HRDC acquired West Edge Condominiums in 2009 using Neighborhood Stabilization Program funds received as part of the Housing Recovery and Reinvestment Act (HERA). The project, which was originally slated for 96 condos, failed during the recession; at the time of the acquisition, only 24 units had been developed, and only one had been sold on the market. HRDC acquired the 23 condos and land for additional units. HRDC elected to redo the site plan to reduce the total units on the site to 84 to allow for more green space. Phase 2 of West Edge (36 units) was developed in 2010; proceeds from sales of Phases 1 and 2 were used to develop the third and final phase (24 units). Local lenders played a large role in the project’s success; the project had not gone through the FHA condo approval process, and the post-recession financing environment required local lenders to provide 30-year, fixed-rate portfolio loans for 80% LTV, with HRDC holding silent second mortgages for the balance.
West Edge Condominiums
Total Project Cost
$11.4 million (NSP and proceeds from sales)
Acquisition of 23 existing units and new construction of 2 subsequent phases comprising 60 units, totaling 83 units for affordable homeownership
All units were sold to households earning less than 120% Area Median Income (AMI); ¼ of units were sold to households earning less than 50% AMI. The average income of purchasing households was $25,000/year, with housing costs (PITI, HOA dues) averaging $620/month.