Greystone has structured a combined debt and equity package totaling $80.9 million to support the rehabilitation of a 640-unit affordable housing portfolio in rural North Carolina. The portfolio spans 10 properties and is exclusively affordable, with the capital stack designed to preserve and upgrade the existing housing stock.
Greystone Servicing Company LLC is serving as the construction-to-permanent lender on the transaction. The firm is providing $52.5 million in USDA Section 538 loan financing, structured to carry the portfolio through the rehabilitation period and into long-term permanent financing. The USDA 538 component anchors the capital structure as the primary senior debt layer for the multi-property portfolio.
On the equity side, Greystone Real Estate Capital has committed $28.3 million in Low-Income Housing Tax Credit equity. The LIHTC equity is being invested to fund the rehabilitation scope and to support the long-term affordability of the housing. Greystone Real Estate Capital also syndicated the LIHTC equity, with the effort led by Greg Voyentzie, aligning tax credit investors with the portfolio’s capital needs.
Harmony Housing Affordable Development Inc. (HHAD) is acting as the developer for the portfolio rehabilitation. HHAD is working in partnership with co-developer Landura Investment Company, which is participating as a development partner on the project. Together, the development team is using the multi-layered capital stack to recapitalize and renovate the existing rural affordable housing assets.
The financing structure incorporates multiple additional components beyond the new USDA 538 debt and LIHTC equity. The transaction includes the assumption and re-amortization of existing USDA Section 515 loans already in place on the properties. It also draws on Capital Magnet Fund soft loans provided by Foundation for Affordable Rental Housing Holdings Inc., which add another subsidized, mission-oriented capital layer to the deal.
Further funding elements in the capital stack include surplus reserve reinvestments, which recycle existing reserves back into the properties, and deferred developer fees, allowing part of the developer compensation to be paid over time as the project stabilizes. The structure is additionally supported by proceeds from tax-exempt bond investments, adding another source of long-term, lower-cost capital to the rehabilitation effort.
By combining USDA programs, LIHTC equity, soft funds, reserves, deferred fees and tax-exempt bond proceeds, the transaction creates a complex, highly structured financing solution aimed at preserving and improving 640 affordable units across 10 rural communities in North Carolina.
