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Community Lending Program Success Stories
Creative Refinancing Clears Way for Senior Housing
Renovation
"This creative approach to refinancing is a
prime example of how the municipal and private sectors can work
together for the common good."
— U.S. Rep. Todd Platts (PA-19)
 At
a ceremony at One West Penn Apartments in Carlisle, PA, this July,
U.S. Rep. Todd Platts and Christopher Gulotta, executive director
of the Cumberland County Housing and Redevelopment Authority (CCHRA),
announced $6.7 million in Community Lending Program (CLP) funding
that has resulted in the innovative refinancing of the complex's
existing mortgage and a lowered interest rate.
The release of nearly $7 million in CLP financing at FHLBank Pittsburgh's
own cost of funds represents one of the largest disbursements from
the Bank for a single project. CLP financing has been structured
as a tax-free loan through CCHRA expressly to reduce the interest
rate and maximize dollars applied to the renovation.
The loan originated with FHLBank Pittsburgh using private capital — not
tax dollars — to help FHLBank member Orrstown Bank fund an
important affordable housing project. Ken Shoemaker, president of
Orrstown Bank and winner of FHLBank's 2006 Council Award, was a
strong partner in this endeavor.
With $1.47 million now available for improvements to One West Penn
Apartments, work is starting on much-needed improvements at the
22-year-old 130-unit complex. Plans include installation of a new
roof, new elevators, kitchen remodeling, upgrades to mobility-impaired
units, installation of hardware on entry doors, lobby redecoration
and additional parking.
"Project owner Carlisle Senior Housing Associates
and CCHRA looked long and hard for the best way to refinance the
40-year, fixed-rate Section 202 loan. Now, with a new 20-year loan
rate, refinancing costs were cut in half. Also, debt service payments
were reduced from pre-payment monthly costs of just over $47,200
to post-refinance payments of $43,400. We also experienced a savings
of more than $80,000 in fees using CLP when compared to alternative
financing.”
—Christopher Gulotta, executive director, CCHRA |
Serving our members in Delaware, Pennsylvania
