Greystone Housing Impact Investors LP

Greystone Housing Impact Investors LP (GHI), through its subsidiaries, has entered into a significant new financing arrangement, securing a Loan Agreement for up to $84,000,000 with BankUnited, N.A. This facility is crucial for GHI's strategic repositioning of certain assets. An initial principal amount of $42,000,000 was drawn on December 31, 2025, and released on January 2, 2026, to finance the acquisition of two multifamily residential properties: The Park at Sondrio Apartments (271 units in Greenville, SC) and The Park at Vietti Apartments (204 units in Spartanburg, SC). These properties were previously collateral for mortgage revenue bond investments held by GHI, which experienced events of default in January 2026 due to inability to achieve required operating results. GHI exercised its rights to acquire these properties via deed in lieu of foreclosure, converting them from market-rate to rent-restricted affordable properties after rehabilitation.

**Loan Structure and Terms:** The loan bears a floating interest rate of one-month Term SOFR plus 2.75%, resetting monthly, with an initial maturity date of December 31, 2027, extendable to December 31, 2028. The Borrower paid an initial origination fee of $252,000 and arrangement/agency fees of $78,000. The remaining $42,000,000 of the facility is available for future advances to acquire additional multifamily properties, contingent on future lender participation and payment of additional fees. The loan is secured by pledges of ownership interests, mortgages on the properties, and swap agreements hedging the floating interest rate.

**Guaranties and Covenants:** The Partnership (GHI) provides an absolute, unconditional, and irrevocable guaranty for all Borrower obligations under the Loan Agreement. This commitment is backed by strict financial covenants for GHI, including maintaining liquid assets of not less than $6,250,000 (or $7,500,000 if requested) and a net worth of not less than $200,000,000, both measured quarterly. Additionally, an affiliate, Greystone Select Incorporated (GSI), provides a separate guaranty of $8,400,000, subject to reduction upon prepayment. GSI is also subject to financial covenants, including maintaining total liquidity of not less than $30,000,000, total net worth of not less than $370,000,000, and a leverage ratio no greater than 4.50:1.00. The Borrower entities themselves are subject to extensive operational and financial covenants, including debt service coverage ratios of 1.00:1.00 by December 31, 2026, and 1.10:1.00 by June 30, 2027.

**Strategic Implications:** This transaction signifies GHI's proactive approach to managing its investment portfolio, converting defaulted bond investments into direct property ownership. By taking control of these affordable housing assets, GHI aims to stabilize operations and potentially enhance long-term value. The availability of additional financing capacity suggests further expansion in the multifamily sector. The comprehensive set of covenants across GHI, its subsidiaries, and GSI underscores the lender's stringent requirements and the significant financial commitment and oversight involved in this new debt. While the move addresses defaulted assets, it also introduces new debt obligations and associated risks.