Our revitalizations breathe new life
into depressed communities—transforming
neglected properties into safe, thriving
and award-winning neighborhoods.
A Total Transformation
Coventry Gardens | Richmond, VA
- Units: 176
- Total Development Cost: $13,600,00
- Total Development Cost Per Unit: $77,300
Coventry Gardens was originally built in 1972 under HUD’s section 236 program along with a HAP contract covering 170 of its 176 two and three-bedroom apartments. In exchange for an equity take-out loan, the prior owner had also entered into a LIHPRHA Use Agreement with HUD, which severely capped future rents.
A highly successful turnaround of a troubled property
In the forty years since the property’s construction, the original general partners had died, leaving control of the property in the hands of their descendants who did not have the expertise nor much interest in operating the property. The property further suffered from very poor financial performance and significant physical neglect as evidenced by two failed REAC inspections and referral to HUD’s code enforcement division. Atlantic American stepped in and negotiated a purchase contract with the owner and simultaneously worked with HUD to forestall action by its CED division, granting us the time needed to put together the financing to acquire and fully renovate the property. As a testament to the property’s transformation, it recently received a near-perfect score of 99 on its most recent REAC inspection.
Historic HUD approvals
To get this deal done, required historic approvals by HUD Headquarters of the assumed LIHPRHA Use Agreement, which we were able to obtain due to the unwavering support of the local HUD field office and our development team attorney’s persistent efforts with HUD Headquarters’ key decision makers. Atlantic American closed on the purchase of the property in March 2010, financed with equity raised from the sale of 9% LIHTC to Boston Capital, Section 1602 Tax Credit Exchange funds from VHDA and a conventional loan from Boston Capital Finance.
The property underwent a thorough “gut” rehabilitation costing approximately $51,000 per unit and was completed under budget and within the fifteen month construction schedule. Among the highlights of the rehabilitation include: the replacement of all waste line plumbing; replacement of old master metered electrical system with modern, individual metered electrical system; abandonment of the master metered gas system; a new free-standing clubhouse (in photograph above) for rental functions and community center space; multiple energy-efficiency and environmentally sustainable practices earned the property EarthCraft certification; the conversion of 10% of the units to fully-accessible homes for the disabled, along with numerous other improvements.
- Atlantic American and its affiliated general contracting company, Precision General Commercial Contractors, Inc., have extensive experience performing large-scale renovations of properties while taking care of the residents’ needs during the process. A move coordinator was hired to provide personal assistance to each resident in their on-site relocation from their old home to newly renovated home.
- Coventry Garden’s newly-built Neighborhood Network community center is a hive of activity with programs provided by a number of area organizations whom we’ve partnered with, all overseen by a full time services coordinator paid for out of property operations.
- Recognized as a NAHMA Community of Quality