Affordable Housing Preservation Transaction

In December, FCC completed a long term preservation transaction for a 128 unit apartment complex located in the greater Pittsburgh area. The preservation transaction included the securing of a new project based Section 8 contract for a term of 20 years and the placement of new debt provided by the Federal National Mortgage Association for a corresponding 20 year term. The placement of new debt provided for significant proceeds for capital improvements and the establishment of long term reserves. Significant annual debt service savings were also obtained and a substantial cash distribution was made to the partners of the owning partnership.