Georgia Preservation Portfolio

Investing in Your Community, in Your Neighborhood, in Your Future
Collaboration in GA preserves 1,362 Units of
Affordable Housing
Total Project Cost: $117 million
CAHEC LIHTC Equity Investment: $31.6 million
Acquisition & Rehabilitation
37 properties (consolidated from 44)
1,362 total units
781 family / 581 elderly
30 counties across the state
Talbot Village is a 48-unit rehabilitated community for families located in Talbotton, GA.
As the holidays draw near, thousands of residents living in affordable housing in rural Georgia have something
extra special to be grateful for this past year – renovated homes. Nearly 16 months ago, WWJ, LLC, an
affiliate of Boyd Management, Inc., and Greystone Affordable Housing Initiatives, LLC, closed a $117 million
multifamily transaction that positively impacted more than 30 communities in the state of Georgia by financing
the acquisition and rehabilitation of 44 USDA Rural Development (RD) Section 515 properties. Now, as 2014
comes to a close, the rehabilitations are complete and residents are settling into their updated apartments.
The importance of this deal is multi-dimensional. Construction of Rural Development units peaked in the late
1970s, but recent budgets have seen little funding for new construction. Now, these developments, which
have served their tenants well for 20-40 years, need significant capital repairs. With limited new RD housing,
it is essential to preserve the existing supply to ensure they are not removed from the affordable housing
inventory, leaving tenants in rural communities with limited rental housing options. This deal accomplishes
just that by preserving 1,362 units of affordable housing that serve low-income households across the state.
Prior to the renovation, Shady Grove, an 18-unit
family development in Ellaville, GA, was in need of
substantial capital repairs.
The financing structure of this project, which included a $31.6 million investment of Low Income Housing Tax
Credit (LIHTC) equity by CAHEC, has proven to be vital to the affordable housing industry by serving as a
model for similar projects moving forward. “On the surface, this project provided much-needed repairs and
upgrades to an aging portfolio; however, this project’s impact goes much deeper in how it affects the industry
itself. The entire nature of this deal was innovative, and the many partnerships that have formed pave the way
for similar projects throughout the United States,” said Joe Wilczewski, CFO of Boyd Management, Inc. and
Managing Member of WWJ, LLC.
The rehabilitation plan, which consisted of substantial improvements to both the interior and exterior of the
communities, had a positive economic impact in Georgia as well. A majority of the construction costs were
spent directly with Georgia contractors on physical goods and improvements, which brought a great deal of
revenue into the state. Additionally, during the 16 months of construction, workers stayed in local hotels, ate
at local restaurants, and made other local purchases.
With the renovation complete, the residents of
Shady Grove have a new sense of pride in their
This deal has positively impacted numerous people, and the effect this collaboration has had on the residents is palpable. For many, a new sense of pride
now inhabits these homes. Phone calls, letters, and e-mails from grateful tenants have poured in, and hearing how important this project was to so many
people makes all of the years of planning and teamwork well worth it.
The Need for Affordable Housing Is Critical
Housing Landscape 2014 from the Center for Housing Policy reports that despite improvements in the economy since the end of the
Great Recession, “housing affordability remains a severe challenge for millions of working individuals and families.” The housing crisis of
2008 drove more Americans into the rental market, and now the demand for affordable rental housing exceeds the supply. As discussions
regarding tax reform continue, it will be important to remember the LIHTC program’s excellent track record and its essential role in
developing and preserving affordable housing.
What Is the LIHTC?
Created by Congress as part of the Tax Reform Act of 1986, the Low Income
Housing Tax Credit (LIHTC) generates private capital investment used to finance
the construction and rehabilitation of affordable rental housing for households
earning 60% or less of the area median income. According to the Joint Center for
Housing Studies at Harvard University, the housing tax credit is "widely regarded
as the most successful housing production and preservation program in the
nation's history.” Since it was enacted, the LIHTC program has led to the
development of more than 2.6 million units of affordable housin g.
In addition to providing safe, decent, and affordable housing for working-class
families and seniors on limited incomes, the economic impact of the LIHTC
program is visible in communities throughout the country. The development of
affordable housing increases spending and employment in the local economy. The
National Association of Home Builders estimates that for every 100 units
constructed with low-income housing tax credits, 116 jobs are created and more
than $3.3 million in federal, state, and local revenue is generated. Moreover,
affordable housing can affect an employer’s ability to attract and retain
employees. LIHTC investment plays a significant role in community revitalization,
which in turn can improve economic opportunities for local residents.
One of the nation’s leading nonprofit equity syndicators, CAHEC helps finance the
development of attractive and affordable rental housing. Headquartered in
Raleigh, N.C., CAHEC works with investors and developers in eleven states and
the District of Columbia to raise and invest capital in affordable housing, historic
preservation, and mixed-use community revitalization projects. Since its founding
in 1992, CAHEC has raised and committed more than $1.55 billion toward the
development of more than 22,000 units of affordable housing.