Village Commons is a strong investment opportunity in a Low-Income Housing Tax Credit (LIHTC) property poised for value enhancement through the prepayment of its USDA loan. The property is currently operating under a USDA affordable housing agreement and a 1602 program and is eligible for a USDA loan prepayment, creating a pathway for boosting rents, and removing distribution limits, unlocking significant upside potential.
The property consists of 58 units and was developed in 1976. Village Commons was fully remodeled in 2011. The property is well-maintained, with consistent occupancy rates and a stable rent roll. Currently, the USDA loan attached to the property restricts rent and distribution potential, but the prepayment of the loan opens the door for a clear path to increase net operating income, buy increasing the rents to 60% AMI under the 1602 LIHTC LURA.