LISC San Diego Provides $2.25M Acquisition Loan to City Heights CDC
SAN DIEGO (June 17, 2014) – LISC San Diego recently provided a $2.25 million acquisition loan supporting the acquisition of a 20-unit apartment building by nonprofit affordable housing developer, City Heights Community Development Corporation (CHCDC). This loan will facilitate the rehabilitation of 4348 53rd Street, and lock in lower rents for the 20-unit, garden style apartments, located in the Mid-City San Diego neighborhood of City Heights, for decades to come.
“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% decrease in state and federal investment in affordable housing, with this loan, LISC and CHCDC will preserve 20 units at an affordable level for hard-working families and individuals in City Heights,” noted Lopez.
“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,” added Grimes.
CHCDC’s long term redevelopment plan for the property will feature a rent reduction bringing all the unit’s rents to a level affordable by residents earning 60% or less of the area median income. With the help of a HUD mortgage CHCDC will keep these 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 (GSAF) Program in which California’s Department of Housing and Community Development will provide 25% of the requested funds,a $562,500 credit enhancement. GSAF is a $93 million flexible, low-cost financing program aimed at supporting the creating and preservation of affordable housing throughout the state of California. With the closing of this LISC achieves its second GSAF transaction in 6 months and further illustrates LISC San Diego’s commitment to affordable housing in the region.
Providing financing for real estate projects in low-income communities is one of LISC’s core activities. In addition to acquisition loans, LISC provides financing during all stages of projects including predevelopment, construction and permanent loans. 6,000 affordable homes and apartments built are the result of LISC San Diego’s investments in the region since 1991.
LISC, the Local Initiatives Support Corporation, combines corporate, government and philanthropic resources to help nonprofit community development corporations revitalize distressed neighborhoods. Since 1980, LISC has invested $12.9 billion to build or rehab 298,300 affordable homes and apartments and develop 49 million square feet of retail, community and educational space. For more, visit www.lisc.org.
In San Diego, LISC has invested $212 million to support and rebuild communities throughout the region. These investments leveraged another $843 million to build and rehab nearly 6,000 homes affordable homes and one million square feet of commercial, retail and community space in low-income neighborhoods. For more, visit www.lisc.org/san_diego/.