies and has successfully delivered more than 800 affordable units in the Los Angeles submarket of Southern California. Notable projects include Imani Fe Apartments, a large family housing project comprising of 92 affordable housing units, delivered in 2010 and awarded as Structural Developer of the Year. ABS is currently under the direction of Samir Srivastava, who is developing affordable communities in the Burbank, Hollywood, and downtown Los Angeles areas. The joint ventures comprise approximately 1,700 mixed-income/affordable housing units centered on mixed uses including grocery stores and small pedestrian-friendly services such as laundry, cafes, fitness centers and plazas.

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The information in this press release contains “forward-looking statements,” which are based on current expectations, predictions and assumptions that involve risks and uncertainties that could cause actual results and outcomes to differ materially. These risks and uncertainties include, but are not limited to, risks to the existing maturities of our financing arrangements and our ability to roll over or refinance these terms, fluctuations in short-term interest rates, collateral valuations, mortgage securities investment valuations, and the general economy and credit market conditions. For a list and additional description of these risks, see the reports and other filings ATAX filed with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2020 and its quarterly report on Form 10-Q for the period ended 30 September 2021. ATAX disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Media contact:
Karen Marotta
gray stone
212-896-9149
Karen.Marotta@greyco.com

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