Cheltenham Village (Formerly Lexington Green) - Delaware Valley Development Company

Real Estate Portfolio > Affordable Housing Developments > Cheltenham Village (Formerly Lexington Green)

Cheltenham Village (Formerly Lexington Green)

701 Georgetown Building, Newark, DE 19702
100 Units

Subsidized General Occupancy

Sources of Funds

  • Low Income Housing Tax Credit (LIHTC) equity
  • Delaware State Housing Authority (DSHA) HOME
  • DSHA HDF Preservation Loan
  • New Castle County HOME
  • Permanent loan and equity investment from Delaware Community Investment Corporation (DCIC)
  • Conventional Construction loan
  • DSHA American Recovery and Reinvestment Act (ARRA) Section 1602 Tax Credit Exchange Program
  • DSHA ARRA Section 1602 Tax Credit Exchange Program

Project Description

Cheltenham Village (formerly Lexington Green) is an acquisition and substantial rehabilitation of an existing 125-unit Section 8 family community. This project is unique for DVDC in that it was a “step in the shoes” development, meaning that DVDC acquired the project from a developer who received a 2008 Low-Income Housing Tax Credit award through the DSHA. The project had stalled in the pre-development phase due to the distressed equity market and various other factors. With the blessing of the DSHA, DVDC negotiated to acquire the development along with financing commitments from DSHA and DCIC and move forward with the project. The biggest obstacle faced by DVDC was the time constraints associated with tax credit and ARRA programs. To meet the IRS-required “10% Test” a real estate closing separate from the financing and construction closing was held. A DVDC affiliate entity owned the community while the final pieces to a complicated closing were put in place. The transaction was complex due to many factors, notwithstanding the “step in the shoes.” The community was heavily crime-ridden, boasting a staggering 477 calls to 911 in a 12-month period despite having a 24-hour security presence. Combating crime was the major impetus to reducing the density of the community from 125 units to 100. For this to be achieved, HUD approval was required to demolish two buildings totaling 25 units. The resulting community is a 100-unit Section 8 family community. .

Project Status: Completed 2011