CPC Mortgage Company, a subsidiary of The Community Preservation Corporation, has structured a $42.1 million loan to support the preservation and rehabilitation of Parkside Estates and Demby Terraces, a 315-unit affordable housing community in Inkster, Michigan.
The properties were developed by Good Housing Partnership in partnership with the Inkster Housing Commission. Under the new financing plan, the community will undergo a comprehensive rehabilitation and a conversion through the U.S. Department of Housing and Urban Development’s Rental Assistance Demonstration program, transitioning the housing from a public housing platform to Section 8.
CPC Mortgage Company is providing the permanent financing through a Freddie Mac Targeted Affordable Housing forward commitment structured as a tax-exempt loan. This execution is designed to support long-term affordability while funding substantial upgrades across the portfolio.
The capital stack also includes a construction loan arranged by a banking consortium. Huntington Bank is serving as the lead arranger and agent for the construction financing, with Deutsche Bank and Associated Bank participating as co-lenders.
In addition, Cinnaire is acting as the Low-Income Housing Tax Credit syndicator for the transaction, supporting the use of tax credit equity alongside the debt financing. The rehabilitation scope is expected to deliver extensive improvements to both the site and the residential units, aligning the property with current standards for affordable housing.
The combined structure of tax-exempt permanent financing, construction loans from multiple banking institutions, and Low-Income Housing Tax Credit equity underscores the use of multiple capital sources to advance the long-term viability of this affordable multifamily community in Inkster.
