Ongoing advisory helps affordable housing developer close complex deal

Synopsis

“Nothing about affordable housing is simple,” says President and CEO Carmen Romero of Arlington Partnership for Affordable Housing (APAH). Central United Methodist Church in Ballston Station was no exception. By the time the church turned to APAH in 2022, they were frustrated. For 20 years, they had been trying—on their own—to build affordable homes above their house of worship as part of their ministry to help community members facing housing insecurity. After spending $4 million in predevelopment costs, they were missing the tax credits and construction financing necessary to make their vision a reality.

Carmen knew APAH had to find a way to help, so she turned to her partners at Truist. Thanks to teamwork, creativity, and coordination, the deal moved forward. As a result, 144 families will call Ballston Station home in 2024. This and other shared successes have built trust, and Truist has helped APAH expand into four new jurisdictions outside of Arlington County, Virginia, including Fairfax County and Loudoun County in Virginia, Montgomery County in Maryland, and Washington, D.C.

Solution: Build partnerships at all levels.

“The leadership of Truist knows us. Their credit team. Their risk team. Their investment team. Steve has introduced them personally to me, so when he is bringing forward a project from APAH, they can ask me questions directly,” says Carmen.

The wider Truist team has also gotten to know the wider APAH team, which means Carmen can be less involved in day-to-day problem solving. “My team members solve so many problems on the ground with Steve, they don’t even have to come to me!” she says.

“Steve and his team also care about my team as people,” she adds. “He sent me a note about what a fantastic job a member of my team did on her first closing. She really appreciated hearing that from someone who closes a lot of deals.”

Solution: Expand your view of partners.

When facing a unique challenge, consider all the partners who could help you—and help them understand the big picture.

For Ballston Station, Carmen and her team at APAH met with local and state officials about the unique zoning challenges they were facing. That inspired the state’s housing agency, Virginia Housing, to step up in many ways, she says—including by doing a special study (on needs and costs) to help move the deal forward.

APAH also enlisted representatives from George Mason University, whose Arlington campus is just blocks away from Ballston Station, to talk to potential funders about the benefits of affordable housing. Specifically, APAH noted that their residents are part of the workforce and are key to the region’s economy. (Several investors agreed and signed on.)

Truist has also become a regular sponsor of APAH’s annual “Celebrate Home!” event, and Truist Foundation has provided grant funding to support APAH programs. These philanthropic measures help APAH provide robust resident services that aren’t covered by traditional funding sources for affordable homes.

Talking regularly with your partners can reveal emerging challenges so they may be solved before they snowball. It can also help ensure you’re taking the right steps to work toward your blue-sky goals.

At Truist, that’s called Truist Business Lifecycle Advisory, and it begins with candid conversations with clients about where their business has been, what it needs right now, and where they envision it going next. That groundwork enables Truist relationship managers to proactively bring clients solutions and opportunities for every stage of their business’s lifecycle.