SP Investment Fund, based in California, invests in, rehabilitates and preserves affordable housing housing. In December of 2017, an SP Investment Fund affiliate closed the financing for the purchase, renovation and preservation of two affordable housing communities for seniors in Upstate New York. Nixon Peabody LLP served as counsel to SP on the transaction. The total acquisition and development costs of the two transactions combined is in excess of $40,000,000. Among other sources, the financing for the transactions included tax-exempt bond financing through local issuers, four percent low-income housing tax credits, equity from CREA, LLC. The debt financing was facilitated by Hunt Mortgage and provided through Federal Housing Administration loan under the 223(f) loan program. The transaction is enabling approximatley $8,000,000 in renovations to occur that will preserve the property physically for the long term. In connection with the transaction, the affordability covenants have also been extended. The residents will not need to move out of the properties during the renovation process.
