Maintaining the affordability of our nation’s communities can be a daunting task, especially for the public entities that are responsible for managing many affordable housing properties. Public housing authorities often face the unfavorable combination of rising costs to maintain legacy properties as they age and the declining desire from the public to support funding for affordable housing projects. As political goodwill shifts and the regulatory environment continually evolves, housing authorities’ problems only grow.
CPP is available to assist the struggling housing authorities without sacrificing the homes they manage. As a well-capitalized subsidiary of WNC & Associates, we are in a unique position to partner with housing authorities that need to divest assets.
As an example, take the Housing Authority of the County of San Joaquin. After the City of Stockton filed for bankruptcy in the aftermath of the Great Recession, the county housing authority was unable to afford basic upkeep on its Franco Center property, which is home to about 110 low-income senior citizens.
CPP stepped in and purchased the property from the housing authority. With the help of Low Income Housing Tax Credits, we were able to then rehabilitate the senior living facility and ensure that affordability was preserved for years to come for all of the Franco Center’s residents.
Another example of teamwork in action came about in the increasingly expensive city of Portland, OR, where the median rent payment increased 6.8 percent from 2016. CPP assisted the non-profit housing authority Home Forward, by acquiring one of their North Portland properties, Plaza Townhomes. Our ability to rehabilitate the property and preserve affordability shields the residents of Plaza Townhomes from the affordability crisis wreaking havoc all over the Pacific Northwest.
Such public-private partnerships are ultimately the ideal solution for everyone involved:
- The housing authority is no longer obligated to maintain properties it cannot afford.
- The taxpayers are not pressured to fund projects they no longer favor.
- The residents continue to live in their homes at rates they can afford.
Partnering with housing authorities is just one way we are able to leverage our own resources for the good of the community. When housing authorities are willing to explore their options and work together with private sector companies, we can build successful partnerships that keep residents in their homes and maintain affordability of neighborhoods for decades.