More Affordable Housing for Seniors: Regions Bank Announces Transaction Supporting Freedom Village
- None.
- None.
The announcement by Regions Bank regarding the construction of Freedom Village, a 56-unit senior affordable housing development, is a significant addition to the Montgomery area. This project addresses the increasing demand for affordable senior housing, a trend that is rising due to the growing senior population. The inclusion of units for those with incomes at or below 60% and 50% of the area median income (AMI), as well as for homeless seniors or those with disabilities, demonstrates a targeted approach to support vulnerable demographics within the senior community.
The use of federal Low-Income Housing Tax Credits (LIHTC) equity is noteworthy, as it highlights the public-private collaboration essential in fostering affordable housing solutions. LIHTC is a critical tool for encouraging investment in affordable housing and Regions Bank's role in facilitating this investment underscores the bank's commitment to community development and social responsibility initiatives. The project's potential to enhance the quality of life for its residents and contribute positively to the neighborhood's revitalization efforts is a key aspect that can have broader economic and social impact.
Regions Bank's involvement in facilitating a $13.5 million equity investment through the Low-Income Housing Tax Credit program is a strategic move that could have positive implications for the bank's financial positioning and reputation. The LIHTC program offers tax incentives to investors, making it an attractive vehicle for banks and institutional investors to support community development while potentially yielding financial returns.
Such investments can be beneficial for the bank's balance sheet, as they may lead to future earnings through tax credits and interest income from loans associated with the development. Additionally, the bank's role as a Fannie Mae DUS Multifamily Affordable Lender and HUD/FHA Affordable Lender positions it favorably within the niche market of affordable housing finance, potentially leading to increased business opportunities in this sector. The long-term relationship with the developer, as evidenced by multiple transactions, suggests a strategic partnership that could lead to more deals in the future, thereby enhancing the bank's portfolio diversity and stability.
From a market perspective, the development of Freedom Village is indicative of the broader trends in the housing market, where there is a growing need for affordable housing options, particularly for seniors. This project could set a precedent for similar developments and may encourage other financial institutions to invest in community-oriented real estate projects. It reflects a growing recognition of the role that corporate entities can play in addressing societal challenges such as affordable housing scarcity.
The success of this development could influence housing market dynamics in Montgomery and similar locales by increasing the supply of affordable units, potentially stabilizing or lowering rent levels in the area. It may also attract additional investments and spur economic activity in the surrounding neighborhood. The project's alignment with the master plan for the area suggests a thoughtful approach to urban development that can serve as a model for other community revitalization efforts.
By Jennifer Elmore
Construction underway on 56-unit senior affordable housing development with special accommodations.
MONTGOMERY, AL / ACCESSWIRE / January 24, 2024 / Regions Bank on Thursday announced it has facilitated an equity investment that will expand access to affordable housing for seniors in Montgomery.
Freedom Village is under construction on Edgar D. Nixon Avenue near downtown. Developed by the Community Action Partnership of North Alabama (CAPNA), with consultation and additional services provided by the Bennett Group, Freedom Village will consist of 56 two-bedroom units in a three-story, elevator-serviced building. The development is specifically designed to help meet the housing needs of people aged 55 and over.
Within the development, 44 apartments are reserved for seniors earning
Regions Bank's Affordable Housing group facilitated the
Affordable housing provides hope and opportunity.
Phillip Mullins, Affordable Housing relationship manager for Regions Bank
"Affordable housing provides hope and opportunity. It's crucial for the success of any community, and it's another area where Regions Bank can leverage the financial experience and insights of our teams to make a meaningful difference for others," said Phillip Mullins, Affordable Housing relationship manager for Regions Bank. "Regions Affordable Housing works closely with developers, community leaders and others to provide funding for developments so more people can have a safe and affordable place to call home. At a time when the senior population continues to grow, Freedom Village provides the foundation needed to help seniors through the next stage of life."
Regions Affordable Housing LLC is a national Low-Income Housing Tax Credit investor, syndication firm, and leader in affordable housing. Regions Bank is one of the nation's largest participants in affordable housing finance through the LIHTC program, providing comprehensive real estate banking and capital markets services to meet the debt and equity capital needs of developers and investors. Regions Bank is also a Fannie Mae DUS Multifamily Affordable Lender, HUD/FHA Affordable Lender, and Freddie Mac Targeted Affordable Housing lender.
These affordable housing units are a capstone to a master-planned development of this neighborhood, and we are thrilled to have Regions Bank, the City of Montgomery, the Alabama Housing Finance Authority and the Bennett Group as key supporters.
Aron Boldog, director of Real Estate Development at the Community Action Partnership of North Alabama
"These affordable housing units are a capstone to a master-planned development of this neighborhood, and we are thrilled to have Regions Bank, the City of Montgomery, the Alabama Housing Finance Authority and the Bennett Group as key supporters," said Aron Boldog, director of Real Estate Development at the Community Action Partnership of North Alabama. "This 56-unit development will complement the existing affordable housing that has already been developed over the last eight years in this neighborhood very nicely. This has been a long time coming, and it feels good to see the master plan being finished out with this beautiful development."
Robert Birmingham, Montgomery and Central Alabama market executive for Regions Bank, said affordable housing opportunities like Freedom Village reflect how a bank can collaborate with other organizations to produce a shared community benefit.
"At Regions Bank, our mission is to make life better, and we live our mission daily in the transactions our bankers facilitate, as well as our community engagement with organizations meeting a number of needs," Birmingham said. "Our teams in Montgomery and beyond carry great pride in seeing developments like Freedom Village come together, and we appreciate the Community Action Partnership of North Alabama for leading the way in making another affordable option available for Montgomery residents."
About Regions Financial Corporation
Regions Financial Corporation (NYSE:RF), with
View additional multimedia and more ESG storytelling from Regions Bank on 3blmedia.com.
Contact Info:
Spokesperson: Regions Bank
Website: https://www.3blmedia.com/profiles/regions-bank
Email: info@3blmedia.com
SOURCE: Regions Bank
View the original press release on accesswire.com
FAQ
What is the name of the affordable housing development mentioned in the press release?
How many units will Freedom Village consist of?
Who is developing the Freedom Village project?
What is the role of Carastar Health in the Freedom Village project?
How much investment did Regions Bank facilitate for the development of Freedom Village?
