The San Diego chapter of the Local Initiatives Support Coalition recently provided a $2.25 million loan supporting the acquisition of an apartment building by nonprofit affordable housing developer City Heights Community Development Corporation.
This loan will facilitate the rehabilitation of a 20-unit, garden-style apartment complex at 4348 53rd Street and lock in lower rents for tenants.
“San Diego is facing a critical shortage of affordable housing with an estimated shortfall of more than 125,000 homes affordable to San Diego County households living in poverty,” said Edward Lopez, LISC San Diego executive director.
“While San Diego has seen a 77 percent decrease in state and federal investment in affordable housing, with this loan, LISC and CHCDC will preserve 20 units at an affordable level for hardworking families and individuals in City Heights,” he said.
“We are delighted to have completed this purchase with the assistance of our partners at LISC,” said Ken Grimes, CHCDC executive director. “Providing quality affordable housing in livable neighborhoods is our core mission at City Heights CDC and this is a great opportunity to do just that,” he said.
CHCDC’s long-term redevelopment plan for the property features a rent reduction that will make all of the units affordable for residents earning 60 percent or less of the area median income.
With the help of a HUD mortgage, CHCDC will keep the reduced rent in place for at least 40 years -- an important factor in a neighborhood affected by higher rents and rising property values. CHCDC will also make health, safety and livability improvements to the building and renovate several kitchen and bathrooms within units that have fallen into disrepair.
The loan goes through the Golden State Acquisition Fund Program, in which California’s Department of Housing and Community Development will provide 25 percent of the requested funds, a $562,500 credit enhancement. GSAF is a $93 million flexible, low-cost financing program aimed at supporting the creation and preservation of affordable housing throughout California. This is LISC San Diego’s second GSAF transaction in six months.
Source: Local Initiatives Support Coalition San Diego