Churchill Stateside Secures $24.1MM for USDA Portfolio in Kentucky
Churchill Stateside Group, LLC (CSG), a leader in real estate and renewable energy financial services, has successfully closed financing for the preservation and rehabilitation of a 6-property USDA Rural Development 515 portfolio in Kentucky. This financing deal will help preserve affordable housing across multiple counties in the state, ensuring these communities remain accessible and sustainable for years to come.
The portfolio consists of six existing apartment communities, totaling 221 residential units. These properties, which are part of the USDA Rural Development 515 program, are critical to providing affordable housing in rural areas. As such, the financing is structured to address both the immediate need for rehabilitation and the long-term sustainability of these communities.
CSG’s subsidiary, Churchill Mortgage Investment LLC (CMI), is providing $10.13 million in USDA Rural Development 538 debt to support the rehabilitation of these properties. This financing will enable essential upgrades to the buildings, including improvements to infrastructure, safety, and energy efficiency. In addition, Churchill Stateside Securities, LLC (CSS), also part of the CSG family, is assisting with the bond underwriting process, facilitating the issuance of $14 million in short-term tax-exempt bonds.
The deal also includes the allocation of 4% Low Income Housing Tax Credit (LIHTC) equity, further enhancing the financial structure of the preservation efforts. LIHTCs are a key resource for funding affordable housing projects, and this equity allocation will contribute significantly to the overall rehabilitation process, ensuring the long-term affordability of the properties.
Dan Duda, Senior Vice President and National Director of Originations and Acquisitions at CSG, commented on the significance of this financing. “We are proud to provide financing solutions that help USDA Rural Development 515 owners preserve their communities across the country,” Duda said. “CSG’s ability to facilitate the USDA RD 538 loan, bonds, and 515 loan transfer allows our development and ownership partners to focus on the necessary rehabilitation and development of these properties. We are grateful to the ownership and development teams for allowing us to be a part of this critical preservation work.”
Keith Gloeckl, Chief Executive Officer of CSG, also expressed his satisfaction with the project. “We are pleased to collaborate with the sponsor and USDA Rural Development to preserve these rural multifamily communities,” Gloeckl stated. “The process of transferring, rehabilitating, and preserving these units involves many complex tasks. Churchill has the expertise and experience required to manage these rehabilitations. This is not our first time working on such projects; over the past decade, we’ve successfully supported numerous 515 portfolios in similar efforts.”
The financing package for this portfolio represents a significant step toward addressing the growing need for affordable housing in rural areas. By improving the quality and sustainability of these properties, CSG is helping to ensure that low-income families in Kentucky will have access to safe, well-maintained housing options.
CSG’s involvement in these projects underscores the company’s deep commitment to affordable housing. Over the years, CSG has built a strong reputation for delivering innovative financing solutions to developers and owners of affordable housing properties. The company has a proven track record of working with government programs like USDA Rural Development, as well as Low Income Housing Tax Credits, to make affordable housing projects financially viable.
As part of its comprehensive service offering, CSG provides a wide range of financing solutions, including construction loans, permanent loans, and bond financing. Through its subsidiaries, including CMI and CSS, CSG is an approved USDA Rural Development and HUD/FHA MAP and LEAN lender, as well as a Ginnie Mae issuer, seller, and servicer. This vast array of expertise and resources allows CSG to support multifamily projects across the country, from the initial financing stages to the long-term management of the properties.
The company’s leadership team brings decades of experience in the affordable housing and commercial renewable energy sectors, giving clients access to unparalleled expertise in structuring complex financing deals. CSG’s longstanding relationships with institutional investors further enable the company to provide competitive financing terms that are tailored to the unique needs of each project.
Looking ahead, Churchill Stateside Group remains focused on its mission to help preserve and develop affordable housing across the United States. Through its innovative financing solutions and deep industry knowledge, CSG will continue to play a vital role in ensuring that affordable housing remains a reality for low-income families in rural communities like those in Kentucky.
About Churchill Stateside Group
Churchill Stateside Group (CSG) is a financial services company specializing in affordable housing and commercial renewable energy. The company sponsors tax credit equity investment funds for institutional investors and offers a variety of construction, permanent, and bond financing solutions. With over $6 billion in assets under management, CSG has established strong and successful investment relationships with a broad range of corporate investors.
CSG’s expertise is complemented by its subsidiaries, including Churchill Mortgage Investment LLC (CMI), which is an approved USDA Rural Development and HUD/FHA lender, and Churchill Stateside Securities, LLC (CSS), a registered broker-dealer. Through its multifamily finance programs, CSG serves developers, owners, and investors in the affordable housing sector, providing critical financial support for projects across the nation.
Securities are offered through CSS, a registered broker-dealer and member of FINRA/SIPC. Investment involves risk, and past performance is not indicative of future results.
