Our client’s need
Care Net Pregnancy Center of Dane County (Care Net), a pregnancy and sexual health specialty clinic and residential program for pregnant single mothers in Wisconsin, was donated a vacant lot adjacent to its existing center to further its mission of providing medical services, education, housing, and ongoing support for mothers in need.
Care Net hoped to use the site to build an affordable housing and childcare facility, but the organization had no real estate development experience and limited funds available. Given the nature of its services and client demographic, Care Net’s leadership knew the Low-Income Housing Tax Credit (LIHTC) could be a viable funding method but lacked experience in applying for and closing a highly competitive transaction of that nature.
Baker Tilly solution
To move the project forward, Care Net engaged Kothe Real Estate Partners (Kothe) as a fee developer for the transaction and Baker Tilly as a LIHTC transaction and financial consultant. Based on our extensive experience with the Wisconsin Housing and Economic Development Authority, we knew it would be even more challenging for this project to win a LIHTC award given Care Net’s lack of development experience. We provided numerous advisory services to best position the project for funding, including:
- Educated the development team and Care Net’s board of directors on the LIHTC application process and program requirements
- Provided insight on the state’s application process and scoring criteria
- Performed financial structuring and modeling
- Strategized on and completed the LIHTC application
- Strategized on and completed an Affordable Housing Program (AHP) application to secure soft funds from the Federal Home Loan Bank of Chicago
- Identified potential investors and assisted in negotiating the deal terms
- Reviewed transaction closing documents
With the help of Baker Tilly, Care Net and Kothe successfully secured a LIHTC award and closed the transaction with a national syndicator. Construction on Eagle Harbor Apartments, a new $5.7 million mixed-use building with 36 residential units and a child care facility, is now complete and lease-up has begun. The residence will provide safe, quality affordable housing for low-income and market rate tenants, with units dedicated to providing a long-term housing solution for mothers at risk of homelessness and for qualified graduates from Care Net’s existing residential maternity program.
For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.