Albuquerque, NM, Dec 14, 2010 -- Earlier today, USDA Rural Development State Director Terry Brunner officially opened the new Falcon Ridge Apartment Complex which replaced three flooded apartment complexes in Hatch, New Mexico.
During the ribbon cutting ceremony Brunner said, “The people of Hatch, NM certainly won’t forget the August, 2006 flood disaster which ravaged the town. The construction of these apartment shows that something good can come out of that tragic event. .” Brunner added, “This project is a true example how the federal government, the state government and private enterprise can come together to finance and rebuild an apartment complex to provide a safe and comfortable home to those who will live here.”
On August 14, 2006, a flood devastated the public buildings and the single family units at the three Los Caballos apartment complexes in Hatch. The three complexes were completely destroyed displacing all occupants who resided in the 72 units.
The three multi-family housing projects were owned by the Los Caballos Limited Partnership, Los Caballos 2 Limited Partnership and Los Caballos 3 Limited Partnership and were managed by the J.L. Gray a development company of Las Cruces. The complex was originally financed through the USDA Rural Development Section 515 affordable rural rental housing program.
After it was determined that the buildings had to be demolished and rebuilt, the owners and the J.L. Gray Company and the Housing Authority of the City of Las Cruces worked together to develop a plan to build a new apartment complex. The Falcon Ridge Limited Partnership was formed and the new entity assumed the existing debt of the three Los Caballos properties. The 72 unit complex was built as one project and retained the Rural Development rental assistance subsidy necessary to keep the units rented.
The plan for financing required the cooperation of the New Mexico Mortgage Finance Authority (“MFA”) and Rural Development. MFA provided Low Income Housing Tax Credits through the Tax Credit Exchange Program in the amount of $6,476,074 and HOME Funds in the amount of $500,000. Rural Development approved the transfer of its existing loans in the amount of $2,279,155; insurance proceeds in the amount of $1,773,687 and a guaranteed loan in the amount of $1,332,000 and transferred the rental assistance contracts of the three projects to the new development. Interim construction financing was provided by the Citizen’s Bank of Las Cruces.
Now that the apartment complex has opened, many of the families that were originally displaced by the flood four years ago are now moving into their new apartment units. Many of those families had been living in trailers provided by FEMA.
USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life for rural residents. Rural Development fosters growth in homeownership, finances business development, and supports the creation of critical community and technology infrastructure. Further information on rural programs is available at any local USDA Rural Development office or by visiting USDA Rural Development’s web site at http://www.rurdev.usda.gov