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WASHINGTON STATE HOUSING FINANCE COMMISSION COMPLETES $1.94 MILLION BOND FINANCING FOR SUMMERFIELD APARTMENTS IN AUBURN

 SEATTLE, June 29 /PRNewswire/ -- A $1.94 million bond financing to purchase and rehabilitate the Summerfield Apartments, a 90-unit multifamily rental project located in Auburn, Wash., was successfully completed today, according to Skip Chilberg, chair of the Washington State Housing Finance Commission.
 "We're very pleased with the acquisition of the Summerfield Apartments," said Jim Soules, executive director of Threshold Housing. "The bond financing enables us to lock in a good interest rate to help ensure long-term affordable housing for low-income households."
 The Summerfield Apartments project is located in Auburn at 12525 Southeast 312th St. Threshold Housing plans to redesign the project site to accommodate the needs of children, Soules said. Project rehabilitation plans also include units and common area refurbishment and exterior improvements.
 The Housing Finance Commission acted as a conduit financier of the Summerfield Apartments for Threshold Housing. Threshold Housing purchased the apartments from the Resolution Trust Corp. (RTC), which acquired the property from a failed savings and loan institution. Threshold is a Washington nonprofit housing development corporation created by the King County Housing Partnership.
 The transaction occurred under the terms of the Affordable Housing Disposition Program of the RTC, which offers incentives to attract owners willing to provide low-income housing.
 "The new disposition process has made it possible to capitalize on repossessed properties, like Summerfield Apartments, and increase the amount of affordable housing available," said Bill Longbrake, chief financial officer of Washington Mutual Savings Bank and chair of the board of trustees of Threshold Housing.
 Under an agreement with the commission, 35 percent of the units at the Summerfield Apartments will be reserved for low-income households for 50 years. Of these units, 20 percent will be reserved for households at 50 percent of the local median income, and 15 percent will be reserved for households at 80 percent of median income.
 Project plans call for the eventual use of the low-income housing tax credit program, if tax credits, as expected, are reauthorized by Congress later this year. If that happens, the number of units set aside for low-income households will increase, under the rules of the tax credit program.
 The RTC will provide a second loan for this project. This transaction is one of the first projects to be purchased from the RTC inventory to increase affordable housing for lower-income households. Said Soules of Threshold Housing, "We could not have accomplished our goal without the cooperation of the RTC's Kansas City, Mo., office."
 The Summerfield Apartments project was financed by the Washington State Housing Finance Commission's Tax-Exempt Bond program which is designed to enable developers to obtain tax-exempt mortgages at below- market interest rates for multifamily housing projects.
 The transaction was made feasible through the sale of the bonds to Seafirst Bank. Private placement of the bonds to Seafirst eliminated the cost of a sales commission that is typical with the sale of bonds, which resulted in lower financing costs for Threshold Housing.
 The Washington State Housing Finance Commission provides below- market financing to buy, build or preserve affordable hou nonprofit cultural and social service facilities. The commission builds partnerships with the private sector to raise capital needed to further these social and economic objectives at no cost to the taxpayers of Washington state.
 -0- 6/29/93
 /CONTACT: Rhonda R. Rosenberg, public information officer, or Sallie Sweet, director, Multifamily Division, of the Washington State Housing Finance Commission, 206-464-7139/


CO: Washington State Housing Finance Commission ST: Washington IN: SU:

SW-SB -- SE012 -- 6763 06/29/93 14:18 EDT
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Date:Jun 29, 1993
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