Corylus

Portland, OR • 120 units • preservation

3 months

Return to full compliance

Operating income increase

100%

Occupancy restored

$850K -> $3.4M

Annual NOI improvement

Two post year 15 LIHTC properties in Portland that were developed by a non-profit under the 9% tax credit program to provide critical family-size homes for families earning 30-60% of Area Median Income. After years of challenging compliance and physical issues, Great Expectations acquired the properties and executed a comprehensive stabilization and renovation program.

The Challenge

Following the original 15-year compliance period, both properties had experienced years of deferred maintenance, compliance challenges, and serious physical issues including frequent break-ins, an unfortunate flood, and roof failure. The properties were in dire need of professional management and capital improvements to serve their family residents adequately.

Our Approach

• Quickly mobilized comprehensive property improvement program upon acquisition
• Installed security fencing to address break-in issues and improve resident safety
• Executed complete unit renovations to restore living conditions to modern standards
• Completed full interior paint program throughout both properties
• Replaced failed roofs to prevent further damage and ensure structural integrity
• Assembled innovative capital stack with Key Bank senior debt, Freddie Mac financing, and Oregon Affordable Housing Tax Credits
• Established new regulatory agreements with State of Oregon and City of Portland to extend long-term affordability
• Brought properties into full compliance with all LIHTC and local regulatory requirements

The Result

Achieved remarkable turnaround with significant financial improvement: (1) Full LIHTC compliance restored within 3 months of acquisition, avoiding loss of tax credits, (2) Occupancy improved from 75% to 100% through professional management, (3) Annual NOI increased from $850K to $3.4M (4x improvement) through combination of improved operations, property tax exemptions, and rent optimization within affordability restrictions, (4) Properties successfully refinanced with Freddie Mac, securing long-term affordable financing and providing partial liquidity to investors. Successfully preserved 120 units of critical family housing for families earning 30-60% AMI, while demonstrating that distressed LIHTC properties can be stabilized profitably with proper expertise and capital. The properties are also home to a Head Start pre-school, serving the broader community with early childhood education.