( Source: John Latimer Lebanon Daily News, Pa. (MCT) — The Lebanon County commissioners on Thursday approved the refinancing of mortgages on a pair of senior apartment buildings owned by two affiliated nonprofit corporations.
The original mortgages held by Community Homes of Lebanon Valley on Poplar Terrace and by Community Homes of Eastern Lebanon County on Tulpehocken Terrace were held by the U.S. Department of Housing and Urban Development at more than 8 percent interest, said Fred Wolf, solicitor for both nonprofit companies.
Through a deal involving the Lebanon County Redevelopment Authority and Fulton Bank, the companies secured mortgages between 4 and 5 percent interest, Wolf said.
The mortgages will provide tax-free interest to the bank, he added.
Poplar Terrace, located in Lebanon at 605 S. Eighth St., will receive a new mortgage of $3.5 million, and Tulpehocken Terrace, located in Myerstown at 101 W. Richland Ave., will receive one for nearly $2.7 million, said Ray Bender, executive director of the Redevelopment Authority.
The payment savings and additional funds acquired in the refinancing will be used to make improvements to both buildings mandated by HUD, Bender said. They included some cosmetic improvements and upgrades to the accessibility features, infrastructure and sprinkler system, he said.
The financial arrangement required the commissioners’ approval because of the involvement of the Redevelopment Authority, but it will not obligate the county or the authority to repay any of the
debt in the event of a default, Wolf said.
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