Acrecent Financial Corp. finances $29M for social housing project in Coamo
Acrecent Financial Corp. confirmed it has provided $29 million in construction financing to Residences at El Eden LLC for the planned development of a single-family residential project in Coamo to provide relocation assistance to eligible homeowners affected by hurricanes Irma and María.
El Edén, which will be developed in phases, will comply with applicable design parameters, and is certified by the Department of Housing under the Community Development Block Grant Disaster Recovery (CDBG-DR) Repair, Reconstruction or Relocation (R3) program, and is funded by the U.S. Department of Housing and Urban Development.
The program provides relocation assistance to eligible owners whose homes were affected by the passage of the hurricanes in 2017, company officials said.
The first phase of the project involves the construction of 150 residential units, which is slated to start within the next three months and be completed by the end of the year, developer Tito Rodríguez said.
“The viability of completing the first phase this year is partly due to ReddiForm’s innovative construction technology, used by the contractor, despite the challenges faced by affordable housing builders due to high material costs and limited labor,” he said.
In the following phases of the development, more than 700 additional housing units are expected to be built over a two-year period.
As a certified planned development, the project allows grants to be given for possible purchase by the Department of Housing, accelerates the delivery of completed units to those who are in most need, and promotes community development, which is one of the main objectives of the program.
“This financing is the first we have made under the voucher-based R3 program for projects that we hope will trigger the use of assigned federal funds and close the gap of adequate housing for low- to moderate-income families, which is one of the most urgent needs on the island given the limited inventory,” said Eric Delgado, business development manager of Acrecent.
The financing of this project will have a direct social and economic impact not only in the municipality of Coamo and its communities, but also in surrounding towns of the central and southern regions of the island, company officials said.