Sims Mortgage Funding Closes Loan for Delille Inn In New Orleans

In November Sims Mortgage Funding closed a $2,400,000 loan for Delille Inn, a 51-unit elderly housing project in New Orleans, LA. The loan was insured under the Section 221 (d) (4) substantial rehabilitation program and was structured on an “insurance upon completion” basis. The commitment for mortgage insurance, issued by HUD in February 2008, was part of a complex financing that included low-income housing tax credits and short-term bank debt that the borrower used to acquire the project in April 2008. After the rehabilitation was completed and the contractor and borrower certified their costs to HUD earlier this year, Sims Mortgage Funding obtained HUD approval for a mortgage increase totaling approximately $410,000; with the higher loan amounts, the sponsor was able to recover some of the additional rehabilitation costs it incurred without having to commit additional equity.

Delille Inn - New Orleans, LA

Delille is sponsored by Providence Community Housing, a not-for-profit organization established in 2006 for the purpose of rebuilding housing in New Orleans in the wake of Hurricane Katrina. Delille is the fourth Section 221 (d) (4) loan Sims has closed for Providence this year, with a fifth, St. John Berchman’s, estimated to close in early 2010.

For additional information about our ongoing work with Providence and our initial efforts on the Nazareth financings, please visit www.simsmortgage.com and see our posts “Four Years After Katrina: The Restoration and Renewal Continues” in our News section and “Sims Helps New Orleans Seniors Return Home With Tax Credits and HUD Financing” in our Case Studies section.