Churchill Stateside Group Closes $1.43 Million USDA-RD 538 Loan for The Covenant Senior Housing
Castle Hayne, North Carolina – Churchill Stateside Group, LLC (“CSG”) is proud to announce the successful closing of a $1,432,200 permanent loan under the USDA Rural Development (RD) Section 538 Option 1 program for The Covenant Senior Housing, a newly constructed 68-unit senior apartment community located in Castle Hayne, North Carolina.
This transaction highlights CSG’s continued commitment to providing long-term, fixed-rate financing solutions that support the development and stabilization of affordable senior housing in rural communities.
About The Covenant Senior Housing
The Covenant Senior Housing community has been thoughtfully designed to address the growing need for quality, affordable housing for seniors in rural North Carolina. The property consists of 68 units, all serving low-income seniors with a variety of income-restricted options:
- 17 units at 30% of Area Median Income (AMI)
- 11 units at 50% of AMI
- 40 units at 60% of AMI
This mix of income levels ensures that the community serves a broad spectrum of seniors, providing affordable housing solutions to those who need it most. The development is fully stabilized, offering residents a safe, accessible, and well-maintained environment tailored to meet the needs of older adults.
The USDA-RD 538 Program
The USDA Rural Development Section 538 loan program is a key tool for developers and investors in rural affordable housing. The program provides long-term, fixed-rate permanent financing for multifamily housing projects in rural communities, including senior housing, family housing, and special needs projects.
Some of the program’s primary benefits include:
- Long-term financing stability: The fixed-rate structure allows owners to plan and operate without concern for interest rate fluctuations.
- Support for affordability: The program ensures that projects remain accessible to low-income populations by linking rents to AMI.
- Rural community development: By focusing on rural areas, the program encourages growth and stability in regions that may have limited access to quality housing.
In the case of The Covenant Senior Housing, the USDA-RD 538 financing enables long-term operations, ensuring residents can enjoy affordable housing options for decades to come.
Statements from Leadership
Dan Duda, Executive Vice President and National Director of Originations & Acquisitions at CSG, emphasized the program’s importance:
USDA-RD 538 financing is a vital tool for developers delivering high-quality senior housing in rural communities. The Covenant Senior Housing is a great example of how long-term, fixed-rate permanent financing can support stabilized operations while ensuring affordability for seniors at multiple income levels.
Keith Gloeckl, CEO of Churchill Stateside Group, highlighted the company’s role in bringing such projects to fruition:
Our team is proud to help developers bring much-needed affordable senior housing to rural areas. This closing underscores our ability to provide permanent capital solutions that promote both community stability and long-term affordability through USDA-RD programs.
These statements reflect CSG’s mission to provide innovative financing solutions that serve both investors and communities, particularly in markets where access to affordable housing remains limited.
Project Impact on the Community
The Covenant Senior Housing not only delivers high-quality housing but also contributes positively to the local economy and social infrastructure. The development provides:
- Affordable housing options for seniors: Supporting residents on fixed or limited incomes.
- Job creation: Construction and ongoing operations generate employment opportunities in Castle Hayne and the surrounding areas.
- Community stability: A permanent, well-managed housing solution strengthens neighborhoods and reduces displacement risk.
- Quality of life enhancements: The property includes accessible amenities and design features suited for seniors, ensuring safety and comfort.
Through these programs, CSG ensures that affordable housing projects remain financially viable while serving the needs of local communities.
About Churchill Stateside Group
Churchill Stateside Group and its wholly owned affiliates (CSG) serve the affordable housing and commercial renewable energy industries. CSG sponsors tax credit equity investment funds for institutional investors and provides a variety of construction, permanent, and bond financing solutions. With over $6 Billion of assets under management, CSG has long-standing and successful investment relationships with numerous corporate investors. The company’s investor and developer clients benefit from our experienced staff, prominent and proactive senior leadership, and attractive debt and equity platforms. The company, through its subsidiary Churchill Mortgage Investment LLC (CMI), is an approved USDA Rural Development and HUD/FHA MAP and LEAN lender and Ginnie Mae Issuer, seller, and servicer.
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