By Christine Serlin, Affordable Housing Finance, April/May 2014
#29, Gorman & Company, Inc.
Gorman and Co., based in Oregon, Wis., isn’t just a housing developer. The company considers itself a community developer, too, building in revitalizing areas in Arizona, Florida, Illinois, and its home state. One of Gorman’s major accomplishments for 2013 was finding new sources of financing for that work.
“We have to be prepared if there are real jolts to traditional funding, like low-income housing tax credits (LIHTCs) or historic tax credits,” says COO Tom Capp. “That’s a bit of the motivation why we’re looking at new sources.”
The firm has had recent success with the government’s EB-5 program, which offers foreign citizens a Green Card if they’ll invest $1 million in an American project that creates or preserves jobs primarily in community development areas.
Gorman is redeveloping the Pabst Brewery site in Milwaukee with three projects. The first was Blue Ribbon Lofts, 100 affordable units financed with LIHTCs and historic tax credits. The second was a historic hotel and restaurant, where the company utilized the EB-5 investments. The third will be market-rate workforce housing with equity from a Chinese developer.
“These financial sources are fueling projects like workforce housing and elements communities want to see us executing in the revitalizing areas,” says Capp. “These sources are touching housing, but not intermingling with the LIHTC.”
The firm has also received approval from HUD’s Rental Assistance Demonstration program for a 300-unit public housing development in Phoenix.