Tax-Exempt and Taxable Bonds Finance Construction Costs for 387-Unit Community

Greystone affiliate, America First Multifamily Investors, L.P. (NASDAQ: ATAX) (“ATAX”), today announced that it has provided $153,637,000 in tax-exempt and taxable construction loans for a new 387-unit affordable housing community in Elk Grove, California. Frank Bravo, Managing Director at ATAX, originated the transaction.

Located at the southeast corner of Bruceville and Poppy Ridge Roads, Poppy Grove Development in Sacramento County is a three-phrase affordable apartment home community that, upon completion, will include 14 residential buildings, a business center, clubhouse, outdoor pool, laundry facility and an outdoor playground and recreation area, as well as gated access and security on the 16.73-acre site. The units will be restricted to residents earning a range of 30% to 80% Area Median Income (AMI).

At stabilization, and no later than 36 months from initial closing, the tax-exempt loan for the project will be partially paid down and Greystone will provide up to $42.8 million in permanent Freddie Mac Tax Exempt Loan (TEL) financing in the form a 15-year term, 40-year amortized facility.

As a completed asset, the multifamily community will be owned by Poppy Grove I, LP; Poppy Grove II, LP; and Poppy Grove III, LP -- each a California limited partnership. The borrower’s administrative general partners are affiliates of UrbanCore Development, LLC, and E. Smith & Company, Inc., and the borrower’s managing general partner are affiliates of Oakland Economic Development Corporation, a California nonprofit corporation. The limited partner and tax credit buyer is Red Stone Equity Partners.

“We are honored to leverage our expertise in affordable housing and work with partners who share our vision for addressing the affordable housing crisis in Sacramento,” said Bravo.

“The Poppy Grove ownership is elated with the construction financing provided by ATAX,” said Reese A.  Jarrett, Co-Managing Member. “Our great relationship with Frank Bravo and the ATAX team was integral to completing the financing on this affordable housing development which will enrich the lives of 387 families that will call Poppy Grove home.”

Ken Rogozinski, CEO of ATAX, added, “This project would not be possible without critical tax-exempt financing, which enables developers to create housing that addresses the demand for affordable housing in the Sacramento area and throughout the nation.”

Greystone, the #1 provider of HUD-insured commercial loans by volume, is also a Top 10 provider of Fannie Mae and Freddie Mac affordable housing loans. In 2019, a Greystone affiliate acquired the parent of the general partner of America First Multifamily Investors, L.P., which manages over $1 billion in assets consisting primarily of mortgage revenue bonds intended for multifamily affordable housing construction and permanent financing.

Greystone affiliate, America First Multifamily Investors, L.P. (NASDAQ: ATAX) (“ATAX”), today announced that Brett Southworth has joined the firm as a Managing Director. Bringing approximately 20 years of experience in tax-exempt bond financing, Mr. Southworth will focus on structuring transactions for clients in the seniors housing and healthcare sectors utilizing municipal bond financing and Greystone’s broad suite of debt solutions.

Mr. Southworth joins ATAX from Wells Fargo, where he served as Managing Director, Public Finance, Healthcare and Senior Living for three years working with clients on capital markets solutions. Prior to joining Wells Fargo, Mr. Southworth spent almost two decades at Bank of America, most recently as a Director in Public Finance Healthcare and Senior Living.  During his career he has executed debt financing for U.S. healthcare and senior living borrowers, including rated and non-rated transactions, with an aggregate par amount in excess of $15 billion. His experience includes the origination and execution of both tax-exempt and taxable bond financings, bank placements, bridge loans, subordinated debt, issuer repurchases, derivatives and other financing products.

Mr. Southworth earned a Bachelor’s degree from the University of North Carolina, Chapel Hill, and an MBA from Columbia Business School in New York City.

“Brett’s extensive bond financing expertise and deep relationships across the seniors housing and healthcare sectors will be an asset to the ATAX platform as we continue to expand our investments into financing for new and substantially rehabbed seniors housing and skilled nursing facilities,” said Ken Rogozinski, CEO of ATAX. “It’s exciting for us to expand our lending product offerings from multifamily to the seniors and healthcare space, and we are thrilled to have Brett helping to lead the way.”

Safe Harbor Statement

Information contained in this press release contains “forward-looking statements,” which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, risks involving current maturities of our financing arrangements and our ability to renew or refinance such maturities, fluctuations in short-term interest rates, collateral valuations, mortgage revenue bond investment valuations and overall economic and credit market conditions. For a further list and description of such risks, see the reports and other filings made by ATAX with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2021 and its Quarterly Report on Form 10-Q for the period ended June 30, 2022.  ATAX disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.