Lument Closes $28M HUD/FHA Multifamily Loan for Affordable Housing Rehabilitation in Lorain, Ohio
Lument has closed a $28 million U.S. Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA) Section 221(d)(4) loan to support the acquisition and substantial rehabilitation of Western Horizon, a 353-unit affordable multifamily housing community in Lorain, Ohio, the firm announced May 15, 2026.
The financing supports a collaboration between Columbus-based developer TFG Housing Resources and Raise Up. The transaction utilized a component of the Rental Assistance Demonstration (RAD) program that allows for blending RAD with Section 18 of the National Housing Act to fund the preservation of aging affordable housing.
Deal Structure and Financing Terms
The HUD/FHA 221(d)(4) loan provides fully amortizing, 40-year construction-to-permanent financing at what Lument described as a favorable interest rate. In addition to the FHA mortgage, Lument Securities served as the underwriter for $9.2 million in tax-exempt bonds.
The units were converted through the RAD program in conjunction with 4% low-income housing tax credits (LIHTCs) allocated through the Ohio Housing Finance Agency.
Joey Hague, managing director at Lument based in Columbus, led the transaction.
"TFG Housing Resources is passionate about its mission to create quality affordable housing for families in need, and we are honored to help them advance their work," Hague said. "The FHA 221(d)(4) program was an ideal fit as it installs fully amortizing 40-year construction to permanent financing at a favorable interest rate, positioning the community for future success."
Property Background and Rehabilitation Scope
Originally built in the 1950s as three separate communities — Leavitt Homes, Westview Terrace, and Westgate Apartments — the properties have historically operated as public housing. As a result of the RAD conversion utilizing FHA financing, the properties now operate as one consolidated community and are being rebranded as Western Horizon. Post-renovation, all units will be assisted by project-based rental assistance with rents restricted to 60% of area median income (AMI).
Brad Carman, president of TFG Housing Resources, described the project as "one of the largest public housing renovations in Ohio's history."
"Lument's understanding of the complexities of utilizing the RAD program in conjunction with 4% LIHTC, along with its FHA expertise, made for an efficient process and optimal outcome," Carman said. "Their guidance was instrumental in navigating a transaction of this scale."
Sponsors
TFG Housing Resources is a Columbus-based real estate developer focused on the new construction and rehabilitation of affordable housing properties. Founded in 2023, it is associated with The Finch Group, which the firm cites as having a track record of more than 60 affordable housing developments and 10,000 units built.
About Lument
Lument, a subsidiary of ORIX Capital Corporation, is a national commercial real estate finance firm offering Fannie Mae, Freddie Mac, FHA, USDA, and balance sheet financing, as well as capital market lending products. The company has approximately 550 employees in more than 25 offices across the United States. Securities, investment banking, and advisory services are provided through Lument Securities, LLC, member FINRA/SIPC.
Sources: Lument press release, May 15, 2026