OUR PORTFOLIO | < back to map
RHAC Portfolio, Texas and New Mexico

Reliant purchased a 1,424 unit portfolio of apartments spread across 29 locations in New Mexico and Texas from a large developer seeking liquidity to redeploy in their construction business.  The properties had been marketed for over a year and no other purchaser had been able to structure an acquisition due to the complex process and myriad approvals required. The portfolio and been in and out of contract with other purchasers, however, none had been able to close. Spread over 1,300 miles and requiring the approval of multiple housing authorities, state agencies and the US Department of Housing and Urban Development (“HUD”) each property in the portfolio was encumbered by a separate HUD Section 8 housing assistance contract.  Reliant was able to structure the transaction in a manner that provided the seller with the maximum proceeds in the minimum amount of time.  Reliant worked with two separate state issuers to receive simultaneous awards of tax-exempt bonds and tax credits for all 20 properties, which resulted in a tax credit renovation and long term preservation of the assets as affordable housing. 

The combination of bond proceeds, a loan from the CAP funds and limited partner tax credit equity provided the capitalization to acquire the portfolio and implement the rehabilitation of the assets.  Dozens of federal, state and private entity approvals were required, including 20 TEFRA hearings (required community meetings), state tax credit and housing finance agency approvals and HUD local, regional and national approvals for various aspects of the transaction. All approvals were successfully obtained.

Reliant managed the $95 million acquisition and renovation program of all the properties, thus enhancing the quality of the properties and preserving them as long term affordable housing. A significant commitment to energy efficiency, conservation and green retrofit was made to the properties. Recycling programs have been introduced, solar energy for hot water implemented, over 1,500 low flow toilets, 900 low flow shower heads and 1,600 faucet aerators were installed (saving 44 million gallons of water annually), drought tolerant landscape planted and energy efficient water heaters installed. Over 6,000 single pane windows were replaced with dual paned energy efficient windows; 3,300 lights were replaced with florescent energy efficient lights and nearly a dozen playgrounds were installed using recycled plastic from milk containers (saving over a million plastic bottles from going into landfills).

Reliant formed a partnership with Texas Council of Foundation for Social Resources, a non profit organization, to manage the assets and provide robust resident services. Programs offered at the properties span a wide range of offerings, including computer learning centers, youth programs, after school care, resume writing assistance, GED classes, ESL classes, job placement assistance, access to community health centers, after school children’s programs, recreational activities and cultural celebrations.