Capital One Bank and Hettig/Kahn Development Corp. will host an event on Friday, Jan. 27, at 10 a.m. to celebrate the grand opening of Cottages at South Acres, a 144-unit, affordable community of single-family homes in the Sunnyside neighborhood on Houston’s Southeast side. The event will take place at 11005 Scott St. Houston, Texas 77047.
Cottages at South Acres is the third phase of the South Acres development and is located adjacent to South Acres 1 and South Acres 2 properties that include 130 four-bedroom single family units. South Acres Ranch Phase I opened in May 2010 and received a U.S. Congressional Recognition Award, as well as a Houston Business Journal Landmark Award. Phase II opened in October 2011.
Through its Community Finance group, Capital One provided a combined $41.2 million in funding for the first two phases, bringing the bank’s total financing of the three-phase development to $76.9 million.
Scheduled participants in the Cottages at South Acres grand opening include: Jim Nicholas, Houston Market President for Capital One Bank; Barry Kahn, project partner, Hettig/Kahn Development Corp.; Congressman Al Green; Tom McCasland, director of the Houston Housing and Community Development Department; Dwight A. Boykins, Houston City Council Member for District D; and additional government officials and community supporters.
Construction on Cottages at South Acres began in September 2014. The 144 single-family rental homes include one- and two-bedroom cottage style units and four-bedroom single-family homes, all with attached garages.
“Fostering the economic well-being of local communities and their residents is a vital part of our work at Capital One Bank,” said Nicholas. “We are proud to help provide more affordable housing for the families of Southeast Houston through the construction of Cottages at South Acres and pleased to support the South Acres development since its inception. At Capital One Bank, we recognize that investing in affordable housing is about much more than financing new construction. It’s about expanding economic opportunities for individuals, families and communities.”
Capital One Bank provided both the debt and equity financing for Cottages at South Acres, including a $15.8 million construction loan and the purchase of $15.2 million in low income housing tax credits issued by the Texas Department of Housing and Community affairs and syndicated by Hudson Housing Capital. Additional financing included $3.1 million in federal Housing and Urban Development (HUD) HOME Investment Partnership funds from the City of Houston Housing and Community Development Department.
“We are excited to be opening Cottages as an additional phase of our nationally recognized award winning South Acres development. The development has been a great revitalization tool for the Sunnyside area of Houston,” said Kahn. “Capital One Bank and our dedicated partners are committed to providing affordable housing for the citizens of Houston.”
The City of Houston Housing and Community Development Department and Texas Department of Housing and Community Affairs identified southeast Houston as an area with a need for quality affordable homes, and Capital One Bank and Hettig/Kahn Development Corp. partnered to meet that demand.
Capital One Bank is committed to investing in greater Houston through innovative partnerships and programs. Over the past four years in Houston, Capital One Bank has provided more than $240 million in specialized financing for 10 affordable housing properties containing 1,217 housing units. Further seeking to stabilize, strengthen and enhance low- and moderate-income neighborhoods, Capital One Bank offers educational and skills-building opportunities for residents, centered on homeownership and personal finance skills.