Seeing a need for additional affordable housing in the communities where UMB associates live and work, the bank launched a new affordable housing lending program in 2018, made possible through the Low-Income Housing Tax Credit (LIHTC) program. LIHTC is a federal government program created by the Tax Reform Act of 1986 that offers a 10-year federal tax credit to investors of affordable housing. The LIHTC program provides an inventory of affordable housing and allows institutions like UMB to lend to developers who will help revitalize communities.
With housing costs on the rise, the LIHTC program is in higher demand than ever. UMB’s knowledge of its communities, the LIHTC program and expanding network of LIHTC developers has driven more than $75 million in construction and equity bridge loans for qualifying projects, including seven senior affordable housing developments in Missouri and Kansas:
Red Maple Villas (Oak Grove, Missouri)
The recently opened Red Maple Villas is a new, fully occupied 40-unit senior affordable housing project with amenities including a community room with on-site laundry facility, fitness center and business center, plus 69 parking spaces, 22 of which are covered. Red Maple Villas is located near a healthcare facility, daily services, shopping, restaurants and recreational amenities. The project also offers supportive services at no additional cost to tenants. UMB Bank provided $5.5 million in construction and equity bridge loans and a $6.7 million tax credit equity investment.
Woodbine Meadows (St. Joseph, Missouri)
Woodbine Meadows, expected to complete construction later this year, will serve the senior population of St. Joseph and Buchanan County, Mo., which have demonstrated a need for additional affordable senior housing. It will consist of 40 one- and two-bedroom units and the building will feature a fitness room, lounge areas, fully furnished community room with a full kitchen for social events and a computer/library room. The building will be within walking distance of a major shopping center, restaurants and a public library. In conjunction with Affordable Equity Partners, UMB Bank provided $5.2 million in construction and equity bridge loans and a $7.5 million tax credit equity investment.
Frisco Senior Village (Bolivar, Missouri)
Frisco Senior Village is a 42-unit community serving affordable housing needs of seniors and veterans age 55+, with a community building featuring a computer area/library, full kitchen and dining room, and fitness center. The project is in close proximity to many resources for seniors, including grocery stores, retail, pharmacies, beauty salons, restaurants, banks and churches within 1-2 miles. In conjunction with Affordable Equity Partners, UMB Bank provided $4.3 million in construction and equity bridge loans, and the project qualifies for the Community Reinvestment Act (CRA) lending credit for Missouri.
Evergreen Terrace (Kansas City, Missouri)
Evergreen Terrace is a 50-unit residential building under construction to serve the needs of seniors and handicapped families regardless of age. There will be several units designated to fall within area median income (AMI) limits, as well as three units set aside for special needs households. The project will feature a business center/computer lab, courtyard, elevators, outdoor patio and picnic area, walking trails, media/theater room, exercise facility, adult education classes, on-site management and offer limited access as a security feature. In conjunction with Affordable Equity Partners, UMB Bank provided $5.3 million in construction and equity bridge loans and a $8.5 million tax credit equity investment.
Switzer Senior Villas (Merriam, Kansas)
Switzer Senior Villas is new construction of a 45-unit senior affordable housing development, with 40 units set aside for households at or below AMI thresholds. Additionally, there will be one homeless unit reserved for transitional housing, as well as five market rate units that will not be rent-restricted. Project amenities include a community room, fitness room, computer center and a courtyard/picnic area. The project is within reasonable proximity to most locational amenities including healthcare, shopping, employment, recreation and the Johnson County Transit System. UMB Bank provided $4.3 million in construction and equity bridge loans and a $5.4 million tax credit equity investment. The development team for this project also includes Merak Development, Rosemann & Associates and Legacy Bank.
Seventh Day Senior Housing (Kansas City, Kansas)
Seventh Day Senior Housing is new construction of a 24-unit senior affordable housing development, with units set aside for varying AMI levels. The project, sponsored by the Central States Conference of Seventh Day Adventists, will include attached garage parking spaces, green space and a park shelter with picnic tables and a grilling area. The development plans to provide referrals to Meals on Wheels, Wyandotte County Agency on Aging, credit counseling, wellness checks and nutrition checks. UMB Bank provided $4.5 million in construction and equity bridge loans and a $6 million tax credit equity investment.
Town house Renaissance (Kansas City, Kansas)
Town House Renaissance is the restoration and rehab of a historic 14-story building that currently houses 126 affordable senior units known as Crossline Tower in downtown Kansas City, Kan. The project will contain a total of 130 new and renovated units. Project amenities will include a meeting room, tenant lounge and library, exercise room, outdoor lighted patio seating, a tenant outdoor garden area, a community room with full kitchen which will also provide space for a computer room, a laundry and lounge facility on two floors, on-site management and maintenance, video surveillance on all floors and exterior, electronic key building entry and room access and convenient on-site parking. UMB Bank provided $25.5 million in construction and equity bridge loans and a $17.4 million tax credit equity investment to fund and finance this $42 million investment.
In my nearly 15 years of heavy involvement with the LIHTC program, I have never seen a greater need for developers to partner with the right lenders to expand affordable housing options within communities that need them most. The LIHTC program benefits investors and residents, and we are excited about our continued efforts to revitalize communities throughout our footprint.