NC Seniors Gain Housing Stability with $1.43M USDA-Backed Loan

CASTLE HAYNE, NC – February 12, 2026 – A significant step toward ensuring long-term housing security for low-income seniors in rural North Carolina has been achieved with the closing of a $1,432,200 permanent loan for The Covenant Senior Housing, a newly constructed 68-unit apartment community located in Castle Hayne.

Facilitated by Churchill Stateside Group, LLC (“CSG”), a national leader in affordable housing finance, the loan leverages the U.S. Department of Agriculture’s (USDA) Rural Development Section 538 Guaranteed Rural Rental Housing Program. This financing provides the critical long-term, fixed-rate capital needed to stabilize the new community, ensuring it remains an affordable haven for its residents for decades to come.

Addressing a Critical Need in Rural North Carolina

The Covenant Senior Housing project directly confronts a growing challenge across the nation and particularly in rural states like North Carolina: the scarcity of safe, quality, and affordable housing for an aging population. As seniors on fixed incomes face rising living costs, the demand for housing solutions that are both accessible and financially sustainable has reached a critical point. This new 68-unit community is designed specifically to meet this demand.

The project offers a mix of income-restricted units tailored to serve those most in need. Of the 68 apartments, 17 are reserved for seniors earning at or below 30% of the Area Median Income (AMI), a designation for extremely low-income households. An additional 11 units are set aside for those at 50% AMI, with the remaining 40 units available for seniors at 60% AMI. This tiered structure ensures that the community can support a diverse group of residents at various low-income levels, fostering a stable and integrated environment. For many seniors in the region, this means the difference between housing security and the constant threat of displacement.

The Financial Blueprint for Rural Progress

The successful financing of The Covenant Senior Housing serves as a powerful case study in the effectiveness of public-private partnerships. The cornerstone of the deal is the USDA Rural Development Section 538 loan program, a financial tool specifically designed to stimulate the creation and preservation of affordable rental housing in communities with populations under 35,000.

Established in 1996, the Section 538 program operates by providing a federal guarantee of up to 90% on loans made by private, commercial lenders. This government backing significantly reduces the financial risk for lenders like Churchill Stateside Group, encouraging them to invest in underserved rural markets they might otherwise overlook. In turn, developers gain access to highly favorable, long-term financing—often with fixed interest rates for terms up to 40 years—which is essential for the long-term operational stability of an affordable housing project.

This structure allows for projects to be built and maintained without relying on continually escalating rents to cover variable financing costs, locking in affordability for the long haul. Dan Duda, Executive VP and National Director of Originations & Acquisitions at CSG, emphasized the program's importance in the original announcement.

“USDA-RD 538 financing is a vital tool for developers delivering high-quality senior housing in rural communities,” Duda stated. “The Covenant Senior Housing is a great example of how long-term, fixed-rate permanent financing can support stabilized operations while ensuring affordability for seniors at multiple income levels.”

A Partnership for Lasting Community Stability

While federal programs provide the framework, specialized financial partners are essential to navigate the complexities and bring these projects to fruition. Churchill Stateside Group, based in Clearwater, Florida, has established itself as a key player in this ecosystem. With over $6 billion in assets under management, the firm has extensive experience in structuring deals that combine various government programs, including USDA loans, HUD/FHA financing, and Low-Income Housing Tax Credits (LIHTC).

This expertise is critical for developers who must align multiple funding sources and comply with stringent federal regulations. By providing the permanent capital solution for The Covenant Senior Housing, CSG ensures that the project moves from the construction phase to a period of stabilized, long-term operation. This transition is a crucial milestone that guarantees the developer can manage the property effectively while adhering to the affordability commitments.

Keith Gloeckl, CEO of Churchill Stateside Group, highlighted the firm's commitment to this mission.

“Our team is proud to help developers bring much-needed affordable senior housing to rural areas,” said Gloeckl. “This closing underscores our ability to provide permanent capital solutions that promote both community stability and long-term affordability through USDA-RD programs.”

The financing not only benefits the residents and the developer but also contributes to the economic health of the Castle Hayne community by providing a stable asset that will serve local citizens for many years.

A Replicable Model for America's Heartland

The successful collaboration between the developer, the USDA, and Churchill Stateside Group on The Covenant Senior Housing project offers more than just 68 new homes; it provides a replicable blueprint for addressing the affordable housing crisis in other rural communities. The combination of targeted federal loan guarantees with the efficiency and expertise of the private financial sector creates a sustainable model for development.

As demographic trends continue to point toward an aging population and persistent housing affordability challenges, particularly outside of major metropolitan centers, such innovative financial partnerships will become increasingly vital. Projects like The Covenant Senior Housing demonstrate that with the right strategy and collaboration, it is possible to build strong, stable, and supportive communities for vulnerable populations across the country.