Case Study IV

Case Study IV:

Charter Village Apartments

Location:
No. Units:
Financing:
Low to Moderate:
Trustee:

Madison, Tennessee
250
Bond Financed, LIHTC
100%
US Bank Corporate Trust Services

National Homes Trust, Inc (NHT) a 401 (c) (3) purchased a 250-unit garden style apartment community in Nashville, Tennessee in December 1999. Tax-exempt un-rated bonds were issued by Davidson County, Tennessee for a 30-year term. Included to the bond financing was a 3 million-dollar rehabilitation fund. The project was underwritten by Miller & Schroeder and the bonds were purchased by Allstate Insurance. Charter Realty Group (CRG) was hired by NHT to prepare, manage, and implement the 3 million-dollar renovation plan. When Charter took over the property in December 1999, there were 49 vacant apartments (80% occupied). The property suffered from extensive deferred maintenance and residents that were not adhering to the community guidelines. Residents that are not in compliance with the community guidelines were evicted. All vacant units were completely renovated prior to the new resident moving in.

The property was later sold in April 2007. The new Owner recognized the valuable contribution of Charter Realty Group as the managing agent and hired CRG to oversee a 3.7 million-dollar renovation and monitor the HUD and LIHTC compliance regulations.

The renovation included upgrades to the interior units, exterior buildings and grounds. This included all new heating and air conditioning systems, complete siding replacement and building painting, replacement of interior kitchen cabinets, interior and exterior door, carpeting, bathroom upgrades with new tubs and vanities, significant landscaping upgrades and erosion control systems.

With Charter Realty Group’s supervision of the renovation, the renovation was completed on schedule and within budget.

The surrounding community is excited about the improvements to the area.