City Commission Approves $961,3000 in Funding for Southside Affordable Housing Project

The Tallahassee City Commission recently approved a request for funding for ECG Lake Bradford, LP for Lake Bradford Apartments in the amount of $961,300 from the City’s HOME-ARP funding.

ECG Lake Bradford, LP is proposing to build a 158-unit affordable housing development to serve low-income individuals, families, and seniors located at 1131/1139 Kissimmee Street along Lake Bradford.

Elmington Capital Group , dba ECG Lake Bradford, LP, is a commercial real estate investment, development, construction, affordable housing, and property management firm headquartered in Nashville, TN.

Construction on the $56 million project is set to begin in January 2025 and be completed in the end of October 2026.

Project Financing

Elmington Capital Group applied to and received funding through the Florida Housing Finance Corporation for 4% for Low-Income Housing Tax Credit (LIHTC) and State Apartment Incentive Loan (SAIL) funding for the construction of affordable housing, including conversion of a former commercial property located at 1131/1139 Kissimmee Street.

The developer has secured approximately $52 million in financing. Of the $4,3 million remaining financing gap, the developer will pay 75% with the remaining portion representing the request to the city.

The City has provided $188,700 in the following incentive and grant assistance, as well as in-kind services from staff facilitating federal requirement compliance.

The remaining ask of $961,300 is in the form of direct financial assistance utilizing the City’s HOME ARP allocation, bringing the total commitment from the City to $1,150,000, in addition to staff assistance.

The format for the assistance is in the form of a 55-year loan to the project. The loan carries a 0.01% interest rate. Payments are to be made based on available cash flow after all superior debt has been satisfied. This loan arrangement allows the City assistance to be seen as a “grant” and the repayment terms do not impact the debt structure of the development.