Goldfarb & Lipman is pleased to announce that it helped close the first SPRAC deal in the country last week. SPRAC, which stands for Senior Preservation Rental Assistance Contract, provides project-based rental subsidies to previously unassisted elderly residents of projects funded by HUD’s Section 202 direct loan program. SPRAC was authorized by Congress in 2010, but was funded only recently and until earlier this week, had yet to be implemented. Goldfarb & Lipman represented the developer, Christian Church Homes, in the transaction, which involved a $34 million rehabilitation of the 93-unit Garfield Park Village in Santa Cruz. The rehabilitation, financed primarily by tax credits and tax-exempt bonds, also involved prepayment of the Section 202 loan from HUD, deferral of repayment of a Flexible Subsidy loan from HUD, and a City HOME loan. Congratulations are due to all development team members, including Union Bank, NEF, and the City of Santa Cruz, as well as, of course, Christian Church Homes and HUD.
If you have any questions about SPRAC, please contact Robert C. Mills at Goldfarb & Lipman.