Community Preservation Partners (CPP) is investing $9.5 million to preserve an affordable housing community in Sacramento, California.
The national affordable housing developer announced that it has acquired Grand Ave Villa in the city’s Del Paso Heights neighborhood. Built in 1974, the 18-unit apartment complex is CPP’s smallest holding and its first community in Sacramento.
CPP plans to invest $9.5 million in total development costs to revitalize the property with substantial interior and exterior upgrades, enhanced security, and the construction of a new community building.
“Historically one of Sacramento’s poorest neighborhoods, Del Paso Heights has been gaining the attention of local stakeholders with planned efforts for revitalization to create more livable and sustainable communities,” said Anand Kannan, president at CPP. “By aligning with local city planners—and offering our experience, financial resources, and creativity—we’ve been able to acquire our smallest community yet and are excited to provide residents with much-needed upgrades and increased safety measures to enhance their quality of life.”
The five-building community consists of three one-bedroom, eight two-bedroom, and six three-bedroom units for residents earning less than 60% of the area median income. A one one-bedroom manager unit also sits within the property.
CPP is investing more than $200,000 per unit in renovations to deliver amenities typical of a market-rate community. Interior rehab efforts include replacement of windows, air-conditioning units, flooring, cabinets, countertops, appliances, and lighting. In addition to a newly constructed community building, outdoor spaces will be enhanced by a spacious tot lot, a dog run, and a barbecue area where residents can gather. ADA (Americans with Disabilities Act) units and ADA path of travel will also be updated as required by local jurisdictions.
The property has a project-based Section 8 Housing Assistance Payments contract covering all of the units and was eligible for a low-income housing tax credit (LIHTC) syndication. A tax credit application was submitted in March and closed at the end of July using 9% tax credit equity and a construction-to-permanent loan. Partners on this project include Banner Bank, WNC, Foundation for Affordable Housing, Paragon Affordable, and Institutional Property Advisors.
Since its founding in 2004, CPP has invested more than $2 billion into neighborhoods across the United States, keeping housing costs affordable for thousands of seniors, families, and individuals. Holding more than 11,000 low-income housing units in its asset portfolio, the award-winning firm continues to expand nationally with headquarters in Irvine, California, and Reston, Virginia.
Source: Affordable Housing Finance
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