Business Context and Reporting Period
This Form 8-K was filed by Greystone Housing Impact Investors LP (GHI) on February 27, 2026. The filing reports the entry into a material definitive agreement involving the acquisition of two multifamily properties in South Carolina and the amendment of an existing loan facility to finance these assets.
Key Financial Metrics and Transaction Details
- Total Loan Principal: $84,000,000 outstanding under the Amended Loan Agreement.
- New Funding: $42,000,000 in additional principal proceeds advanced to finance acquisitions.
- Acquired Assets: Windsor Shores Apartments (176 units, Columbia, SC) and Century Plaza Apartments (212 units, Greenville, SC).
- Interest Rate: One-month Term SOFR plus 2.75%, resetting monthly.
- Default Rate: 5% higher than the applicable rate or the maximum permitted by law, whichever is lower.
- Hedging: Two swap agreements executed to hedge the floating interest rate on the full $84,000,000 principal.
Material Changes and Transaction Background
The Borrower subsidiaries entered into a First Amendment to a Loan Agreement originally dated December 31, 2025. This amendment was necessitated by the acquisition of the "Post-Closing Properties" via deed in lieu of foreclosure. These properties were previously owned by non-profit entities and held as collateral for mortgage revenue bond investments. The non-profit owners defaulted in February 2026 because the properties, despite rehabilitation, could not achieve operating results required under the bond documents. GHI exercised its rights to acquire the properties to resolve the default.
Material amendments to the loan terms include:
- Modification of definitions and addition of Post-Closing Pledgors.
- Changes to extension requirements upon the initial Maturity Date.
- New Financial Covenants: Requirement to demonstrate Debt Service Coverage Ratios (DSCR) of 1.00:1.00 as of February 15, 2027, and 1.05:1.00 as of June 30, 2027.
Outlook, Risks, and Management Commentary
The filing includes standard forward-looking statements regarding risks associated with short-term interest rate fluctuations, collateral valuations, and the ability to refinance. The Partnership disclaims any obligation to update these statements. The transaction resolves immediate defaults on mortgage revenue bond investments but introduces new debt service obligations tied to floating rates, partially mitigated by swap agreements.
Investor Verification Checklist
- Verify the current operating performance and DSCR of the newly acquired Windsor Shores and Century Plaza properties against the new 1.00:1.00 and 1.05:1.00 covenant thresholds.
- Review the specific terms of the swap agreements (Exhibits 10.1-10.3) to understand the fixed rate exposure and counterparty risk.
- Assess the impact of the $42,000,000 new debt on the Partnership's overall leverage and liquidity position.
- Confirm the status of the original mortgage revenue bond investments and whether the acquisition fully resolved the associated defaults.