California Investments Save Extra Than 700 Reasonably priced Houses from Dropping Affordability Restrictions – Contains 36 Items in Merced County

Daily SF NewsApril 7, 2023

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California Investments Save Extra Than 700 Reasonably priced Houses from Dropping Affordability Restrictions – Contains 36 Items in Merced County

April 7, 2023 – To ensure the availability of affordable housing for low-income Californians underpriced in the rental market, the Department of Housing and Community Development (HCD) on Thursday announced the first of several awards from its new portfolio reinvestment program known. This strategic investment of nearly $155.3 million means 726 affordable housing will remain affordable for at least 55 more years and provide housing for more than 14,000 people over the life of the affordability agreements.

The total number of affordable homes retained as part of the portfolio reinvestment program includes 201 units in the City of Los Angeles, 140 units in San Francisco, 124 apartments in Tulare County, 76 units in Butte County, 71 apartments in Santa Cruz County, 36 units in Merced County, 40 homes in Monterey County, 21 units in Glenn County, 12 units in Los Angeles County, and five units in Sonoma County.

Maintaining existing affordable housing, including ensuring it meets high quality and safety standards as it ages, is part of California’s Statewide Housing Plan’s multi-pronged strategy of building at least 2.5 million new homes by 2030, with a million affordable units. Converting affordable to market housing is a nationwide problem — and the Portfolio Reinvestment Program (PRP) is one solution that will ensure housing stability for low- and very low-income households.

“As California continues to allocate unprecedented resources to building new affordable housing, it is critically important to preserve the affordable housing we already have.” said Lourdes Castro Ramírez, secretary of the Agency for Business, Consumer Services and Housing. “These dollars will help avoid the displacement of individuals and families who may otherwise have little or no opportunity to stay safe and stable.”

The PRP preserves existing affordable housing projects funded by HCD by extending and restructuring affordability agreements; extension of credit terms; Provision of new low-interest, long-term loans for rehabilitation; and providing forgivable loans to capitalize on short-term operating subsidies.

HCD issued a $332.5 million announcement in 2022 regarding the availability of financing on a discretionary basis for affordable homeowners. HCD will continue to review and award eligible applications until all funds are exhausted.

“Extending the affordable lifespan of each of these homes by more than half a century means they will provide safe and stable housing for many thousands of Californians throughout the life of their affordability agreement with HCD,” said HCD director Gustavo Velasquez. “Creating stability at home leads to stability at work and school, laying a foundation for success that then allows a new family to move in and experience the same opportunities.”

The awards announced today include the following:

In the City of Los Angeles, Single Room Occupancy Housing Corporation — commonly known as SRO Housing — received $15,276,799 for preserving 70 homes in the historic Regal Hotel, $13,263,748 for preserving 59 homes at the Golden West Hotel, and $15,995 $.263 for maintaining 72 houses Ward Hotel. SRO Housing is a pioneering affordable housing sponsor in the Skid Row area and has 37 years of experience acquiring, refurbishing and maintaining single occupancy hotels in the neighborhood. Each of the award-winning buildings is over 100 years old and houses extremely low-income people. The PRP funds will support much-needed refurbishment work to improve tenants’ living conditions, including replacing aging plumbing systems, repairing structural and framing systems, and replacing each building’s electrical system. Additionally, Golden West will be upgraded from an elevator to an elevator to improve accessibility for residents. These upgrades will extend the life of each building so they can continue to provide affordable housing in an area of critical need.

Tenants and Owners Development Corporation received $15,537,588 to obtain 140 units at Knox SRO in the South of Market neighborhood in the City and County of San Francisco. Within this development there are 30 units that specifically help people affected by chronic homelessness. PRP funding will allow this development to complete critical repairs so it can continue to serve low and ultra-low income people.

Self-Help Enterprises received $15,160,000 to maintain 60 homes in Villa de Guadalupe and $16,150,000 to maintain 64 homes in the village of Goshen, both located in Tulare County. These developments were built in the early 2000’s to serve low income families. The new PRP rehabilitation loan will allow self-help companies to make critical repairs to both of these projects. Self-Help Enterprises also received $9,508,250 to support the redevelopment of Casitas del Sol, an existing 36 unit affordable housing development in the city of Livingston, Merced County for households with 50% AMI and below.

Mid-Peninsula The Farm, Inc., known as MidPen Housing, raised $11,081,875 to obtain 43 affordable homes in San Andreas, Santa Cruz County. In 2001, MidPen Housing acquired San Andreas in the city of Watsonville, transforming the project from an uninhabitable farm worker camp into an affordable housing community for farm worker families. Within this development there are 42 support housing units for farmworkers.

The Community Housing Improvement Program, Inc. (CHIP) received $5,616,780 for the Shotover Inn Apartments, a 21-unit condominium development serving low-income households in rural unincorporated Glenn County. The Shotover Inn Apartments were built in the 1930’s and have seen constant wear and tear over the years. The last HCD loan it received was in 1987 for rehabilitation. CHIP also received $19,264,519 for the redevelopment of East of Eaton, a 76-unit gated community built in 1992 in Butte County. The new PRP rehabilitation loan will provide Shotover Inn Apartments and East of Eaton with an opportunity to update and improve property condition while extending the property’s remaining useful life and affordability to serve households working in a community where most Jobs are located in agriculture and manufacturing.

The Homes for Life Foundation received $1,534,838 to rehabilitate Wilson House, an affordable six-unit group home in the city of Pasadena that was built in 1905. The Homes for Life Foundation also received $1,639,719 for the rehabilitation of Buchanan House, an affordable six-unit group home in the town of Highland Park that was built in 1907. Both projects are located in Los Angeles County and have operated since 1989 as group homes serving extremely low-income populations with intellectual disabilities. Both projects are over 100 years old and require extensive refurbishment for continued longevity. A wheelchair lift will be added to each property to improve accessibility for tenants with mobility challenges.

The Community Support Network received $394,572 to support the rehabilitation of Grand Avenue, an affordable five unit group home for adults with extremely low incomes and behavioral disabilities in the city of Santa Rosa, Sonoma County. These PRP funds will be used to replace the water heaters, windows and appliances, as well as to replace and repair the water drainage system and damaged asphalt around the property.

Community Housing Improvement Systems and Planning Association, Inc. received $7,590,483 for the rehabilitation of Vista de la Terraza, a 40-unit affordable housing development for 60% AMI households and below in the town of Salinas, Monterey County. The much-needed redevelopment will eliminate safety hazards by repairing upper walkways and removing and replacing balconies. This rehab also includes ADA compliant updates to the outdoor staircase.

Eden Housing, Inc. was awarded $7,278,640 for the redevelopment of Pacific Terrace Apartments, a 28-unit affordable community for 60% AMI households and below in the City of Freedom in Santa Cruz County. The Pacific Terrace Apartments were built in 1996 and the refurbishment is focused on ensuring it meets ADA standards. This includes repairs to sidewalks and asphalt, as well as indoor ADA compliance of units such as showers, bathtubs, toilets and vanities. The refurbishment also includes structural upgrades, new water heaters, energy efficient appliances, and renovation of the common room and laundry room.