Reed Parque Townhomes

Ground-up Development, Site Preparation, Government Funding, 9% Tax Credits, Strong Operations/Management, Leveraged HUD Relationships

Reed Parque Townhomes (the “Property”) was a ground-up affordable housing development utilizing 9% low-income housing tax credits (“LIHTC”). The 100% townhome design with low density was made financially feasible due to a low land basis (brownfield development).

The Property was developed in an area that lacked substantial development as well as quality affordable housing and sewer infrastructure. Challenges included plugging numerous abandoned oil wells, strict low-income compliance obligations and designing a construction plan within a tight budget with minimal contingencies.

Infrastructure required a packaged water treatment plant tethered to a future obligation to connect to city sewer lines once extended. This was eventually completed.

The Property was sourced through local partnerships and leveraged community development incentives including partnering with a minority owned Historically Underutilized Business (“HUB”).

The initial acquisition involved identifying a suitable site with potential for affordable housing development and securing necessary financing through State of Texas Low Income Housing Tax Credits and a Community Development Block grant issued by the City of Houston.

RMI was actively involved in the detailed planning and coordination, from architectural design to construction within a highly constrained budget from the tax credit syndicators.

RMI completed the development on time, on budget and in strict compliance. Upon, lease-up, RMI received a development fee of $1.3M (15% of eligible basis).

Post-construction, the property faced significant damage from Hurricane Ike but utilized a Community Development Block grant loan for repairs, ensuring compliance with all regulations and maintaining financial performance.

The Property has achieved impressive financial returns over the last ~24 years of a 30.35% IRR and 12.7 EMx, illustrating a successful execution of a complex affordable housing development that continues today.