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League-Sponsored Bond Agency Issues $56.8 Million in Tax-Exempt Bonds for Affordable Housing in Santa Ana, Concord and New Markets Tax Credit Financing for CARE Center in Oakland

September 1, 2017
Some of the most significant benefits of League membership for cities since 1988 have flowed from the League’s co-sponsorship of the California Statewide Communities Development Authority (CSCDA) and California Statewide Communities Development Corporation (CSCDC).
 
This program provides a variety of public agencies and developers access to low-cost, tax-exempt financing and economic development tools. CSCDA recently issued a total of $56,860,907 in tax-exempt multi-family affordable housing bonds for Heninger Village Apartments in Santa Ana and Sun Ridge Apartments in Concord, and New Markets Tax Credit (NMTC) allocation to Lao Family Community Development (LFCD) to finance its new CARE Center, the rehabilitation of a 30,000 square foot building located in East Oakland that will serve as its new headquarters as well as a multi-service community facility.
 
About Heninger Village Apartments
 
Heninger Village Apartments is an acquisition and rehabilitation of 58 multi-family affordable housing apartments by Heninger 2016 LP. The project sponsor is KDF Communities. Heninger Village will continue to be 100 percent affordable and provide apartments to low-income residents in Santa Ana.
 
CSCDA and KDF partnered with R4 Capital Funding, LLC and Orrick, Herrington & Sutcliffe, LLP to provide the $9,500,000 in tax-exempt multi-family affordable housing bonds for Heninger Village. The project will undergo an extensive interior and exterior renovation ensuring that residents have an updated, safe, and affordable community to call home for years to come. The financing of Heninger Village will maintain the affordability of units for low-income tenants for 55 years.
 
About Sun Ridge Apartments
 
Sun Ridge Apartments is an acquisition and rehabilitation of 198 multi-family affordable housing apartments by Monument Boulevard Housing Associates, LP. The project sponsor is Community HousingWorks. Sun Ridge will continue to be 100 percent affordable and provide 84 one-bedroom, 98 two-bedroom, and 14 three-bedroom apartments to low-income families in Concord.
 
CSCDA and Community HousingWorks partnered with Jones Lang LaSalle Multifamily, LLC to provide the $33,930,907 in tax-exempt multi-family affordable housing bonds for Sun Ridge. The rehabilitation will include extensive exterior and interior renovations which include energy and water efficiency upgrades. The financing of Sun Ridge will maintain the affordability of units for low-income tenants for 55 years.
 
About LAO Family Community Development
 
LFCD is a nonprofit organization founded in 1980 whose mission is to build healthy communities by empowering vulnerable low-income refugees, immigrants, public assistance recipients, youth, seniors, and high barrier unemployed individuals and families to achieve self-sufficiency. LFCD has 10 locations in three counties and each year, LFCD delivers asset development, financial education, employment services and family support to over 15,000 immigrants, refugees, and low-income U.S. nationals in over 20 languages.
 
CSCDC partnered with JPMorgan Chase to provide $13,430,000 in NMTC funding to finance the CARE Center. Other financing sources included: a loan from Clearinghouse CDFI; a California State Parks Prop 84 grant; and other capital campaign proceeds. The center will include LFCD’s administrative offices and conference rooms, from which it will carry out its wide array of programs and services for low-income individuals including financial literacy, adult and youth education, employment and career services, healthcare access, income and asset development opportunities, and immigration and transitional services. The CARE Center will include a senior center with indoor community space, individual counseling offices, and an outdoor patio and therapy garden. The CARE Center’s youth services space will include a dance studio, indoor space for after-school programs, computer lab, and an outdoor active space with basketball court.
 
An additional 18,000 square feet in the CARE Center will be available for lease to locally-owned businesses and nonprofit organizations. The leased spaces will include a café, a commercial catering kitchen, and co-working and individual office spaces for local small businesses, nonprofit organizations and entrepreneurs.
 
The CARE Center will allow LFCD to serve an estimated 10,000 additional people (an increase of 100 percent) in Oakland. Nearly 100 percent of the clients that LFCD serves are low-income individuals. The rehabilitation of the building is expected to result in 45 construction jobs, and the new CARE Center is expected to create 47 new permanent jobs.
 
Background
 
CSCDC was created as an affiliate community development entity by CSCDA to facilitate investment in low income communities through the use of New Markets Tax Credits. The NMTC program, passed by Congress in 2000, encourages investments in low-income communities by providing a tax incentive for community development lenders and the capital markets to invest in communities that historically have had poor access to capital.
 
CSCDA is a joint powers authority created in 1988 and is sponsored by the League of California Cities® and the California State Association of Counties. It was created by cities and counties for cities and counties. More than 500 cities, counties and special districts are program participants in CSCDA, which serves as their conduit issuer and provides access to efficiently finance locally-approved projects. CSCDA has issued more than $50 billion in tax exempt bonds for projects that provide a public benefit by creating jobs, affordable housing, healthcare, infrastructure, schools and other fundamental services. Visit CSCDA’s website for additional information on the ways in which CSCDA can help your city.


 
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