Walton Communities – AGG Advises on Multiple Aspects of Affordable Housing Project

Challenge

A key area of focus in Arnall Golden Gregory’s Real Estate Practice is legal services related to affordable housing development and finance. Longtime client Walton Communities and the Housing Authority of the City of Gainesville, Georgia planned the development of the approximately $14.8 million Walton Summit Phase 2. The mixed-finance development will be 90 apartments consisting of 70 low income housing tax credit (“LIHTC”) units and 20 unrestricted units. Walton Summit Phase 2 is part of a master planned development which ultimately will be 252 apartments.

Approach

On behalf of Walton Communities, AGG provided legal advice and services regarding the complex financing mix as well as representation regarding required HUD mixed-finance documentation, such as a regulatory and operating agreement, declaration of restrictive covenants and a ground lease. The financing also included a Community Development Block Grant loan administered by the Housing Authority and federal and state low-income housing tax credit (LIHTC) financing from outside investors. The ground lease and the regulatory and operating agreement require the owner entity to set aside, maintain and operate 13 public housing units for approximately 40 years.

Result

Gainesville, north of Atlanta and near the recreational reservoir Lake Lanier, is a growing city where low-income residents face escalating rents and limited housing supply. Walton Summit is intended to help address that problem. Phase 1 of the development provided 84 units. A phase 3 will follow.