California Housing Fund Closes First Loan for Affordable Senior Housing
FOR IMMEDIATE RELEASE
Date: April 17, 2013
Contact: Eric Johnson
The California Department of Housing and Community Development Announces Golden State Acquisition Fund Loan for the Purchase and Rehabilitation of Affordable Senior Housing
Sacramento – The California Department of Housing and Community Development (HCD) is pleased to announce the closing of the first loan from the Golden State Acquisition Fund (GSAF), which will support 90 units of low income housing for seniors in the Los Angeles area. The $93 million program provides quick, affordable acquisition financing for the development or preservation of affordable housing in California and was seeded by an initial investment of $23 million by HCD.
The State funds are combined with additional capital from a consortium of seven Community Development Financial Institutions (CDFIs), who will make the loan fund available statewide. The Low Income Investment Fund is the fund’s administrative agent and one of the originating lenders, which also include Century Housing Corp. CSH, Enterprise Community Loan Fund, Local Initiatives Support Corp., Northern California Community Loan Fund, and Rural Community Assistance Corp.
The first GSAF loan provided $9.4 million to Preservation Partners Development (PPD) and Clifford Beers Housing for the purchase of Banning Villa Apartments in the Wilmington area of Los Angeles. Enterprise Community Loan Fund originated the loan to PPD, which will allow the property to remain affordable to low-income seniors for an additional 20 years.
“Affordable and accessible capital, like the funds available in the GSAF, is in high demand throughout California,” said Noni Ramos, Chief Lending Officer at Enterprise Community Loan Fund. “These funds were critical to Enterprise’s ability to provide Preservation Partners Development and Clifford Beers Housing with the capital they needed to preserve housing affordability for the seniors of Banning Villa.”
Brian Prater, Senior Vice President, Strategic Development and Corporate Affairs for Low Income Investment Fund added, “As the fund’s administrative agent, we are pleased that GSAF’s resources are being deployed quickly. That means more affordable housing for Californians who need it most. It is clear that the affordable housing industry needs this type of flexible acquisition financing.”
Banning Villa Apartments, a 90-unit senior housing complex, will undergo a number of upgrades, including new roofs, kitchen and bathroom cabinets and fixtures, carpets, and appliances. Other improvements to the 27-year-old development include renovation of the clubhouse, construction of carports and installation of green features.
“The Golden State Acquisition Fund is a key piece of our efforts to improve the supply of housing in California,” said Randall Deems, Acting Director of HCD. “We look forward to the funds from this program being used to leverage affordable housing development and preservation.”
In addition, the consortium has launched a new website with information about GSAF. The site includes details on fund terms, eligibility, projects, and partners. The new site’s address is www.goldenstate-fund.com.
Funding for the Golden State Acquisition Fund was provided through the Housing and Emergency Shelter Trust Fund Act of 2006, also known as Proposition 1C. Applicants for GSAF funding must demonstrate local government support, the availability of leveraged funds, organizational stability and capacity, and a track record of developing affordable housing.
Source: California Department of Housing and Community Development