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Anderson Apartment Project Advances

RECORD SEARCHLIGHT

By Kimberly Bolander
January 13, 2004

Developers rehabilitating the Anderson Oaks apartments into affordable senior housing hope to soon start demolishing three of the buildings at the notorious complex.

Long Beach-based LINC Housing Corp., the developer and owner for the renewed apartments, will invest $6.1 million, and plans to complete the project in early 2005, President Hunter Johnson said.

The completed senior apartments will be called Seasons at Los Robles, with rents ranging from $367 to $536 for its 14 one-bedroom and 45 two-bedroom units.

“With renovated structures, new landscaping and a total exterior facelift, Seasons at Los Robles will have a brand new look that will erase all negative associations with the old, crime-ridden property that it was before this transformation,” Johnson said.

Anderson Oaks was the site of a drug raid in February 2000 that led to the arrests of 21 suspects, many of whom were residents. Shasta County’s Children’s Protective Services also took 10 children into custody. The property was later abandoned and has been vacant for more than two years.

So far, interiors have been gutted and walls and windows removed. Three of the complex’s 10 buildings were demolished in September 2002.

By March, developers hope to demolish three more buildings and replace them with a larger building, LINC Vice President Grace Quach said.

Plumbing, electrical and roofing systems will be replaced, and the remaining original four buildings will also be rehabilitated. The entire job is expected to be finished in a year or less.

“Everything except the exterior walls will be new,” Quach said. “The exterior will be refurbished and painted. This apartment complex will look almost brand new.”

The apartments are for seniors age 55 and older earning between 50 percent and 60 percent of area median income. The median household income in Shasta County is just over $34,000 a year, according to the 2000 Census.

Three of the units will be fully handicap accessible. The remaining units will be handicap adaptable with wheelchair-friendly showers, low kitchen counters and door levers instead of knobs. Laundry appliances will be front-loading to accommodate wheelchairs.

Building a Better City: Europe’s Affordable Housing Standard

SHELTERFORCE ONLINE

By Hunter L. Johnson
January/February 2004

In the United States, nonprofit builders of affordable housing often compete against each other as well as against larger, better-capitalized private builders for limited low-income tax credits and other scarce sources of low-cost financing. Because of this stiff competition, it’s not uncommon for needed and economically viable projects to be left on the drawing board. Even if money is available, nonprofits frequently must jury-rig financing from several different public and private sources. Financing packages to build affordable housing can be extremely time consuming and enormously complex.

Such is not the case in Europe, where affordable housing is dominated by nonprofit housing associations; few private builders are involved. Consequently, a sense of solidarity and cooperation has resulted among the nonprofit builders. This has led, in turn, to financing affordable housing projects by nonprofits in Europe that is much simpler, faster and more efficient than in the U.S.

I recently was part of a group of U.S. affordable housing officials, sponsored by the Housing Partnership Network, that saw first-hand the strides that the United Kingdom and the Netherlands and the have made in providing quality affordable housing. In both countries, affordable housing is a top public priority, and local and national governments have a well-articulated affordable housing strategy. Unlike California and many other parts of our nation where the lack of affordable housing is a continuing crisis, low-cost housing in the U.K. and Netherlands is available to people who need it, when they need it. Both countries have long histories of development and ownership of affordable housing through nonprofit housing associations dating back to the Industrial Revolution. Early housing associations were rooted in labor and church groups, although today’s organizations are non-sectarian and no longer affiliated with labor or interest groups.

Nonprofit affordable housing developers in the U.K. and the Netherlands don’t have to struggle for funding; they have direct access to significant financial resources. We met one developer who has $77 million in capital available to build projects. In the Netherlands a loan guarantee program, funded by the builders, allows developers to borrow funds from commercial banks at low rates. Moreover, these developers don’t have to submit endless and multiple funding applications. Two other major advantages that affordable housing developers in Europe have are size and strength. In the U.K. and the Netherlands, several large nonprofit housing entities own 50,000 to 70,000 dwellings; many others control more than 20,000 units. This is substantially larger than the largest comparable entity in the U.S., which owns approximately 12,000 low-income units. Because they are larger, European nonprofits are stronger and more politically connected than their U.S. counterparts. Their work usually has the blessing of both local and national governments, and consequently they face less opposition to their plans.
In most European cities, affordable housing is prevalent, an accepted part of the community. A case in point is Tillburg in the Netherlands, whose 165,000 inhabitants make it the nation’s seventh largest city. In Tillburg, 51 percent of the housing is owned by one housing association and is considered affordable. These units rent for one-half to two-thirds of market-rate rents. Another example is London, where developers are required to have 25 to 35 percent of their newly built units affordable.

These European countries have other advantages over the U.S. in providing lower-cost housing. One is “blending”: Affordable housing in Tillburg, London and in most other European cities is mixed with market-rate housing, so that affordable units and the people who live in them are indistinguishable from market-rate housing and their residents. Thus, there is no stigma associated with living in low-income housing.

Another major point of departure is income eligibility. In the U.S., those living in affordable housing must qualify for that housing annually. In the U.K. and Netherlands, once qualified, you are qualified for life, although if a resident’s income changes, any rental assistance may be increased or decreased.

The European housing associations that develop and manage affordable housing are social-oriented businesses, meeting housing needs in a responsible and professional manner that fosters quality of life and generates the new capital required for more affordable housing development. Certainly, not all is perfect. Both the Dutch and British housing associations are dealing with decreasing government assistance, privatization of public housing stock and organizational consolidation. But affordable housing is such an ingrained part of their societies that housing officials are able to work through these problems without interrupting or endangering the affordable housing supply.
The U.S. affordable housing industry does have its advantages and Europe’s housing associations are looking to the American affordable housing model for insight and inspiration. Whereas Europe’s affordable housing sector is largely centralized and institutionalized, the American system is more decentralized and has much less support from the federal government. This independence has generated more product innovation and management entrepreneurship, including creative partnerships with both the public and private sectors that many European housing officials find intriguing. One U.S. feature that is of particular interest to Europeans is the well-developed secondary market for affordable housing loans facilitated by Fannie Mae, Freddie Mac and others.

Housing officials and developers in the U.S. have much to gain from studying the construction, management, customer service and other practices of the Europeans. Ensuring that everyone, regardless of economic and social status, has adequate housing on a long-term basis is a practice that we in this country should adopt.

Hunter L. Johnson is CEO of LINC Housing in Long Beach, CA. LINC has developed and manages more than 4,700 affordable housing units throughout California. A version of this article appeared in the San Francisco Chronicle on January 7, 2004.

Developer Tapped for Housing Project City wants 300 apartments downtown

RECORD SEARCHLIGHT

By Scott Mobley
October 26, 2003

Redding Redevelopment Agency recently chose a Long Beach-based nonprofit developer to scope out property and size up potential plans for higher-density downtown housing.

Hundreds of Redding-area residents would live downtown if the central district offered old-fashioned yet up-to-date walkup urban apartments or townhouses, a city-commissioned survey found. The City Council in February approved the “Downtown 300,” named for the goal of building at least that many apartments in the city’s old core.

The agency chose LINC Housing Corp. over two rivals. The firm has developed some 4,200 apartments, mostly for seniors in Southern California. LINC is building 91 affordable apartments in Anderson and transforming the former Anderson Oaks complex into senior housing.

The agency has also drafted Chico-based New Urban Builders to develop loft-style apartments on a half-block along Parkview Avenue south of the Civic Center.

New Urban Builders is already on tap to build craftsman-style apartments and a 10-acre subdivision inside the Parkview neighborhood. The city is in the middle of a $20 million campaign to redevelop the neighborhood, which suffered some of the city’s worst crime and blight five years ago.

The neighborhood revitalization plan calls for buildings boasting a mixture of shops, offices and apartments along Parkview Avenue.

The agency had planned to transform the block between Akard and Leland avenues into mixed use, including the Parkview Market. But the store”s owners prefer modest spruce-ups on their property to a new building, an agency report says.

U.S. Affordable Housing Market Should Follow Europe’s Lead

THE DESERT SUN

By Hunter L. Johnson
August 2003

Maybe it’s because European culture has been around a lot longer, or perhaps the Europeans view adequate affordable housing as a right, not a privilege. Whatever the reasons, European countries have a much more positive, proactive approach to providing affordable housing for their people than we have here.

I recently had the opportunity to be part of a group of U.S. affordable housing officials to see first-hand the great strides that the Netherlands and the United Kingdom have made in providing quality affordable housing to their citizens. In both countries, affordable housing is a top public priority and local and national governments have a well-articulated housing strategy and implementation plan.

Sponsored by the Housing Partnership Network, a U.S.-based association of regional nonprofit entities active in the affordable housing field, the tour’s purpose was to gather insights and lessons that can inform strategy and vision for a more effective affordable housing policy in this country.

Unlike California and many other parts of our nation where the lack of affordable housing is a continuing crisis, in the U.K. and Netherlands low-cost housing is available to people who need it, when they need it. There are several reasons for the differences between the U.S. and these European countries when it comes to lower cost housing.

First, development of affordable housing in most of Europe is exclusively the domain of dedicated nonprofit companies. That’s all they do and they’re very good at it. A major benefit of this arrangement is that the nonprofits don’t have to compete against private for-profit developers for funding and other limited resources.

Another major point of departure is eligibility. In the U.S., a person or family living in the most affordable housing must qualify for that housing annually; in the U.K. and Netherlands, once qualified, you are qualified for life.

Financing of affordable housing projects in Europe is also much simpler. Some of the affordable projects our company has built in California required as many as six to eight separate funding sources, frequently involving federal, state, and local agencies, commercial banks and private investors. These arrangements become an enormously complex financing package that takes a long time to put together.

In the U.K. and the Netherlands, affordable housing developers have direct access to significant financial resources, and they don’t have to perform back flips for the money. It is these simplified financing programs that play a key role in making lower cost housing more plentiful in Europe than in the United States.

Seniors, families and farm workers profit from nonprofit LINC Housing’s work

AFFORDABLE HOUSING FINANCE MAGAZINE

Featured in Regional Focus section, April 2003, Volume 11, Number 4
By Christine Rombouts

A successor to an affordable housing nonprofit established by the Southern California Association of Governments in 1984, LINC Housing is the only affordable housing developer/manager in California that operates throughout the entire state. In the past 20 years it has built more than 4,000 units in 27 communities from El Centro near the Mexican border, to Anderson, near the Oregon border.

Best-known for its SEASONS™ senior housing complexes scattered throughout Southern California, LINC also has a strong presence in affordable apartments for families and in manufactured housing. Based in Long Beach, California, LINC has a portfolio that ranges from apartment complexes for farm workers in small towns to mixed-use communities for seniors in urban areas, and includes renovations of an aging hotel, a lackluster shopping center, mobile home parks, and deteriorating multi-family projects. Approximately half of its properties are rented to residents at or below 60% of area median income (AMI).

Unlike many nonprofit developers, LINC manages its properties. Many of its communities have management teams that arrange social events, assist with resident needs, provide counseling and in skills, and offer work and computer training.

According to Hunter L. Johnson, president and CEO of LINC Housing, the increasing difficulty of securing suitable sites for new housing projects, not to mention spiraling land costs, has forced LINC, along with many of its fellow affordable housing builders, to be much more creative in finding, planning and financing developments and acquisitions.

In the process, LINC has established partnerships with local governments, the for-profit development community, lenders and corporate investors to get its housing projects off the ground and completed.

One of LINC’s newest senior communities is SEASONS at Miraflores, in La Quinta. In a gated community whose first phase yielded 56 market-rate and 48 affordable single-family homes, LINC, with the city’s La Quinta Redevelopment Agency, built 118 duplex rental homes for senior citizens. The Early California-style 94 one-bedroom and 24 two-bedroom units provide single-story living, and they rent to seniors for between $413 and $604 per month.
In addition to a dedicated clubhouse and pool, the residents can share the ample open space and amenities provided to the entire community. Much of the $16.3 million funding came from the redevelopment agency, supplemented by a loan from Fannie Mae and tax credit equity sold to Lend Lease. LINC owns and manages the new rental homes.

According to La Quinta Mayor John J. Pena, “This commitment to affordable housing is being accomplished through a series of private/public partnerships utilizing a wide range of financing vehicles. The Miraflores community artfully combines affordable housing, market-rate housing and senior citizen housing in a planned community that creates a sense of place for everyone who lives here, regardless of the price of their home.”

Preserving existing inventories of affordable housing is one of LINC’s primary goals, and the company’s newest preservation project is renovation of the aging 100-unit Beechwood Manor in Lancaster, California, which it purchased for about $3 million and saved from market-rate conversion.

Grace Q. Quach, LINC’s vice president, said that $4 million renovation of the renamed The Village at Beechwood is being done with the least inconvenience for current residents — largely families with children. Residents of each 20-unit phase are being relocated to other accommodations for the eight or so weeks it will take to complete the renovation work.

Set for final completion in the fall, the one-, two-, and three-bedroom apartments range in size from 816 square feet to 1,045 square feet, with rents from $344 to $617, which represents 35% AMI.

Predevelopment and acquisition financing came from a variety of lenders — the Housing Partnership Fund, Century Housing Corporation, the Low Income Housing Fund, and the Enterprise Foundation, and construction financing was through Wells Fargo. The California Housing Finance Agency was instrumental in making this deal happen.
Kathy Weremiuk, loan officer with CalHFA, said that the way the financing worked out allowed “LINC to combine both the state Multifamily Housing Program (MHP) funds and the 4% federal tax credit funds.” These two programs together provided 80% of the permanent financing (50% came from the state MHP program funds, 30% came from federal tax credit funds and 20% came from a CalHFA loan). The total project cost was $7.6 million.

LINC can acquire and refurbish units for a total cost that is somewhere between one-half and two-thirds of the cost of developing the same complex from scratch. Construction costs and site development expenditures represent only a portion of the overall costs of a development. In many cases, the infrastructure cost (roads, water, sewer, and other public services) can add significantly to a project’s budget.

For example, the cost for Beechwood Manor, with expiring Section 236 use restrictions, is about $83,000 per unit. “If we were to have bought the land and gone through the design, entitlement, and finance processes, it could easily cost more than $140,000 per unit, defeating the affordability goal,” Johnson said.

Another type of housing that LINC has been involved with is manufactured housing. Working closely with the Torres Martinez Tribe, which owns and manages a 26,000-acre reservation around the Salton Sea, LINC is building a 300-space mobile home that will allow farm workers, who constitute a large percentage of the rural area’s population, to own their homes. This $6 million community development is being accomplished through a series of private and public partnerships utilizing a wide range of financing vehicles, and draws upon Department of Housing and Urban Development (HUD), Department of Agriculture and Riverside County funds, representing the first time USDA funds have ever been used to fund affordable housing on the West Coast, according to Johnson. The USDA loan guarantee program provides the lowest possible interest rates and the longest possible amortization.

When it is completed in spring 2004, the Torres Martinez Farmworker Village will provide new manufactured housing in an area where there is very little housing, especially affordable housing. The community will serve farm workers — who may or may not be tribal members — whose incomes are at or below 35% of AMI. Owners will determine the size of the manufactured homes, but typically the units will run between 1,500 and 1,800 square feet and have three or four bedrooms.
LINC will help with the development and management of the new mobile home park, but will train the tribe members so they can eventually take over. The park will provide Torres Martinez tribe with its own income-producing asset, which is expected to generate approximately $100,000 a year.

For its efforts in working with tribe in what is considered an innovative partnership, LINC received a “Best Practices” award from HUD.

Looking ahead, LINC’s Johnson sees the $2.1 billion housing bond money from last year’s Proposition 46 as generating extra private and federal investment, but thinks that the state’s budget crisis could pose serious problems for affordable housing.

“Being an affordable housing developer is challenging work, even in the best of times,” Johnson mused. “You learn to deal with adversity, roadblocks and jumping through hoops. We have thick skin and strong support behind us. This state needs more affordable housing, and we’re going to provide it, the current situation notwithstanding.”

Author Christine Rombouts is a free-lance writer specializing in the building industry.

Redoing the Strip

URBAN LAND

By Christine Rombouts
March 2003 issue

Converting run-down strip retail centers into new mixed-use neighborhoods, termed “suburban villages,” that could include for-sale homes, apartments, shops, entertainment and offices is a concept that is gaining greater attention in California from both local governments and the housing industry as the state seeks ways to provide more housing — especially affordable housing — to its growing population.

The critical shortage of affordable housing, along with the need to re-invent and revitalize our aging downtowns, are two important planning issues facing many cities, according to Randy Jackson, principal of the Planning Center, a Costa Mesa, California-based firm specializing in land, community, and environmental planning, and one of the speakers at a workshop titled “Converting Strip Malls into Suburban Villages,” sponsored by the California Chapter of the American Planning Association (APA) statewide conference in San Diego last October. “We have to look back to our existing suburban areas, where infrastructure systems already exist, and we need to develop infill sites, intensify housing density, and revitalize our neighborhoods,” he maintained. “We need to dedicate ourselves to reinventing our suburban communities by committing to more efficient and creative use of land.”

When successfully redeveloped, older strip shopping centers present an opportunity for communities to halt urban sprawl, reinforce community identity, and provide new housing, pointed out Melani Smith, director of governmental services for The Planning Center. “We’re adding jobs, we’re adding people, but at the same time, we’re not building enough housing,” she said. “We need a broader and more diverse selection of housing options beyond the single-family detached home in suburbia.”

A recent survey by the Public Policy Institute of California underscores the potential of mixed-use neighborhoods in urban areas as a source of new housing. According to the survey of more than 2,000 residents, which focused on land use, 47 percent of the respondents said they would prefer a mixed-use neighborhood within walking distance of such amenities as shops, theaters and restaurants. While 43 percent of the non-Hispanic respondents said they would prefer to live in a mixed-use neighborhood, 52 percent of the Hispanics said they would prefer such a neighborhood.

There are a number of other challenges associated with grayfield development. While a community should offer aesthetics, quality construction and safety, it also needs to blend in with the surrounding neighborhoods. While some re-zoning may be required, when projects are integrated with the city’s current land use plan and they accommodate residents’ needs, they are often perceived in a positive light. Mixed-use communities can be hard because there tend to be different designs for the residential and retail uses, so it is important to ensure that the designs work well together. The plans must focus on establishing a mix of residential, retail and office uses that are integrated into surrounding neighborhoods, said Cox. “Compatibility is important with this type of development.”

Securing financing can also be difficult. “You may have to use two separate lenders, one for the retail and one for the residential,” pointed out John Tillotson, president of the Pelican Center, a real estate development firm located in Huntington Beach. He added that “public financial support also is crucial. Cities must be willing to invest public dollars into these projects. You have to make the investment today for a return tomorrow.”

Just determining who owns the individual stores within a center can be an issue because there are usually many small business owners, pointed out William Anderson, vice president of Economics Research Associates, located in San Diego, California. “This is where city support is once again crucial,” he added. To overcome some of the challenges, Anderson noted that aggressive and flexible leadership is needed from the cities, together with experienced and committed developers, and supportive residents. With all of the various programs now being offered to promote redevelopment, there are new opportunities, especially if the plans call for an affordable housing component, he said. Many private companies that once focused solely on the single-family detached market are capitalizing on these opportunities, continued Anderson. They are now gaining visibility as players in grayfield development, with projects that reuse urban sites and help to revitalize once-declining neighborhoods.

Expanding the supply of affordable housing for low- and moderate-income households continues to be a major concern for many cities, according to Hunter Johnson, CEO and president of LINC Housing Corporation, a non-profit company that builds affordable housing in California. Because they stand to gain revenue-producing developments and revitalized neighborhoods, many cities fully support the trend. These cities are willing to provide critical support through a host of programs that offer incentives for redevelopment, he noted. Public agencies — especially public housing authorities — can provide access to municipal, state, and federal funds in the form of grants, tax credits, and other incentives. “Cities are also addressing the need for affordable housing by initiating marketing campaigns, assembling and writing down costs of developable sites, upgrading infrastructure and improving the regulatory process,” said Johnson. Others are experimenting with educating real estate agents, tweaking tax increment financing approaches, and mounting pilot projects, he added.
Many of these public programs operate as part of larger, ongoing housing and neighborhood conservation programs, such as the traditional assistance programs funded by community development block grants and federal- and state-assisted housing programs, including U.S. Department of Housing and Urban Development initiatives. City housing programs have also taken full advantage of low-income tax credits to attract private market housing investments, and Fannie Mae and Freddie Mac, along with other lending institutions, also are playing a significant role.

Grayfield development requires a commitment to networking and forming partnerships. By its very nature, redevelopment must be a cooperative process in which developers, local governments, regulatory agencies, architects and planners, businesses, and residents work together on all aspects of the project. To get these projects off the drawing table, private companies need to actively pursue partnerships with numerous groups, including the city, county, state, water district, school district, and environmental agency.

At the stage when land is being acquired, urban development requires a fresh approach to cost-benefit analysis, said David Voss, co-founder and principal of CitiSphere, a Dana Point, California-based firm that specializes in locating urban development sites for builders. CitiSphere principals are pursuing development opportunities through the normal acquisition processes such as broker referrals and landowner offerings, but they’re also establishing alliances with cities, counties, redevelopment agencies and other companies that allow them to network for opportunities. “We have to be much more creative,” said Voss. “We’re establishing alliances with companies and individuals that allow us to pursue opportunities.”

Affordable housing developments, working on much tighter cost margins than market-rate, higher-end developments, are particularly sensitive to off-site infrastructure improvement costs, maintained Johnson. In many of its developments, LINC works closely with cities to fund some of these improvement costs to preserve affordability and contribute to the quality of life of the surrounding community, he added. SEASONS at Ontario Gateway Plaza, in Ontario, California, is an example of a shopping center that was converted into a mixed-use community through a public/private partnership. Developed by LINC Housing, the project, which replaces a 40-year-old dilapidated shopping center, combines retail and residential uses in a large-scale urban redevelopment plan in this older suburban city of 146,000 located in the city’s designated redevelopment area. The revitalized property includes 80 units of affordable housing for seniors and 153,000 square feet of retail shopping space.
The network of partnerships and the financing structure to convert shopping centers into mixed-use communities can be intricate. For example, with SEASONS at Ontario, construction financing for the residential component of nearly $3.17 million was provided by Bank of America Community Development Bank with long-term financing through credit-enhanced tax-exempt bonds of $2.3 million; Edison Capital Housing purchased $2.1 million low-income Housing Tax Credits. Overall, the combined project cost approximately $24 million, including $5 million in redevelopment funds, of which $1.5 million was for the commercial side and $3.5 million for the residential. The city purchased the land and leased it to LINC Housing and also made a loan to be repaid by residual receipts from cash flow.

The residential component is an 80-unit one- and two-bedroom apartment community located through the “gateway” at the shopping center. The affordable apartments are home to active seniors (55 years and above) whose incomes are at or below 50% and 60% of the average yearly income for San Bernardino County.

The coming years will be challenging as California’s real estate developers and builders look for new ways to house people, build businesses, accommodate traffic and protect the state’s environment. Focusing their creative energies and resources on transforming marginal shopping centers into vibrant suburban villages could be one solutions.

Christine Rombouts is Costa Mesa, California-based freelance writer specializing in the residential and commercial building industries.

Affordable Housing in New Markets: Creative solutions working within well-established cities.

BUILDER AND DEVELOPER MAGAZINE

“Building Trends” Feature Story
October 2002

The lack of affordable housing in California has achieved an all-time high. As we all know, the availability of quality housing is critical to the health of the economy. In some high-cost cities, many middle-class citizens — police officers, teachers, firefighters, and nurses — cannot find affordable rental housing, much less buy a condominium or a home.

The financing and intensive management associated with this type of housing may require more planning and entail greater risk than market rate projects. Private builders and developers handle these problems by collaborating with public and nonprofit partners and pursuing creative financing methods. The result has been the production of a number of successful affordable housing communities.

Strong Incentives
Many of these communities incorporate quality design, marketing, and professional management and maintenance. Generally, private companies produce affordable housing for the same reasons they produce any other kind of housing — it is a product that generates profits. There are some firms, though, that choose to build affordable housing as a way to reinvest in their own communities and meet the housing needs of this segment of society.

Since they stand to gain revenue-producing developments and revitalized neighborhoods, many cities fully support the trend.

LINC
One program addressing the need for affordable housing on a regional basis is LINC, for Limited Income Communities. LINC is the outgrowth of the Corporate Fund for Housing, formed by the Southern California Association of Governments in 1984, and serves as a nonprofit corporation dedicated to building and preserving affordable housing throughout California.

Since its formation, LINC has entered into a series of development partnerships, both public and private, to build and preserve affordable housing communities through acquisition and rehabilitation of expiring Sections 8 and 236 units, as well as new construction, historic preservation, and purchase of manufactured home parks.

A collaboration of public agencies with non-profit development entities such as LINC, provides access to federal grants and foundation support through nonprofit entities that are committed to affordable housing and community development. Public agencies — especially public housing authorities — can also provide access to municipal, state or federal funds in the form of grants, tax credits and other incentives.
Working with groups such as LINC, many cities are addressing the need for affordable housing by initiating marketing campaigns, assembling and writing down costs of developable sites, upgrading infrastructure and improving the regulatory process. Others are experimenting with educating real estate agents, tweaking tax increment financing approaches, and implementing pilot projects.

Many of these public programs operate as part of a larger, ongoing housing and neighborhood conservation programs such as the traditional assistance programs funded by community development block grants and federal and state assisted housing programs. These include initiatives of the U.S. Department of Housing and Urban Development, or HUD. City housing programs have also taken full advantage of low-income tax credits and historic preservation tax credits to attract private market housing investments. Fannie Mae and Freddie Mac, along with other lending institutions, play a significant role in providing affordable housing.

SEASONS™
SEASONS at Ontario Gateway Plaza and SEASONS at the Hoover in Whittier are examples of mixed-use development involving public and private partnerships.

SEASONS at the Hoover in Whittier, California, has rehabilitated the historic uptown Whittier corridor with 50 units of affordable senior housing.

SEASONS at Ontario Gateway Plaza blends retail and residential in a large-scale urban redevelopment plan, located the redevelopment district of Ontario, California, an older suburban city of 146,000. The revitalized property now includes 80 units of affordable housing for seniors and 153,000 square feet of retail shopping space. The center replaced a 40-year-old dilapidated shopping center with a new, vibrant multi-use community.

Due diligence is extremely important when developing a community like the SEASONS, especially to ensure that the retail component is compatible with the residential. One challenge was that construction of both the commercial and the residential components of the project had to take place while the few businesses remained operational.
The network of partnerships and the financing structure to create affordable housing can be intricate. For example, with SEASONS at Ontario, construction financing for the residential component of $3,165,000 was provided by Bank of America Community Development Bank with long-term financing through credit-enhanced tax-exempt bonds of $2,325,000; Edison Capital Housing purchased $2,090,000 Low-income Housing Tax Credits. Overall, the combined project cost approximately $24 million, including $5 million in redevelopment funds, of which $1.5 million was for the commercial side and $3.5 million for the residential side. The city purchased the land and leased it to LINC Housing and also made a loan to be repaid by residual receipts from cash flow.

All pieces must be in place
One of the first requirements for building affordable housing is purchasing large sites at a reasonable price. Particularly in the early stages of neighborhood reinvestment, builders need land at prices that offset the construction costs and risks associated with building affordable housing.

There are plenty of sites in city neighborhoods containing abandoned buildings and vacant lots that may be ideal for this type of development, however some of these sites may be encumbered by legal problems like tax delinquency.

Whether building new housing or refurbishing Here are a few key lessons to consider when building affordable housing:

Vision
This may be the most important factor. The ability to envision and communicate the completed project will help with overcoming obstacles and working with local citizens, politicians, government officials and other groups to build the type of community that will provide a wide range of long-term benefits.

Secure partnerships
Affordable housing development must by its very nature be a cooperative process in which developers, local governments, regulatory agencies, architects, planners, businesses and residents work together on everything from formulating a vision to gaining the necessary approvals. To get these projects off the drawing table, builders must actively pursue partnerships with numerous stakeholders, including the city, county, state, water district, school district, and environmental agency.

Promote benefits
It’s important to create awareness of the benefits these projects can bring to communities. Gaining support may require educating the public, private business and government about the positive impacts on community building, planning, design and architecture.

Seasons at Ontario Gateway Plaza

CALIFORNIA REDEVELOPMENT JOURNAL

Feature of the month, October 2002, Number 259

Thanks to all of the various programs now being offered to promote affordable housing in California, there are many redevelopment opportunities for exciting and profitable affordable housing projects. These projects are gaining visibility as models of affordable housing. More private companies are developing attention-drawing projects by reusing urban sites, adapting architecturally interesting old buildings and revitalizing once-declining neighborhoods.

Expanding the supply of affordable housing for low- and moderate-income households continues to be a major concern for many cities, which is why they are more willing to provide critical support for building new housing and rehabilitating old housing. It’s a chance to gain revenue-producing developments and revitalized neighborhoods.

Like most redevelopment projects, the layers of financing and intensive management require more planning and entail greater risk, but public/private collaborations that pursue creative financing methods, not to mention quality design, marketing, management and maintenance, have produced a number of successful affordable housing projects.

SEASONS™ at Ontario Gateway Plaza — a recent “Award of Excellence” winner from the California Redevelopment Association — is the successful collaboration of several entities to build a great community. SEASONS is an example of mixed-use redevelopment involving a public and private partnership that blends retail and residential in a large-scale urban redevelopment plan. The revitalized property now includes 80 units of affordable housing for seniors and 153,000 square feet of retail shopping space. The new center replaced a 40-year-old dilapidated shopping center with a new, vibrant multi-use community. The project was developed by Madison Development and LINC Housing, a nonprofit agency dedicated to building and preserving affordable housing throughout California. They collaborated on design for this site to build a cohesive community with LINC developing and owning the residential portion, and Madison developing and owning the commercial portion. This shared vision was then extended to local residents and merchants, government officials and planners in the surrounding vicinity, and financiers.

The SEASONS is located in Ontario, an older suburban city of 146,000. It is located in the city’s designated redevelopment area and its undertaking required a complex financing structure. Construction financing for the residential component of $3,165,000 was provided by Bank of America Community Development Bank with long-term financing through credit-enhanced tax-exempt bonds of $2,325,000; Edison Capital Housing purchased $2,090,000 Low-income Housing Tax Credits. Overall, the combined project cost approximately $24 million, including $5 million in redevelopment funds, of which $1.5 million was for the commercial side and $3.5 million for the residential side. The City purchased the land and leased it to LINC Housing and also made a loan to be repaid by residual receipts from cash flow.
Originally built in the 1950s, the center had become unattractive with only 30 percent occupancy by 1995. It was unable to compete with local, more modern retail centers. The nearly empty shopping center was part of a deteriorating Mountain Avenue commercial corridor that had just been designated as a redevelopment area. As the very first undertaking for this new area, the City of Ontario, along with the private commercial developer and LINC Housing, took on the challenge to resuscitate Ontario Plaza and at the same time, provide much needed affordable housing for seniors.

The residential component is an 80-unit complex of one- and two-bedroom apartments located through the “gateway” at the shopping center. The affordable apartments are home to active seniors 55 years of age and above whose incomes are at or below 60% of the average yearly income for San Bernardino County. The two-story California mission style apartment buildings are clustered on the northeast side of the property with attractive landscaping and carports. The decorative exterior brickwork on the backs of the commercial buildings, and wrought iron fencing with gated entrances provide privacy for residents. The residential community is connected to the shopping center by a “gateway,” allowing the residents walk-through access to the shops and services as well as friendly door-to-door deliveries by center’s merchants. The architects designed the property’s street facade to be a part of the surrounding neighborhood, rather than turning its back on the neighborhood. Entry doors for each unit are within the gates, while each apartment has a patio or balcony that overlooks the street. This connects the residents with the larger neighborhood and provides a sense of community.

The rapid lease-up confirms the strong demand for this type of housing. Due to the property’s high visibility and targeted marketing efforts through local churches, social service providers and senior centers, all of the apartments at SEASONS at Ontario Gateway Plaza were rented immediately after opening. Many of the residents are long-time Ontario residents, who were happy to be able to stay within the community, close to friends and family and yet remain independent as they “downsize” their residence and give up their cars. The close proximity to shopping, services and medical care make this community an ideal location. The rents are $ 410 to $597 a month, two thirds of the current market rate. The one- or two-bedroom units range from 529 square feet to 730 square feet. The project includes a variety of amenities and services for seniors, including a central clubhouse for community activities.
SEASONS at Ontario Gateway Plaza is managed by LINC Housing’s own Community Housing Management Services, whose staff is on-site to support residents, maintain facilities and manage operations.

LINC Housing is a nonprofit agency that builds and preserves affordable housing throughout California. LINC preserves affordable housing in several markets, including, urban core and inner cities, high-priced suburbs and rural communities. Approximately 50% of LINC’s total holdings are rented to residents at or below 60% of their Area Median Income. LINC is an acronym for Limited Income Communities and is the outgrowth of the Corporate Fund for Housing formed by the Southern California Association of Governments (SCAG) in 1984 to address the need for affordable housing on a regional basis. Since its formation, LINC has entered into a series of development partnerships, both public and private, to build and preserve affordable housing communities through acquisition and rehabilitation of expiring Sections 8 and 236 units, as well as new construction, historic preservation, and purchase of manufactured home parks. All together, LINC has developed over 4,000 units in 27 communities across the state of California.

Collaboration with public agencies and nonprofit development organizations such as LINC, provides access to federal grants and foundation support through nonprofit entities that are usually mission driven and committed to affordable housing and community development. Public agencies — especially public housing authorities — can also provide access to municipal, state or federal funds in the form of grants, tax credits and other incentives. Working with groups such as LINC, many cities are addressing the need for affordable housing by initiating marketing campaigns, assembling and writing down costs of developable sites, upgrading infrastructure and improving the regulatory process. Others are experimenting with educating real estate agents, tweaking tax increment financing approaches, and mounting pilot projects. Many of these public programs operate as part of a larger, ongoing housing and neighborhood conservation programs such as the traditional assistance programs funded by community development block grants and federal and state assisted housing programs. These include initiatives of the U.S. Department of Housing and Urban Development (HUD). City housing programs have also taken full advantage of low-income tax credits and historic preservation tax credits to attract private market housing investments. Fannie Mae and Freddie Mac, along with other lending institutions, also play a significant role in providing affordable housing.

Here are a few key lessons from the SEASONS project to consider when building affordable housing.
Due Diligence — This is extremely important when developing a community like the SEASONS, especially ensuring that the retail component is compatible with the residential. With SEASONS, it was particularly complicated because of the fact that building both the commercial and the residential components of the project had to take place while the few viable businesses still operated.

Vision — The project required the ability to see beyond obstacles and work with local citizens, private companies, politicians and government officials from other municipalities, and other groups to build the type of community that will provide a wide range of long-term benefits.

Make partnerships — Redevelopment must by its very nature be a cooperative process in which local governments, regulatory agencies, developers, architects and planners, businesses and residents work together on everything from formulating a vision to gaining the necessary approvals.

Show benefits — It’s important to create awareness about the benefits these projects can bring to communities. Gaining support may require educating the public and private business about the impacts the project will have on community building, planning, design and architecture. This is when outreach programs such as community meetings and site tours can be held to keep interested parties informed on the project’s progress and collect their input.

Locating sites — One of the first requirements for building affordable housing is obtaining sites large enough and priced low enough to be feasibly developed. Particularly in the early stages of neighborhood reinvestment, redevelopers need land at prices that offset the construction costs and risks associated with building affordable housing.

Design — Affordable housing requires careful attention to design. The project should offer aesthetics, quality construction and safety. All designs should be attractive to the market. Affordable housing should blend in with the surrounding neighborhoods. Compatibility is always important with redevelopment projects. While some re-zoning may be required, when projects are integrated with the city’s current land use plan and they accommodate residents’ needs, they are often perceived as good things. Mixed-use communities can be tricky because two architects may be needed, one for the residential component and one for the retail, and so it is important to ensure the designs work well together.

By Hunter Johnson
President and CEO, LINC Housing

Seasons at the Hoover

NATIONAL TRUST HISTORIC PRESERVATION

National Trust Historic Preservation

Seasons at the Hoover adapted the historic but run-down Hoover Hotel in Whittier, California, into a 50 housing units for low-income seniors. Vista Communities and LINC Housing created this $7 million project with the strong financial support of the City of Whittier and Los Angeles County.

Background:
A Whittier businessman opened the Hoover Hotel in 1929 to spur development in the city’s Uptown business district. Its 100 rooms and elegant ballroom became the “in spot” for travelers and locals alike in this community, 15 miles southeast of Los Angeles.

However, like many downtowns, the area around the Hoover declined after World War II. Local retailers struggled to compete with the large freeway-oriented malls, and Uptown deteriorated physically and economically, particularly after an earthquake in 1987. The Hoover became a single-room occupancy hotel home that attracted indigents, and its ballroom became a bar and pool hall. The Hotel was not only an eyesore, but also a major impediment to investment in the central business district.

Project Description:
The rebirth of the Hoover Hotel was tied closely to Whittier officials’ search for ways to improve conditions for low-income and elderly residents. After the development team purchased the building in 1999, it approached the City with a proposal for affordable senior housing and asked for assistance. The City eagerly supported plans for rehabilitation and provided financial help. Construction began in August of 2000 and faced a number of challenges. Project managers had to combine nine funding sources, including both public and private dollars. Though money was limited, they wanted to preserve the beauty of the building, update mechanical, plumbing, and electrical systems, adapt the floor plan from single hotel rooms to functional apartment spaces, and install modern fire and life-safety systems.

The final design met all these demands. After the renovation uncovered hand-glazed but damaged terra cotta tiles in the entry foyer, a ceramic artist duplicated the tiles in order to preserve this important first impression of the building. The project adjusted apartment sizes to the spacing of the steel casement exterior windows, which were originally based on the original 100 rooms of the hotel. Because of the needs of older residents, bathrooms are larger and more accessible, as is the elevator.
Results:

The project helped create other benefits for Uptown Whittier. A small retail store was created next to the hotel’s main entrance and has been leased to a neighborhood-serving retailer. The area has enjoyed tens of millions of dollars of public and private investment over the past decade, and its upgraded retail shops and professional services include banks, hair salons, apparel shops, a bakery, medical offices, a movie theater, groceries, restaurants and churches.

The success of Seasons at the Hoover is illustrated by its awards. It was recognized by the Whittier Historic Preservation Society and by the Building Industry Association, which selected it as the best seniors housing of 2001. The National Association of Home Builders awarded the project the Gold Medal Best of Seniors Housing in February, 2002 and also presented it the Jurors’ Award for Innovation.

FINANCING:
Acquisition
$825,000 loan from Century Housing Corporation.

Equity
Low-Income Housing Tax Credit: $3,916,484
Historic Rehab Tax Credit: $847,516

Debt
Mortgage: $750,000 (Washington Mutual Bank)
City HOME funds for two loans of $494,000 and $845,000
Industry Funds Loan (Los Angeles County only): $670,000
FHLB AHP loan: $218,000

Other
This project benefited in the early stages by two pre-development loans and a deferred development fee prior to securing a $1 million construction loan from Washington Mutual Bank.
Total Cost of Project: $7,741,000

Number of Housing Units Created: 50 units for low-income seniors

Date of Original Construction: 1929

Project Completed: June 2001

Project sponsor/developer(s):
LINC Housing Corporation
110 Pine Avenue, #525
Long Beach, CA 90802
562/435-2124

Vista Communities, Inc.
19800 MacArthur Blvd., Suite 750
Irvine, CA 92612
949/474-1345

Seniors Celebrate Changing Seasons: New complex marks grand opening today

RECORD SEARCHLIGHT

By Kimberly Bolander
January 13, 2004

ANDERSON Six years ago, 20 percent of the calls to Anderson police stemmed from these apartments a menacing haven of drug dealing, violence and harassment of elderly neighbors. Today, when the former Anderson Oaks Apartments celebrate a grand reopening, low-income seniors will be the guests of honor.

The reincarnated housing complex, Seasons at Los Robles, rose from the Anderson Oaks’ ashes after a coalition of 75 law enforcement officers raided the apartments in February 2000, Anderson Police Chief Neil Purcell said. “We got that place totally closed down, evacuated, and there will never again be another Anderson Oaks Apartments,” he said Monday. In its place, a nonprofit agency called the LINC Housing Corp. made major renovations, tore down a few decrepit buildings, and created what Purcell called “first-class senior apartments.” “It’s had a positive impact on our community and people are very up. Anderson’s moving ahead,” he said.

Most of the 58 units have been leased and residents have moved in, LINC President and CEO Hunter Johnson said Monday. “The grand opening is to celebrate those folks being there,” he said. Many apartments in the former complex, built in 1977, had been “red-tagged” in 2000 for extremely dangerous living conditions. Shortly thereafter, the remaining units were emptied, the property boarded up and a bank holding a mortgage initiated foreclosure proceedings. After the Anderson Redevelopment Agency acquired the property, it selected LINC as the developer.

Rehabilitation began in 2002, with the first residents moving into Seasons at Los Robles in April. Rents range from $367 to $536 for Seasons’ 14 one-bedroom and 45 two-bedroom units. The complex includes a community room. LINC, which owns and operates 19 senior communities in California, will provide free wellness classes, financial planning, computer training, counseling, movies, bingo and other services and entertainment.

At 3:30 p.m. today, Seasons residents, city officials and affordable housing leaders will participate in a dedication, followed by a barbecue. The new atmosphere starkly contrasts the neighborhood’s past, when elderly neighbors feared for their safety, Purcell said. “They were afraid to go out after 7 o’clock at night. They had their porch lights broken time after time,” he said. The former apartment residents’ reputation for selling methamphetamine, especially, drew drug buyers from as far as Fresno, Reno, the coast and Klamath Falls, Ore., Purcell said.

In 1999, 20 percent of the police department’s calls stemmed from violence, domestic abuse, drug trafficking and other disruptions there, he said. Purcell remembers witnessing drug deals in the open at the apartments. Nearby residents told him horror stories about how no one would buy their homes because of the proximity to the infamous Anderson Oaks. The city has seen a marked change since those days. “We don’t have the tweakers that were so recognizably walking around our streets and in our markets. I’m not saying that meth has been eradicated from our city,” he said, “but we have a cleaner town.”

Sale of Dicker’s Cuts Loose Anchor Holding Down Mall

RECORD SEARCHLIGHT

Record Searchlight
April 6, 2005

The deal hangs on a six-month escrow to study the potential hang-ups of rebuilding old urban properties, but the expected sale of the Dicker’s building in downtown Redding heralds real progress for the mall.

The 60,000-square-foot one-time anchor of the The Mall in downtown Redding closed in 1992, and having the prime mall tenant’s building sit mostly empty has weighed down the area’s retail fortunes ever since.

LINC Housing Corp., the nonprofit developer buying the former department store, has a record of reviving properties that have fallen on hard times. Locally, LINC has built Seasons at Los Robles, a senior housing complex whose first phase opens this month in Anderson on the site of the once crime-ridden Anderson Oaks apartments.

Farther afield geographically but more on point, LINC won an award in 2002 for rehabbing an old shopping complex in Ontario, in San Bernardino County. The California Redevelopment Association described the site as an “aging, nearly-empty shopping center … part of a deteriorating commercial corridor” that “was retaining only 30 percent occupancy and was unable to compete with the more modern retail centers.” Sound familiar?

In the old shopping center’s place rose a complex of 80 apartments and 153,000 square feet of retail space, all of which has been close to fully occupied since the redevelopment.

With the LINC project and Shasta College’s new downtown building — the vacant lot on Tehama Street doesn’t exactly shout progress today, but the gears are turning — the two former anchor stores will both be reconstructed and put to new use. Throw in the investments of a handful of entrepreneurs who spot an opportunity in the making, and they add up to the biggest thing to happen to the downtown mall, well, since the city built it in the 1970s.

The roof over downtown’s core seemed visionary at the time, but the vision of its being removed can’t come a minute too soon.

Affordable housing part of American dream

THE DESERT SUN

By Diane Wedner, Times Staff Writer
June 4, 2006

More people. Prices stuck in the stratosphere. Vanishing open land.
These and other factors give the housing crunch new bite.

If Southern California’s housing market of the last six years were a hit song, owners who have seen their homes double in value would be humming “We’re in the Money.” But for countless others who can’t afford to buy or to pay rising rents, the flip side of the record would be “Desperado.”

Despite political strides — Los Angeles last fall fully funded for the first time a $100-million affordable-housing trust �� and the construction of new homes in all price ranges, the region’s persistent housing crisis has only gotten worse, experts say. Record-high home prices, unflagging demand, population growth, lack of developable land, sky-high land and building costs and government regulations have exacerbated the situation.

“The problems that were signaled in 2000 are cemented now,” said Henry Cisneros, chairman of the housing development firm CityView and former secretary of the U.S. Department of Housing and Urban Development. “It’s built into the DNA of California, and we’re getting farther behind every day.”

Middle-income residents have been particularly hard-hit by high prices and a limited housing supply. The failure of cities to invest enough money in housing and the lack of smart-growth planning have compounded the problem, said Los Angeles Mayor Antonio Villaraigosa.

“We’ve had a diaspora of the middle class from our city,” Villaraigosa said. “We’ve got the infrastructure, and we must provide the housing to grow our economy and support our middle class.”

Only 12% of households in Los Angeles County, for example, can afford a median-priced home, according to the California Assn. of Realtors’ most recent statistics, compared with about 38% in the summer of 2000.

Considering the record run-up in prices, it’s no wonder. The median price for a home in Southern California in April 2000 was $201,000, compared with $485,000 in April 2006. In Los Angeles County, the median price rose from $195,000 to $508,000; in Orange County, from $262,000 to $628,000, according to DataQuick Information Systems, a La Jolla-based research firm.

The situation probably will not change anytime soon. In the last 62 years, there has been only one significant downturn in home prices, and that was between 1990 and 1996 — amid an exodus of defense-industry jobs — suggesting that a sustained decline is rare, said Michael Carney, finance and real estate professor at Cal Poly Pomona.

The main culprit behind the latest price hike is the unrelenting demand for limited housing, a problem fueled by record-low mortgage-interest rates, adjustable-rate financing and a population stampede into Southern California that shows no sign of slowing.

From April 2000 to July 2005, California gained 1.56 million people through natural increase — the difference between births and deaths — and 1.42 million from international immigration, according to U.S. census statistics. Domestically, more residents left California than moved here from other states. Southern California’s population is approaching 17 million people and growing at a rate of 200,000 to 300,000 per year.

Meanwhile, developable land in the Southland continues to shrink. And residential projects slated for urban areas on old industrial and commercial sites — which could add significantly to the region’s housing stock — often take years to get underway.
In Orange County, where land costs $1 million to $2 million per acre and the need is particularly acute, 7,206 permits for homes and apartments were issued in 2005, compared with 12,400 in 2000, according to statistics from the Construction Industry Research Board.

One of the few Southland counties with significant developable land �� Riverside County — issued a bounty of 34,000 permits for new homes and apartments last year, compared with 15,400 in 2000. But that number still falls far short of the need, housing experts say.

And then there are the spiraling land and construction costs.

“We used to think that $10,000 to $15,000 per unit for just dirt in Rancho Cucamonga and Ontario was a lot of money,” said Hunter Johnson, president of LINC Housing Corp., a Long Beach nonprofit that builds, renovates and preserves affordable homes. “Today, in many of these same Inland Empire neighborhoods, the cost for land can range from $35,000 to $50,000 per unit.”

Getting permits is difficult with not-in-my-backyard sentiment and government regulations that often are redundant, builders say. Also, fees required by local governments for schools, sewers and other infrastructure in new communities have doubled to between $50,000 and $70,000 per unit since 2002, said Randy Jackson, president of the Planning Center, a private urban-design firm in Costa Mesa.

Contributing to the shortage of moderately priced “workforce housing” are builders’ preference to construct more profitable “luxury” homes and buyer demand for upscale housing, industry analysts say.

In downtown areas, where major efforts are underway to increase high-density housing, many builders are converting historic buildings — which often housed apartments — into high-end condos, further eroding the low- to moderate-price housing inventory.

The bright spots

Builders are eager to point out that the picture is not all bleak, however, and that, in fact, strides have been made to provide housing at all price levels. Compared with the 72,000 total new housing units permitted in seven Southern California counties in 2000, there were 106,400 new homes approved in 2005, according to the research board.

And building high-density urban housing on land previously used for other purposes has caught on.
“I’ve seen a shift from a small niche segment of our industry doing infill to the point now where most builders — certainly the majors — have included this type of building in their business models,” said Rich Ambros, chief executive of the Building Industry Assn. of Southern California. “In the years to come, you’ll see a greater supply of workforce housing.”

Squeezing more houses onto smaller acreage is widely acknowledged among urban planners, academics and a growing number of city officials and builders as a solution to housing California’s booming population. The Wilshire Corridor, Hollywood, downtown Los Angeles, Anaheim, Fullerton and Inland Empire cities such as Ontario and Fontana now have high-density developments either built or going up, with jobs and public transportation close by.

That’s great for some, but for other buyers and renters, it’s still a Herculean struggle to live within their means and maintain a reasonable quality of life in Southern California.

Tim Morrison, a 45-year-old executive at a construction-financing company, has commuted 50 miles each way from Glendora — on three trains and a bus — to his Northridge job each day for eight years. His wife, Edwina, 49, a nursing communications technician at Cedars-Sinai Medical Center in Los Angeles, has commuted for 12 years. It was worth it, Tim said, to provide a larger home and good schools for their kids, who now are out of the house.

Tim had a Thomas Edison moment last year when he saw an advertisement for new Standard Pacific condos about to go up across the street from Union Station. Morrison knew he had to get one. The day the sales office opened in March, he and Edwina were among the first to purchase. They bought a $586,000, two-bedroom condo with a view at Axis at Union Station, which they expect to move into this month.

“For us, moving downtown near transportation was a no-brainer,” Tim said. “As soon as I saw the sign for these condos, I knew it was what we were looking for.”

Bentley Hodges and his wife, Catherine, both 28, thought they knew what they were getting into house-wise when Bentley accepted an investment-banking job in the west San Fernando Valley 2 1/2 years ago.

After selling their three-bedroom, 2,000-square-foot home in Minneapolis for $270,000, they felt sure they could find a Los Angeles home for $350,000. That optimism quickly turned to despair after the couple looked at “junky, 800-square-foot homes” in the West Valley, Bentley said. They finally found a two-bedroom “major fixer” in West Los Angeles for $580,000.

Bentley said he has endured a dawn-to-dusk commuting schedule so that he and Catherine, a physical therapist, can live in a decent house they can afford (barely). He leaves home for his office at 7 a.m. and returns after 6:30 p.m., when traffic eases.

But a recent move by a co-worker has gotten Bentley to thinking. His colleague transferred to Plano, Texas, and used the profits from the sale of his home here to purchase with cash a five-bedroom, five-bathroom house for $400,000.

“We like L.A., but you get more value for your dollar out of state,” he said. “I’m not sure where the future will lead us.”

Generation Y Us?

The Hodgeses, who were able to use home equity to buy, are the lucky ones. As baby boomers’ children — the bulging demographic dubbed Generation Y — think about entering the market, the inability to findhouses they can afford has pushed home-buying far into the future for some.

Taylor Stephens, 25, and boyfriend Nicholas Barger, 23, live in a cozy Hollywood apartment that rents for $1,500 a month. The couple spends about 50% of their monthly income on rent.
Stephens said that although she will graduate from Cal State Northridge without student debts, her salary as an educator won’t be sufficient for her to buy a home for at least 10 years.

“It feels way out of reach to have a home in any of Los Angeles’ hot spots, where I would prefer to buy,” said Stephens, a master’s student and teaching assistant at a Lawndale school. “I’d rather move to another city [outside of Southern California] that’s more affordable and have a home than move far out of town here.”

Gen-Y buyers who can afford a mortgage typically buy for investment purposes, said Tom Kunz, president and chief executive of Century 21.

The bulk of them purchase condos and prefer living close to their jobs, usually in urban areas. Their parents often provide part or all of their down payments, agents say.

Hard as it is for higher-earning young adults to buy a Southland home, low-income residents face far greater challenges.

Workers with poor credit who live paycheck to paycheck are struggling to find rental housing that does not eat up more than 50% of their incomes. However, experts claim that the number of multiple families living in a single unit is fewer than half a decade ago. According to U.S. census data, more than 60% of Los Angeles residents are renters.

Despite the significant inroads by Southern California builders dedicated to constructing and rehabilitating affordable housing, cities still struggle to keep up with the demand because of the loss of federally subsidized housing units.

“You must be very mission-driven to provide affordable housing, because the Section 8 [federally subsidized] requirements are tough,” said Johnson, of LINC Housing Corp. Most landlords, he added, “don’t want the bother.”

There is hope on the horizon.

Mayors and city council members who used to view housing as a no-win situation politically have begun to press for permanent sources of affordable-housing funding, and some have helped streamline the process for high-density urban building.

In Orange County, Anaheim Mayor Curt Pringle’s support paved the way for approval of the Platinum Triangle, an 840-acre mixed-use development surrounding Angel Stadium and the Arrowhead Pond, with a potential 9,500 residential units. The first phase is scheduled to open this month.

L.A. Mayor Villaraigosa has proposed a $1-billion bond to provide funds for affordable housing. The mayor also announced in March that the city would spend nearly $51 million this year to increase the supply of affordable housing.

Gov. Arnold Schwarzenegger recently signed the $2.85-billion Strategic Growth Plan housing bond, which will provide homeownership and rental opportunities to more than 34,000 Californians.

Among additional measures being considered to help solve Southern California’s housing crisis are further recycling of industrial and commercial sites for residential use; inclusionary zoning, which would require developers to include some below-market units in new developments; more mixed-income development; and protecting the existing supply of rental housing.

Will there still be talk about a housing crisis at the end of this decade?

“I hope not,” Villaraigosa said. “I do know this: The best way to avoid that discussion is to do something about it now.”

Foundation Awards $100,000 Grant for Construction of Home for Seniors, Developmentally Disabled

MULTI-HOUSING NEWS

By Kelly Sheehan, Online News Editor

Compton, Calif. – October 03, 2006 — The California Community Foundation has awarded LINC Housing Corp., a Long Beach, Calif.-based nonprofit development company, with a $100,000 grant that will help build the Seasons at Compton, an 80-unit affordable rental community here for seniors and developmentally disabled seniors and adults.

“These individuals were traditionally getting housing that was 100 percent only for people like them. It was more institutional and it was isolating,” Hunter L. Johnson, president and CEO of LINC, told MHN. “There’s a big effort to get these individuals into the mainstream population and make them feel like they’re part of society.”

LINC hopes to begin construction on the $24-million project in the fall of 2007, Johnson said. Designed by Nardi Associates LLP, a Monrovia, Calif.-based architecture firm, the complex will consist of mostly two-bedroom units. Rents will depend upon residents’ income and will likely range from $343 to $722 per month. Over a third of the development will be allocated for developmentally disabled seniors or seniors living with a developmentally disabled son or daughter.

With the help of the grant, LINC has hired a social service expert with experience in developing facilities and programs for developmentally disabled adults. “This grant has allowed us to bring in a true specialist who will not only help us develop the facilities necessary for our special-needs residents, but, even more importantly, we want to ensure that the programs and services we provide enable the residents to live independently and successfully for as long as possible,” Johnson said.

To further address the needs of its residents, Seasons at Compton, located on S. Frailey Avenue and Alondra Boulevard, will feature wheelchair-accessible passageways, ramps, elevators, as well as low sinks and light switches. “The facilities and services we aim to provide will enhance the quality of life for all of the community’s residents,” Johnson said. “And we also hope to see friendships form between the various populations, creating a cohesive, caring and supportive environment for everyone.”

There is a “tremendous need” for affordable housing in the area, Johnson said. The South Central Los Angeles, Frank D. Lanterman, Eastern Los Angeles, Westside and Harbor regional centers, which all facilitate state funding and services for the area’s special needs community, will provide support to the Seasons at Compton.

Karen Ingram, director of community services for the Frank D. Lanterman Regional Center, said local residents living on supplemental security income receive less than $950 per month. They rely on the U.S. Department of Housing and Urban Development (HUD) and other subsidized housing in order to live independently, she said. “The true value of Seasons at Compton is that it’s providing desperately needed affordable housing for seniors and people with developmental disabilities,” Ingram said.

Prime Partners: The Housing Partnership Networks

Afterschool program taps childrens’ artistic spirits

THE DESERT SUN

By Nelsy Rodriguez
February 13, 2007

Water spilled from the top of the double-layer fountain, soaking colorful, tiled flowers that a group of children placed there as if they were decorating a cake.

They laughed as they reached through spurts of water, dropping more petaled pieces in the spray much like dropping pennies into a fountain. They smiled as the colors of the stained clay mingled with other tiles to create art. Cemented along the base of the fountain are more floral tiles in vibrant shades. And along the edge where a neighbor of Las Flores Apartments in Coachella might stop to dip a finger, lay even more tiles.

“It’s gonna be prettier,” said 9-year-old Sonia Gallardo, her black, glossy hair and pink-glittered skin shimmering in the sun. “You can see it as a wave of flowers.”

A group of 24 kids, who live at the Avenue 51 complex, met during the fall of 2006 to create cement tiles of flowers through an Indio S.C.R.A.P. Gallery and LINC Cares Housing after-school program.

Artist and project coordinator, Jennifer Johnson, lead the kids through floral and faunal exploration, discussing the desert’s unique species, and guided them as they created hundreds of flower-like tiles in a myriad of varieties. No two flowers looked alike: tiles were made to resemble a shell, a sunny-side-up egg, an Aztec calendar, a cookie-cutter and a starfish.

“It’s so great,” Johnson said, as the kids picked through their creations. “We could have an arts center in the Coachella Valley the likes of which no one has seen if we just harnessed the power of these kids.”

Fountain decorated by kids to be dedicated today

THE DESERT SUN

Local briefs for Saturday, March 17, 2007
Staff reports

COACHELLA — Mayor Eduardo Garcia and Councilman Richard Macknicki are scheduled to attend a fountain dedication this morning at Las Flores Apartments in Coachella.
Twenty-four kids who live in the apartment complex and participated in an Indio S.C.R.A.P Gallery program in which they created colorful clay flowers transformed the plain base of the fountain into a vibrant work of art. The flower fountain project was a joint program by the Indio S.C.R.A.P. Gallery and LINC Housing Corporation.

SHS Tackles Affordable Housing Project in State Capital

MULTI-HOUSING NEWS

By Kelly Sheehan, Online News Editor

Sacramento, Calif. – March 22, 2007 — In a partnership with nonprofit organization LINC Housing Corp., Simpson Housing Solutions LLC (SHS), based in Long Beach, Calif., has begun construction on North Avenue Apartments, an affordable housing community in the Del Paseo Heights neighborhood of Sacramento, Calif.

Michael Costa, president of SHS, told MHN that the project, which consists of apartments and two-story townhouses on a once-vacant five-acre lot, broke ground in January 2006 and is slated for completion in May. It has been designed by Maple Dell + McClelland. The community features a “classic California” contemporary style, with tile roofs, stucco exteriors and wood trim and accents.

Located at 999 North Ave., the $17-million complex will offer 80 two- and three-bedroom units. Apartments will range from $313 to $865 per month. All units will be set aside for households earning from 30 to 60 percent of the area median income for Sacramento County, as published by the U.S. Department of Housing and Urban Development (HUD).

Financing includes an allocation of $10.2 million in federal Low Income Housing Tax Credits (LIHTC), $525,000 from the Sacramento Housing Redevelopment agency, and a $10.9-million construction loan from Wells Fargo Bank.

According to Costa, Sacramento struggles with a shortage of high-quality housing that is affordable for working families. These apartments will feature central heating and air conditioning, cable TV hook-ups, patios or balconies, carpeting and vinyl floors.

“SHS builds nothing but affordable family and senior apartments, utilizing tax credit financing, so you could say that the inspiration stemmed, as with all our projects, from the growing need for more affordable housing, not only in Sacramento, but in cities across America,” Costa told MHN. “We hope and expect that adding high-quality affordable housing will help contribute to an overall revitalization of what has become a blighted area, with a mix of working-class residential and light commercial areas.”

Amenities at North Avenue Apartments will include a multipurpose room, pool, spa, outdoor recreation areas with basketball courts, computer center with Internet access, fitness center and laundry rooms. Once the project is completed, residents will be offered a variety of on-site services, such as educational classes, computer training, after-school tutoring, and health and wellness programs. The site is also located near schools, recreational facilities, shopping, public transportation and the Del Paseo Heights public library.

Anderson’s Seasons at Los Robles Has Made a Difference: Small City Redevelopment Agencies Can Accomplish Big Things!

REDEVELOPMENT

By Dana Shiglry, Executive Director, Anderson Redevelopment Agency
and Assistant City Manager
May 2007

Without much money or staffing, even a small city can turn a little creativity and a lot of hard work into a remarkable redevelopment project, as the Anderson Redevelopment Agency has demonstrated with the Seasons at Los Robles Senior Apartments Project.

Built in 1977 in the anderson downtown core area, the Anderson Oaks Apartments fell into disrepair during the 1990’s. The city assisted the owners with repairs and encouraged their investment using CDBG rental rehabilitation funds. However, the condition of the buildings worsened, living conditions deteriorated, and the number of police responses to drug related and other incidents at the complex escalated. As the situation worsened, the blighted buildings served as a disincentive for investment in neighboring properties, and property values declined.

The years of crime and neglect reached a peak in February 2000 when a multi-jurisdictional team of drug enforcement officers raided the site, arresting 21 suspects and taking 10 children into protective custody. Shortly afterward the City’s Building Official, accompanied by representatives from Shasta County Child Protective Services and Environmental Health, conducted an inspection of the apartment complex, issued the property owner an abatement notice, and red tag all vacant units.

Meanwhile, the property owner had stopped making mortgage payments and the bank holding the note initiated foreclosure proceedings on the property. Within a short time, the remaining units were vacated and the property was boarded up and abandoned.

In July 2000, the Agency formed its Southwest Project Area to respond to blighted conditions in the City’s downtown area largely resulting from the decline of the local timber industry. The new project area had no cash to invest in the Anderson Oaks Apartments, but the Agency Board nevertheless initiated discussions with the bank to acquire the property. After considerable negotiations, the Redevelopment Agency acquired the property in August 2001 by providing a promissory note in the amount of $1,050,000.

The City of Anderson, with a population of only 10,000 people and fewer than 60 city employees, had no housing or redevelopment staff, had no tax increment revenue in its treasury, and had no experience with low-income housing developers. Nonetheless, the Agency — as the new owner of a dilapidated, boarded up, downtown apartment complex — embarked on a rehabilitation project that was essential to revitalizing the downtown and meeting the goals of the project area.

LINC Unveils $43M PepperWood Complex

GLOBEST.COM

By Bob Howard
August 20, 2007

RANCHO CUCAMONGA, CA — LINC Housing Corp. of Long Beach has unveiled its $43 million PepperWood Apartments complex, a 230-unit property at 9055 Foothill Blvd. that the company has retrofitted for improved for energy efficiency while completing a host of other upgrades. LINC, which is a nonprofit developer of affordable housing for families and seniors throughout California, worked with the city of Rancho Cucamonga to buy the PepperWood complex in 2006.

Through the acquisition, LINC made previously market-rate apartments affordable to limited-income residents who were at risk of being priced out of their neighborhoods during the city’s new wave of prosperity. The complex features units ranging from studios to two-bedroom apartments that range from 487 sf to 975 sf, all of them set aside for families earning from 35% to 60% of the area median income for San Bernardino County, or about $321 to $732 per month depending on household income.

The renovations include new paint, insulation, electrical and plumbing systems, energy-efficient water heaters, new heating and cooling systems, new appliances, double-paned windows, doors and weather stripping, CFL lighting, low-flow toilets and hard-wired smoke detectors. The renovation also included the addition of an all-new computer lab for residents.

Hunter L. Johnson, LINC Housing president and CEO, notes that LINC’s acquisition and renovation of the PepperWood complex were a response to growth in Rancho Cucamonga, which has caused property values and rents to rise rapidly. “Rents in the city have increased more than 32% since 2001, forcing people out of the area,” Johnson observes.

Funding for the PepperWood acquisition and renovation came from a number of sources including Century Housing, Citibank, tax exempt bonds with Housing Partnership Securities, tax credit equity from Enterprise Community Investments, and a loan from the Rancho Cucamonga Redevelopment Agency. In addition to renovating he complex, LINC has instituted its LINC Cares resident services program at PepperWood.

Through the LINC services program, the company has conducted a series of credit management workshops to teach residents about credit, finance, banking and how to protect themselves from identity theft. Upcoming resident services programs include a first-time homebuyer program, health care programs, tutoring program for the property’s children and homelessness prevention workshops.

Copyright © 2007 ALM Properties, Inc. All rights reserved.
Reprinted with permission.

City Approves Proposal For Youth Transition Home

GAZETTES TOWN-NEWS

By Shereen Oca
June 10, 2009

A proposal to transform an abandoned building into a center that helps youth transition out of foster care received support from City Council last week.

At its June 2 meeting, the City Council unanimously approved the conversion of the former Palace Hotel in central Long Beach to a foster youth transition home, which will be run by Los Angeles-based nonprofit United Friends of the Children (UFC) and developed by the LINC Housing Corporation.

Fourth District Councilman Patrick O’Donnell said he became aware of the issue about 15 years ago after watching a Public Broadcasting Service documentary that detailed the struggle youth undergo after being emancipated from, or aging out of, the foster-care system.

“It’s a fact that not all youth at the age of 18 are ready to support themselves, and the statistics bear that out,” O’Donnell said.

“…You don’t hear a lot about this issue. So, this is an effort to address the challenge of youth who are unceremoniously released from the foster-care system.”

According to UFC President Polly Williams, national statistics indicate that approximately half of former foster youth encounter homelessness and/or chronic unemployment within two years of leaving care, and roughly 1,400 to 1,500 youth in Los Angeles County are emancipated from the system every year.

Through its Pathways Transitional Living Program, UFC tries to decrease those statistics by providing young adults between the ages of 18 and 24 an affordable place to stay, where they can gain the necessary skills to live independently. The program UFC will set up at the rehabilitated Palace Hotel will be similar in nature, Williams said.

Participants will be required to work and pay rent, in addition to attending weekly life-skills classes as well as regular meetings with their advocacy counselors.

“What we are really giving young people is a chance to live in a stable environment and have a family experience to prepare them to go out on their own,” Williams explained. “It’s through a long-term, stable relationship with an adult who cares, that foster youth can overcome the barriers and experiences they faced to go on for independent living.”

The average length of stay at the yet-to-be-named transition center will be approximately 18 months. The renovation plan for the Palace Hotel, which is owned by the Long Beach Housing Development Company, is to turn it into 14 studio apartments.

According to O’Donnell, there isn’t similar housing currently available for transitional youth in Long Beach.

“It’s a strong model based on case management,” O’Donnell said. “There’s reciprocal accountability built into their model… The idea is to secure a bridge to the future. It’s not a handout, but a hand-up.”

At the new transition home, a resident manager will live onsite to oversee youth. Williams said participants are taught the importance of being a good neighbor and having respect for their community.

“The work of UFC is relationship-based, which we view as the cornerstone of our work with youth,” she continued. “It is the reason we are able to achieve such outstanding outcomes.”

According to Williams, 85% of Pathways Program alumni live in permanent housing and 78% are employed.

The estimated development cost of the project is $5.8 million, with a projected completion in the summer of 2011.

UFC, and most likely its work at the Palace Hotel, is financially supported by individuals, private foundations, corporations and public grants and contracts, Williams said.

For more information about United Friends of the Children, visit www.unitedfriends.org.

Copyright © 2009 Gazettes Town-News
Reprinted with permission.

Slew of affordable housing in works

SANTA MONICA DAILY PRESS

By Melody Hanatani
May 02, 2009

BROADWAY — An old nursing home that’s been put out of commission sits quietly on a corner here, mostly shielded from the public’s eye through a chain-link fence that’s covered in a green mesh canvas.

Some might view the former facility as an eyesore, with boarded up windows and outdated white awnings, but the corner of 26th Street and Broadway will someday be home to one of 11 new affordable housing projects that are expected to come online in the city within the next few years.

The projects together involve about 286 units, roughly 115 of which will be constructed through new developments and with the remaining being directly impacted through various rehabilitation projects of existing apartments that have been acquired over the past year by Community Corporation of Santa Monica.

The majority of the projects will receive some sort of financing from City Hall and the Redevelopment Agency, which in 2008 negotiated a line of credit up to $75 million with Bank of America to accelerate such development, helping city officials realize goals of preserving and increasing the local affordable housing stock in an area with a high cost of living.

“I think most Santa Monicans share the goal of maintaining our diversity and affordable housing goes a long way toward doing that,” Mayor Ken Genser said. “We have a very active program of assisting with financing of affordable housing projects and each one of these makes it possible for more families, more individuals and families to live in safe and decent housing in a wonderful community.”

More than half of the projects involve rehabilitation of properties recently purchased by CCSM, the largest local developer of affordable housing that just recently celebrated the grand opening of 47 new family units at Berkeley Place.

The rehab developments will be located at 1513 Centinela Ave., 750-752 Marine St., 844 Lincoln Blvd., 1438 25th St., 914 Fourth St., and 2029-2031 20th St.

They range in cost from $3.1 million to $6.4 million for rehabilitation and site acquisition, the most expensive being a 16-unit apartment building at 914 Fourth St., which will receive a new roof, windows, and electrical and plumbing upgrades. The units for the rehabbed buildings will be available for prospective tenants whose income eligibility is at or below 80 percent of area median income, which is about $62,000 for a family of four, while the rents will range from $628 to $897 a month.

The projects will give a preference to local residents and workers.
Joan Ling, the executive director of CCSM, said the rehab projects represent a shift in focus for the nonprofit developer away from new construction toward purchasing and sprucing up old buildings that are more easily purchasable in the current economy.

“We buy these buildings and a lot of them have a fair amount of deferred maintenance and we fix them up and then it’s good for another 50 years,” Ling said.

She said the projects come with a lot of green measures, including zeroscape landscaping and solar panels.

“We buy them to fix them up as part of sustainability efforts,” she said.

All rehabbed units will be completed over the next year. The developer is allowing all tenants who lived in the buildings prior to acquisition to remain.

The 11 projects, which include improvements to the city-owned Mountain View Mobile Home Park and a 20-unit senior housing development currently under construction at 14th Street and Broadway, are distributed throughout the city, with only a few clusters east of Cloverfield Boulevard where there are about five planned.

“We do try to spread our acquisitions across all the multi-family neighborhoods in the city,” Ling said. “If you look at all the addresses, we have accomplished that.”

About 95 large family units will be created through three new developments with CCSM. The total development cost for the projects, which are located at 2802 Pico Blvd., 2602 Broadway and 430 Pico, have yet to be determined but they received a combined $18.4 million loan through City Hall for site acquisition. The income eligibility will be targeted toward low and very-low income households.

Kate Vernez, the assistant to the city manager for government relations, said the line of credit with Bank of America was well timed in advance of the tightening of the credit market.

“The current loans are for affordable housing throughout the city, which reflects our commitment to geographic diversity within the city,” she said.

City Hall is also currently working on a loan for locally-based F.A.M.E. Redevelopment.

A couple of the projects are well underway, including a series of improvements at the Mountain View Mobile Home Park on Stewart Street. The park, which was built in the late 1940s, consists of 105 residential mobile home spaces spread over about 5 acres. City Hall purchased the park and about 36 mobile home units in December 2000 as part of a settlement with the previous owner to keep the location for affordable housing, a 2008 staff report stated.
The project includes various infrastructure improvements, including new electrical power lines, water and drain pipes and the installation of natural gas lines. Nearly all of the units at the park are currently serviced with propane.

About 78 of the units are occupied.

“The idea is to complete the infrastructure improvements and then look at a longer-term vision of any kind of renewal or replacement of some units because some out there are travel trailers,” Jim Kemper, the housing administrator with City Hall, said. “We’re not sure if they were intended for occupancy.”

Construction, which is about halfway complete, is estimated to cost more than $6 million.

MacFarlane CostaHousing Partners and LINC Housing are currently building affordable units for senior citizens at 1458 14th St. The units will be targeted for low-income seniors. The estimated $11 million project is scheduled to be completed at the end of this year.

Ling said that the round of rehab projects is CCSM’s first concerted effort toward greening its older buildings. Many of its newer developments were constructed with sustainability in mind.

“If you look at new construction, in any given year we may be building enough housing to replace 1 percent of the existing housing stock,” she said. “If you only focus on doing sustainable projects for new construction, it would take 100 years to make all the units sustainable.”

Copyright ©2009 Santa Monica Daily Press
Reprinted with permission.

Around the World

ORANGE COUNTY BUSINESS JOURNAL

Orange County Business Journal Staff
Compiled by Kelly Ryan and Paul Hughes
March 23, 2009

ALISO VIEJO
Liberty Senior Associates LP has an application in the works to build 164 senior housing units. Plans call for one- and two-bedroom units in three- and four-story buildings, plus a 1,400-square-foot recreation center and a pool. Part of the project includes a 14,000-square-foot, two-story adult rehabilitation center and senior services center occupied by South County Senior Services Inc. The nonprofit will offer bus transportation to and from both facilities. The senior housing project has not yet been scheduled for public hearings before the Planning Commission or the City Council. Applicant Bunyan & Associates says it hopes to keep the project moving, but there is no word yet on a projected completion date.

TUSTIN
County employees soon will be moving into the Social Services Family Campus at Tustin Legacy, with construction done by June. The campus’ buildings include youth group homes, facilities for mothers and children, a duplex for transitional family housing and a building for early childhood development and medical care. Buildings total just more than 61,600 square feet. The architects were Patrick Sullivan Associates of Claremont and Alexander + Hibbs AIA Inc. of Anaheim. Patrick Sullivan was the main architect. Alexander + Hibbs did designs, drawings, specs and field support. The design amenities include a landscaped courtyard. The construction manager is the Orange office of Aecom Technology Corp. Los Angeles-based Woodcliff Corp. was the general contractor. The county says the facility helps it meet state mandates laid out in Assembly Bill 636, a statewide child welfare system improvement effort.

SAN JUAN CAPISTRANO
An affordable senior apartment complex is nearing completion at the corner of Ortega Highway and Rancho Viejo Road. SEASONS II is a venture of MacFarlane Costa Housing Partners in Gardena and LINC Housing Corp. in Long Beach. The two worked together on SEASONS, a 1996 senior complex that sits adjacent to the latest project. The apartments will share amenities with the larger, existing senior apartments including a pool, spa and recreation and barbecue areas. The complex will have 38 one- and two-bedroom units. The total cost of the development is $14.4 million. Construction began last year and should be finished by October. Nonprofit LINC Housing has other properties in Buena Park, La Palma and Santa Ana.

ORANGE
The city plans to widen the Tustin Street and Chapman Avenue intersection near the Costa Mesa (55) Freeway to improve traffic. Still in its early stages, the project will include an added eastbound lane and an eastbound-to-southbound dedicated right turn lane on Chapman Avenue. It also will include a northbound-to-eastbound dedicated right turn lane on Tustin and bus turnouts for both streets. The project may require full acquisition of an existing medical office building and a Valero gas station. Orange is doing an appraisal report first, and it may take six months to decide whether to acquire the land. The project will start in late 2010 or early 2011, with completion 150 days from then.

STANTON
The city is getting a renovated Orange County Sheriff station near Katella Avenue and Beach Boulevard. The building originally was occupied by the Stanton Police Department in 1971 but has never been updated or remodeled. Demolition and reconstruction of the inside are currently in progress. Work is expected to be completed as soon as August. The station had an unused jail facility that will be converted into locker rooms. The cost of updating the 8,000-square-foot station is $2 million. The new facility will have an emergency operations center to handle potential terror attacks and natural disasters. The layout includes office space for investigators, briefing rooms, interrogation rooms and an armory for weapons.

If you’re a developer or city planner and would like to see a project featured in Around the County, please contact Kelly Ryan at ryan@ocbj.com or (949) 833-8373. The column covers projects in Orange County’s cities and unincorporated areas, and some projects in Corona. Commercial, housing and retail projects are the focus of the column. Some larger public works projects also are included.

Copyright ©2009 Orange County Business Journal Associates
Reprinted with permission.

Panel OKs plan for post-foster home

LONG BEACH PRESS-TELEGRAM

By Greg Mellen, Staff Writer
February 19, 2009

LONG BEACH — The Planning Commission on Thursday heartily and unanimously endorsed a plan to convert a dilapidated and deserted hotel into the city’s first housing unit for youth coming out of the state’s foster care program.

Under an adaptive reuse plan, the 1929-built Palace Hotel will be converted into apartments for 18- to 24-year-old adults or so-called “transitional youth.”

The facility, currently owned by the Long Beach Housing Development Company, will rent units for up to 18 months to youths, while also offering counseling, job training and other services to help them become established.

Allison Riley, of LINC Housing, which is in partnership with LBHDC on the project, said that of the 1,200 youths released from foster care each year in Los Angeles County, a staggering 50 percent are at risk of becoming homeless.

At the present, there is no housing assistance program for these youths in Long Beach.

Jack Smith, a local activist and filmmaker who has documented the plight of the young adult homeless, said the project is vital.

Smith said many of the young adults who are “emancipated” from foster care are in reality “kicked out and have no place to go, no family support, no support at all.”

Youths in the program are required to either work or go to school full time and must pay rent and learn to manage their living expenses.

“This is a homeless population that has hope,” Smith said. “This is a group that’s nothing but potential.”

The facility will comprise 13 studio units, a manager’s apartment, common areas and offices to help provide services to the residents.

There is empty retail space on the first floor and Riley said her group hopes to find a business, like an Internet cafe, that can employ some of the residents.

As a hotel, the Palace had a checkered past and was a magnet for drug users and prostitutes. In 1999, a judge ordered installation of high-voltage lights and security cameras and the hiring of a a guard to reduce crime in and around the building.

Because the building is now a historic landmark, it can bypass zoning regulations because of adaptive reuse.

The historical significance is not architectural, according to historian Stan Poe, who calls the style “brick commercial,” and certainly not art deco as some claim. However, Poe says the building has other attributes that warrant landmark status.

“It represents a cultural resource,” Poe said. “It was built for the oil workers to stay, so it represents a building type that has mostly been torn down.”

Neighborhood leaders in the area are delighted that the dilapidated hotel may get a face-lift and be put to good use.

“We’re so supportive I can’t even see straight,” said Jan Ward, president of the West Eastside Community Association. “We think it’s a pretty good deal.”

In other Planning Commission news, the board unanimously rejected an appeal by Larry Goodhue to stop the weekly farmers’ market at a parking lot at Marine Stadium.

In fact, the board praised the market held Wednesdays from 2 to 7 p.m.

“Anything that brings fresh produce and healthy food to an area and provides a venue where people can meet should be supported,” said commissioner Donita Van Horik.

Copyright ©2009 Long Beach Press-Telegram
Reprinted with permission.

Affordable housing complex made green

THE PRESS-ENTERPRISE

By Gail Wesson
January 16, 2009

With financial help from the city of San Jacinto’s Redevelopment Agency, an apartment complex has been renovated with energy efficient features that should help residents save on utility bills.

The $1.8 million in agency funds helps the city meet legal requirements to provide affordable housing. City officials and Long Beach-based nonprofit LINC Housing Corp. celebrated the renovation Friday at the Terracina Apartments on Santa Fe Avenue.

The grant “assisted LINC in their ability to purchase the project and to help them with some of their rehabilitation costs,” Steven Pasarow, city redevelopment manger, said by phone.

The two-story complex was built about 15 years ago, using tax exempt bonds that required rents to stay affordable for 15 years, then rents could move to market rates. The redevelopment assistance includes a condition to keep rents affordable for 69 years, Pasarow said, likely the life of the complex.

LINC acquired the complex in June 2008. Tax exempt bonds, tax credit equity and a state housing loan helped cover the $6.9 million acquisition and renovation cost, LINC said in a news release.

The complex has 55 two- and three-bedroom units and a manager’s unit. Another unit was converted into a community center.

Energy saving features include insulation, solar power for outdoor lights, energy efficient water heaters and appliances, and double-paned windows. Calculations done for the project show an expected 25 percent improvement in energy efficiency, LINC project manager Allison Riley said by phone.

The units are for those earning 50 to 60 percent of Riverside County’s median income. For example, a family of four could earn up to $39,960. Rents are $443 to $725 a month. All units are rented.

Copyright �� The Press-Enterprise

California Developer Improves Energy Efficiency by More than 25% with Building Rehab

MULTI-HOUSING NEWS

By Lisa Iannucci, Green Building Correspondent
October 24, 2008

San Jacinto, Calif. — LINC Housing Corp., a Long Beach, Calif.-based nonprofit developer of affordable housing for families and seniors, recently acquired the Terracina Apartments in San Jacinto, Calif. The 55-unit complex, originally built in 1992, is undergoing improvements that include general maintenance as well as several green upgrades and renovations.

The energy-efficient renovations include cool-roof radiant shingles, additional insulation, energy-efficient water heaters, heating and cooling systems, exhaust fans and appliances, double-paned windows; CFL lighting, and weatherstripping.

“LINC Housing is proud to add Terracina Apartments to our portfolio of affordable communities,” says Hunter L. Johnson, LINC Housing president and CEO. “We’re looking forward to completing the renovations which will bring the property up to date as well as save the residents money with the increases in energy efficiency.”

Additional renovations include repair and replacement of patio fencing with recycled materials and site improvements for greater handicap accessibility. The new community center features a computer lab, a sitting area with a big screen television, and a full kitchen.

Terracina, located at 1825 South Santa Fe Ave. in San Jacinto, features two and three-bedroom apartment homes ranging from 1001 to 1102 sq. ft. All units are for families earning from 50 to 60 percent of the area median income (AMI) for Riverside County, as established by the US Department of Housing and Urban Development (HUD). Rents range from $443 to $725 per month depending on household income.

The rehab budget for Terracina is $1.5M and LINC is using a tax-exempt bond for the construction financing through Bank of America. The overall project was also financed with Low Income Housing Tax Credit Equity, Redevelopment Agency of San Jacinto, and the California Department of Housing and Community Development. The total cost for acquisition and renovation was approximately $6.9 million.

Copyright © 2008 Nielsen Business Media
Reprinted with permission.

National Housing Conference Member of the Month

NHC.ORG

NHC.org
September 2008

Why did you join NHC?
NHC provides a great resource for knowledge about current housing programs and legislative policy. LINC’s board and staff have been provided with tools to increase their effectiveness through programming, active participation on the NHC board, and peer learning.

How does membership in the NHC help your organization achieve its mission?
Membership allows our board and staff to keep abreast of key industry concerns and leverage our voice with our colleagues to participate in making policy changes. Our participation has facilitated in-person meetings with key legislators, allowing us to put a real face on the issue of the need for affordable housing and the real people doing the critical work to provide it.

What role does your organization play in ensuring that affordable housing is available?
LINC builds, preserves, owns and manages its affordable housing. LINC is a good steward of California’s affordable housing stock and communities. Not only does LINC build energy-efficient systems into their pipeline of more than 1,400 units, but they are actively implementing their sustainability plan to improve all 36 existing properties in their portfolio. They are committed to providing healthy homes for their residents with LINC Cares resident services programming that provides an opportunity for families and seniors.

LINC’s board and staff take an active role in reaching out to the community at-large to educate and advocate for affordable housing. In addition to NHC, LINC plays a leadership role in both the Housing Partnership Network and California Housing Consortium. These active organizations enhance LINC’s own communications outreach which includes their award-winning “Notes from the Housing Studio” podcast, active placement of positive articles in the public media, a “Speakers Bureau” program that reaches out to local service clubs and organizations, and LINC’s schedule of small and large events.

What are the greatest issues facing the creation and preservation of affordable housing today?
Money: Access to capital for affordable housing has always been tough for nonprofits. In today’s financial market, it is even tougher.

Visibility: Housing is one of our state’s and nation’s most critical needs, and lack of quality shelter impacts virtually every other facet of our citizens’ lives. How is it that housing is rarely discussed as a key issue in the legislature, media, and our homes?

According to LINC, becoming part of a unified voice in such organizations as NHC has allowed them to call greater attention to the need for affordable housing, as well as leverage LINC’s experience and concerns with their colleagues to hold ground and make some financial gains in this difficult economy.

Reprinted with permission.

Tour through Seasons II lets board members and bank lenders see development.

LONG BEACH PRESS-TELEGRAM

By Samantha Gonzaga, Staff Writer
June 26, 2008

LAKEWOOD — The breakfast conversations were memorable and personal and the residents who got visits from more than two dozen strangers were polite.

The visits were to Seasons II, an affordable senior apartment community of 85 units at 21309 Bloomfield Ave., which was the first stop of a bus tour by Long Beach-based LINC Housing Corp. LINC is a nonprofit founded in 1984 by the Southern California Association of Governments that provides affordable housing to seniors and families.
“The real point of the tour is to show stakeholders what we do,” said Hunter Johnson, LINC Housing CEO. “So many of us do this from an office some place.”

Elissa Tedesco/LINC Housing Corp.
Seasons II residents mingled with bank lenders, granters and LINC board members, some of whom have not had the chance to visit the properties that LINC has developed.
The tour’s other stops were at City Gardens in Santa Ana, home to 274 families; and Dorado Senior Apartments in Buena Park, a 150-unit affordable senior housing building.

LINC so far has converted and developed nearly 40 properties, amounting to about 4,000 living units, Johnson said.

“It’s very hard to find land, it’s very hard to find reasonable prices, because people talk about ‘this low-cost housing’ but you look at this,” Johnson gestured at the understated but elegant landscaped mini-community of Seasons II “and it doesn’t look like (low-cost housing).”

Seasons II was financed with low-income tax credits and bond money, he adding, “The art of building affordable housing is layering the financing, not the architecture.”

“We think it’s important to know who we serve,” said Nina Dooley, vice president of corporate development and communications.

Before visiting two units, the group was introduced to LINC’s assortment of resident services that include tutoring, senior nutrition, financial literacy and exercise programs.

Some 400 volunteers give their time to LINC residents, last month clocking in 300 hours, said Maria Marquez, director of resident services.

“Everybody loves being here,” said Torrance Councilman and three-year LINC board member Paul Nowatka of the responses he’s heard from residents. “It’s really emotional, actually, because you see so many people happy and you feel what you are doing is good.”

Copyright © Long Beach Press-Telegram
Reprinted with permission.

Old Flophouse Gets New Image, Role

LONG BEACH PRESS-TELEGRAM

By Karen Robes, Staff Writer
May 22, 2008

Kent Davis has joined Long Beach based LINC, a nonprofit developer of affordable housing for families and seniors in California, as senior vice president and chief operating officer. In the newly created position, Davis will oversee property acquisition, housing development, asset management, resident services, finance and operations. “LINC has its sights set on some aggressive growth plans during the coming months, and Kent will play an important role as we move forward,” LINC President and CEO Hunter L. Johnson said in a prepared statement. Prior to joining LINC, Davis was an investment banking officer at Newman & Associates.

Copyright Long Beach Business Journal

LINC Names New Senior Vice President, Chief Operating Officer

LONG BEACH BUSINESS JOURNAL

Section Article appears on: Real Estate & Development
Long Beach Business Journal
April 29 – May 12, 2008

Kent Davis has joined Long Beach based LINC, a nonprofit developer of affordable housing for families and seniors in California, as senior vice president and chief operating officer. In the newly created position, Davis will oversee property acquisition, housing development, asset management, resident services, finance and operations. “LINC has its sights set on some aggressive growth plans during the coming months, and Kent will play an important role as we move forward,” LINC President and CEO Hunter L. Johnson said in a prepared statement. Prior to joining LINC, Davis was an investment banking officer at Newman & Associates.

Copyright Long Beach Business Journal

Tour touts work on young-adults home

PRESS-TELEGRAM

By Greg Mellen, Staff Writer
February 17, 2011

Old hotel to offer path to independence for those out of foster care.
LONG BEACH – The old drywall has been taken down, the interior framing is going up, historically appropriate brickwork has been installed and bit by bit the old Palace Hotel is being restored for its new tenants.

Where once the Palace was a home to despair for those on a downward spiral, it is now envisioned as a center of hope for those climbing up.

On Thursday, about 20 board members, staffers and partners of LINC Housing took a hard-hat tour of the $6.2 million project that will become a home for at-risk transitional (ages 18 to 24) adults leaving the state’s foster care system.

Renovations began in June and the first new residents are scheduled to move in in August.

The effort has not been without its hiccups. Alison Riley, project manager, said there was erosion under the building requiring a new slab be poured and footings replaced. Finding matches for the 1929 brickwork was also a challenge, and the December rains caused problems, but Riley said the project remains on time and budget.

When completed, the old hotel will have 14 units with LEED Gold Certification, in part for its energy efficiency, including photovoltaic panels and fuel-cell technology on the roof.

In addition to housing, the youths will receive social, educational, mental health, job training and life-skills services, run by the nonprofit United Friends of the Children.

The hope is to have a social enterprise business on the ground floor retail space.

The Long Beach Housing Development Co., which bought the vacated building in 2005, is contributing about half of the cost of the renovations. Long Beach-based LINC Housing is the nonprofit developer.

The Palace Hotel will be the city’s first housing unit for youth coming out of foster care.

According to officials, of the 1,400 to 1,500 youths who leave foster care each year in Los Angeles County, a staggering half of them face homelessness or chronic unemployment within two years.

Residents at the Palace Hotel will pay rent and stay there for about 18 months as they prepare to become independent.

After their tour of the Palace Hotel, the LINC group traveled to Compton and Redondo Beach where two more of its projects are located.

Copyright © 2011 Press-Telegram
Reprinted with permission.

Demise of redevelopment may spell end to affordable housing

WHITTIER DAILY NEWS

By Mike Sprague, Staff Writer
January 22, 2011

For years, the 81-year-old Hoover Hotel in Uptown was considered an eyesore. But by 2001, thanks in part to redevelopment funding, the six-story stucco building had been fixed up and converted into an apartment complex serving low-income seniors.

But projects like this may be a thing of the past if Gov. Jerry Brown’s proposal to eliminate redevelopment agencies is approved, say city officials and housing advocates.
“Redevelopment sets aside 20 percent (of its revenue) for affordable housing,” said Whittier Councilman Owen Newcomer. “I don’t know how you create affordable housing without that.”

“Those dollars are general purpose revenue,” said H.D. Palmer, spokesman for the state Department of Finance. “It would be at their discretion if they wanted to use a portion of that for low-income housing.”

But Paul Zimmerman, executive director of the Southern California Association of Non-Profit Housing, said Brown’s proposal would take away $1 billion statewide now earmarked for affordable housing.

The end result won’t be good, Zimmerman predicted. “It’s going to be meaner and uglier,” he said.
“Southern California already is the homeless capital for the United States,” he said. “You can figure that homelessness will increase because there will be fewer and fewer units for them.”

That also will mean higher rents in general as the supply is reduced, he said.

Assemblyman Chris Norby, a longtime critic of redevelopment, disagrees.

“Housing has become more affordable in the last couple of years due to market forces,” said Norby, R-Fullerton. “The amount of redevelopment housing is a tiny fraction of all the housing built in this state and so it’ll have no impact.”

Norby said the choice is between spending money on housing and shopping centers or fudging public education.

“Housing is important but food is important too,” he said. “Government doesn’t run farms. That’s a responsibility of the marketplace.”

But Hunter Johnson, president and chief executive officer of LINC Housing of Long Beach that rehabilitated the Hoover Hotel, said most affordable housing needs subsidies.

“The reality is that it doesn’t cost any less to build the homes we build,” Johnson said.

“We don’t put granite countertops on… but there’s a basic cost in lumber, for plumbers and carpenters,” Johnson said.

The end result is a cost that many people can’t afford, he said. You reduce the selling or rental costs with subsidies — mostly from redevelopment agencies, he said.

It isn’t just redevelopment dollars that provide the subsidies, but these are usually leveraged to bring in money from other sources, including county, state, federal and private dollars, Zimmerman said.

“If you take away the local dollars, there is no way to bring in those other dollars,” he said. “So you’re losing not only the $1 billion in redevelopment money but something approaching $4 billion to $6 billion in leveraged funds.”

But many redevelopment agencies have large, unspent amounts of money in their housing funds, according to Brown’s budget proposal.

Officials from local cities say they have been building new affordable housing.

“In the city of Pasadena, we’ve developed about 1,200 units of affordable housing units in the last 20 years or so,” said William Huang, its housing director.

“We have another 200 units in the pipeline,” Huang said. “If (redevelopment) dollars go away it will be almost impossible to develop new affordable housing projects.”

Pasadena gets about $3 million annually in property tax that must be used for housing.

West Covina has two programs in which it provides home improvement loans to low-income residents, said Chris Chung, its director of community development.

It also has assisted with construction of some low-income senior citizen projects, including the 85-unit West Covina Senior Villa, Chung said.

In that case, the city put up $5.25 million for the $7.6 million project, he said.

The $8.6 million West Covina Senior Villas 2 also is under construction and the city used about $4.35 million in redevelopment money, he said.

In Alhambra, city officials are working on a 10-unit affordable housing project. But without redevelopment dollars, it wouldn’t happen, said City Manager Julio Fuentes.

“Who’s going to be responsible in the future for affordable housing because we’ll be out of business?” Fuentes asked.

The state legislative analyst’s office agrees on this issue.

“The administration’s plan does not address many related issues, such as clarifying the future financial responsibility for low- and moderate-income housing (currently, a redevelopment program),” stated its report on the budget released last week.

City officials also criticize the idea of shifting money to housing authorities because many don’t have such an agency.

“That may mean money would go to the Los Angeles County Housing Authority,” La Mirada City Manager Tom Robinson said. “Does La Mirada money then go to the other side of the county?”

Copyright © 2011 Whittier Daily News
Reprinted with permission.

San Diego residents celebrate improved digs

SAN DIEGO UNION TRIBUNE

By Nathan Max
January 19, 2011

LINCOLN PARK – Residents of an affordable housing complex in Lincoln Park celebrated the completion of a $5.5 million renovation project Wednesday afternoon.

The Arbor Village Apartments, a 112-unit complex in the 4900 block of Logan Avenue, has been re-landscaped and 41 of its units were expanded. The rehabilitation projected started in 2010 after the LINC Housing Corporation purchased the property for $24 million two years earlier.

“When we got here, the landscaping was in a shambles,” said William Ellison, 28, who moved into a one-bedroom apartment with his girlfriend and her son in September.

“Now, everything looks nice. It feels really comfortable. Everybody I tell where I live, they say it’s a dangerous, unsafe and ugly area. But it’s not that way at all.”

The renovation, which was partially funded with stimulus money from the American Recovery and Reinvestment Act, included environmentally sensitive features such as low-flow faucets and toilets, dual-pane windows and energy star appliances. Forty-one two-bedroom apartments were expanded to three bedrooms.

“I grew up right up the street, so I know this community very well,” City Council President Tony Young said. “This is a very important piece of redevelopment.”

There is also a brand-new community center, and that will help get a new after-school program off the ground. The Verizon Foundation gave a $24,900 grant that should fund the program for one year.

“It’s mindful of the story of the ugly duckling turning into a beautiful swan,” said Gary Gramling, chairman of the San Diego Housing Commission Board of Commissioners. “This community, which looked so different a year ago, has been reborn.”

On Wednesday, residents appeared to appreciate the changes as they ate free food, played and mingled with city officials.

“It feels safe now,” said 15-year-old Adrian Dennis. “It’s a better place.”

Copyright © 2011 Nathan Max and San Diego Union Tribune
Reprinted with permission.

Historic Building Gets Makeover

GAZETTES TOWN-NEWS

By Jonathan Van Dyke, Staff Writer
June 25, 2010

Imagine just as you’re figuring out life, your support is pulled out from under you.

According to experts in the field, foster care only supports children until age 18. Once the child reaches that age, regardless of whether they’re in high school or not, the support stops. Typically, that means they must leave where they are living.

By July of next year, youth displaced in this manner should have a new place to turn to in Long Beach.

Officials met last week for an official “wall-breaking” to kickoff the restoration of the historic Palace Hotel which is being converted into temporary housing for displaced youth.

“All the financing is in place and the developer (LINC Housing Corporation) has given the go-ahead for construction — it should be starting as we speak,” said Patrick Ure, development officer for the Housing Services Bureau.

The abandoned building will be given a significant amount of improvements, Ure said, including a remodeled ground floor, a new west-side entrance, new “architecturally appropriate” windows and new trees and landscaping along Ohio Street.

“The exterior of the building will remain very similar to its current condition,” Ure said. “It is a city landmark, so we’re limited to the changes we can make.

“Inside, it’ll be basically gutted and completely rebuilt.”

The 12-month project also will revamp the ground level to include a retail space and a large community room. Officials said the hotel would have room for 13 occupants and a manager.

Community support has been strong so far, said Fourth District City Councilman Patrick O’Donnell.

“There are very few projects in the nation, let alone the region, addressing this issue,” he said. “The stories I hear are more compelling than any statistic or report. I’ve had a lot of people come up to me and want to help.”

There is plenty of need.

“These people have aged out of the foster care system,” said Polly Williams, president of United Friends of the Children (UFC), the nonprofit set to run the future institution.

Once the project is completed, UFC will institute the program, which is for 18-24 year olds and is to last about 18 months for each tenant. The program is designed to give these young people career and educational services and mental health support as they work toward independence.

“(It’s really designed) to engage them with relationships with adults who care about their lives and their futures,” Williams said.

UFC has been running similar programs since 2002 in southern California. Since then, Williams said, they’ve had hundreds of success stories, with approximately 80% of those who are served and then move on to become housing-independent and 74% employed.

“They can make a very successful transition to living on their own,” she said. “We’re trying to stay in contact with them for many, many years afterwards.”

For more information on UFC services, visit www.unitedfriends.org.

Copyright © 2010 Gazettes Town-News
Reprinted with permission.

Ground Breaks on Unique Affordable Seniors Project in South L.A.

MULTI-HOUSING NEWS

Hotel’s New Life: The Palace in Long Beach will be converted into housing for former foster kids

PRESS-TELEGRAM

By Greg Mellen, Staff Writer
June 21, 2010

LONG BEACH – On Monday, work began to turn the once-notorious and abandoned Palace Hotel into a place of hope for young men and women leaving the state’s foster care system.

In lieu of a more traditional groundbreaking, a wall-breaking was staged in the historic building, which will be converted.

After renovations are completed on the $6 million project, the hotel will be converted into 13 studio apartments for an often overlooked segment of the population.

In addition to housing, the youth will receive social, educational, mental health, job training and life-skills services, run by the nonprofit United Friends of the Children.

The Long Beach Housing Development Company, which owns the building, is contributing about half of the cost of the renovations. Long Beach-based LINC Housing is the nonprofit developer.

The Palace Hotel will be the city’s first housing unit for youth coming out of foster care.

According to officials, of the 1,400 to 1,500 youths who leave foster care each year in Los Angeles County, a staggering half face homelessness or chronic unemployment within two years.

Residents at the Palace Hotel will pay rent and stay there for about 18 months as they prepare to become independent.

Copyright © 2011 Press-Telegram
Reprinted with permission.

Hotel with a past will help give ex-foster kids a future

PRESS-TELEGRAM

By Greg Mellen, Staff Writer
January 28, 2010

LONG BEACH — The exterior bears the scars of its checkered past, but inside it was all bright smiles and optimism as developers, community activists, residents and city officials got a glimpse Thursday of the future for the Palace Hotel.

The once-notorious and long-abandoned hotel on Anaheim Street is undergoing a physical face-lift and philosophical image change.

After renovations are completed on the $6 million project, the hotel will be converted into 13 studio apartments that will house young men and women leaving the foster-care system.

In addition to housing, the youth will receive social, educational, mental health, job-training and life-skills services, run by the nonprofit United Friends of the Children.

“It hasn’t been a positive place,” 4th District Councilman Patrick O’Donnell said of the 1929 hotel best known for prostitution and drug-dealing before it was closed down. “We’re taking it forward to make it a positive place.”

And O’Donnell said if the results are what he envisions, the Palace Hotel will be a “tipping place” for positive developments in the community.

“This not just a bunch of 18-year-olds living together, but a bunch of 18-year-olds on the right track.”

They’re people like Brian Youngblood and Susanna Gonzalez, alumni from UFC-sponsored programs in Whittier.

Youngblood now lives in the Palace Hotel neighborhood and is an apprentice electrician with Pacific Industrial Electric.

Gonzalez lives in San Pedro and is a telephone technician for Los Angeles County.

Both say United Friends of the Children gave them the boost they needed to find their way after they “aged out” of foster care and were fending for themselves without any support.

Gonzalez, 26, said she was good at fending for herself, but needed emotional support to deal with the issues and abuse she faced growing up.

Gonzalez said like many foster kids, she just needed an opportunity.

Youngblood said he was skeptical about the program when he entered but was greeted with “unconditional love.” Now he is a contributing member of the community.

“I have a steady job, I’m going to school, I’m staying out of trouble,” he said.

Youngblood added it satisfied him, “Just to be able to support myself and not be dependent on anyone else.”

The Long Beach Housing Development Company owns the building and contributed up about half of the cost of the renovations. It teamed up with Long Beach-based LINC Housing after seeing the renovation the nonprofit developer did on the Hoover Hotel in Whittier, which was converted into senior housing.

The Palace Hotel is the city’s first housing unit for youth coming out of foster care.

According to officials, of the 1,400 to 1,500 youths who leave foster care each year in Los Angeles County, a staggering half face homelessness or chronic unemployment within two years.

Residents at the Palace Hotel will pay rent and stay there for about 18 months as they prepare to become independent.

Copyright © 2010 Press-Telegram
Reprinted with permission.

Tour Precedes Palace Overhaul

GAZETTES TOWN-NEWS

By Kurt Helin, Editor
January 27, 2010

Work is set to begin soon on the conversion of a blighted, abandoned building in the center of the city into a transition home for foster care youth, something Fourth District Councilman Patrick O’Donnell said he hopes can transform a neighborhood as well.

A public meeting is set to take place today (Thursday) where people can get a look at what is planned for the historic former Palace Hotel location on Anaheim Street and talk to the people putting it together.

“We’ve had other community meetings on this,” O’Donnell said. “Thursday is the chance for people to see what is planned and see what the building looks like now.”

The now picture is pretty run down. The city took the building over in 2005 after a tax default, and it has sat vacant since. The building has been a blight and crime problem in the area since that time, according to O’Donnell.

Last year, Long Beach Housing and LINC agreed to a deal — that the City Council approved �� to build a foster care transition center, which will be run by Los Angeles-based nonprofit United Friends of the Children (UFC). In the current foster care system, money stops and youth are essentially kicked out the day they turn 18 — even if they are in the middle of their senior year of high school, O’Donnell said.

The people living in one of the 14 units in the building will have to pay rent and take on other responsibilities, including attending life-skill classes. The hope is to give these youth a better transition into the real world, O’Donnell said.

“This is a very vulnerable population and this is a big unmet need in the area,” O’Donnell said. “I see this program as a very good thing for the city and these kids.”

And hopefully, the neighborhood.

The Palace Hotel has been a problem building for years, O’Donnell said. The large abandoned building was not only a neighborhood eyesore, but also became a magnet for crime.

The changes call for a complete renovation of the building to put in the 14 units, plus create meeting space and a lobby. There also will be a ground floor retail space that will be rented out. All of this will be accomplished while keeping some of the historic touches on the building, he said.

The work will cost an estimated $5.8 million, money that comes from private donors to the UFC as well as money from the city’s Housing Fund. The work is going to take about 14 months, O’Donnell said.

He also said he hopes it will spark some renovation in an area of Anaheim Street that has not seen a lot of upgrades recently. Taking away a blighted building and replacing it with energetic people could start to change an area, O’Donnell said.

Copyright © 2010 Gazettes Town-News
Reprinted with permission.

Area builder gets grant for affordable housing
Long Beach Press-Telegram

LONG BEACH PRESS-TELEGRAM

By John Canalis
October 16, 2009

LINC Housing Corp., a Long Beach-based nonprofit builder of affordable housing for families and senior citizens, has received a $35,000 grant from JPMorgan Chase. It will go toward building environmentally sustainable homes for low- to moderate-income seniors, families and special needs populations statewide.

Copyright ��2009 Long Beach Press-Telegram
Reprinted with permission.

Grand Opening for Housing Complex

DAILY INDEPENDENT

Daily Independent
June 19, 2009

Situated on 6.09 acres on the southeast corner of W. Church Ave. and S. Downs Street, the brand new 81-unit complex features seven two-story residential buildings offering two- and three-bedroom rental apartments to families earning between 30 and 60 percent of the area median income as defined by HUD. Rents range from $344 to $836 depending on household income.

Residents of Larkspur Village Apartments joined representatives from LINC Housing, National Affordable Communities Inc., and the City of Ridgecrest to celebrate the grand opening of Ridgecrest’s newest affordable community.

Each apartment home has plush carpeting and vinyl flooring, window treatments, all kitchen appliances, and central air and heat. The community also includes a recreational and community room including kitchen facilities, social areas and lounge seating, and spacious laundry center. Computers are available with online access. The outdoor amenities include a pool, spa and play area for children.

“Ridgecrest, like so many communities in California, has a shortage of affordable rental housing,” said Hunter L. Johnson, LINC Housing president and CEO. “Larkspur Village has successfully moved 81 families from waiting lists to safe, decent homes where they’ll be able to focus on their families and jobs, and perhaps even begin a path toward home ownership.”

Larkspur Village Apartments was financed by SunAmerica and the City of Ridgecrest, and is managed by Buckingham Property Management. Total development cost of the project was $16.8 million.

LINC Housing development wins awards

LONG BEACH PRESS-TELEGRAM

Long Beach Press-Telegram
October 31, 2011

Long Beach-based LINC Housing recently received several awards for its housing development, SEASONS at Compton.

Awards include Senior Housing Project of the Year by SCANPH 2011; the SAGE Award, Special Needs Project of the Year by the BIA of Southern California 2011; Readers’ Choice Award Finalist by Affordable Housing Finance Magazine 2011; and the Gold Award, “On The Boards” Design of Special Needs Community by NAHB Best of 50+ Housing Awards 2009.

55+ Housing Council Recognizes Senior Housing Programs and Contributors

SENIOR HOUSING NEWS

By Alyssa Gerace
October 5, 2011

The 55+ Housing Council, part of the Building Industry Association of Southern California, recently announced its winners of the annual SAGE Awards, which recognize individuals, projects and programs that have contributed to enhancing the quality of life of Southern California residents aged 55 and older.

Now in its 17th year, the program’s four categories are Person of the Year, Program of the Year, Project of the Year, and an “On the Boards” category.

The “Person of the Year” award went to Graham Espley-Jones, the president of Western Community Housing, Inc., in recognition of his contributions to 55+ housing in SoCal, dating back more than 20 years. Espley-Jones’ senior housing connections have resulted in participating in the development of more than 10,000 senior housing units.

Under his guidance during the past nine years, he has overseen the exponential growth of Western’s affordable housing portfolio from ownership interests in five affordable apartment communities to more than 80 communities, financed with more than $850 million in tax credits and other affordable funding sources.

“Program of the Year” went to the Laguna Woods Village Social Services Department, which was implemented and managed by Professional Community Management (PCM). The Social Services department has been instrumental to the community for nearly four decades, serving as a “safety net” for residents as four full-time social workers coordinate free counseling, support groups, education, and emotional and social support.

There are two winners for the “Project of the Year” award: the SEASONS at Compton (LINC Housing, a special needs senior affordable community) and Mirandela Senior Apartments in Rancho Palos Verdes (AMCAL, an affordable rental community).

The “On the Boards” SAGE award recognizes residential communities still in design stages, and was won this year by 5555 Hollywood, a transit-oriented mixed-use affordable senior housing apartment.

Award winners will be honored at the SAGE Awards event on Nov. 3, 2011; more information is available here.

Copyright © Senior Housing News 2011
Reprinted with permission.

Michaels, LINC Housing Kick Off $23M Affordable Seniors Housing Project in Oakland

MULTI-HOUSING NEWS

By Barbra Murray, Contributing Writer
September 29, 2011

Oakland, Calif. — The Michaels Development Company and LINC Housing Corporation will soon add 119 rental residents to West Oakland’s affordable housing pool, now that the team has commenced construction of Red Star Apartments. Designed by architectural firm KTGY Group, the $23 million endeavor will produce a visually appealing building on what had been a hazardous site.

Location is always a key element to success for any development, and Red Star will not disappoint. “We’re building in a transit-oriented district that is right next to the BART station, and that’s a win-win for everybody,” Dave Lukens, vice president of Michaels Development, tells MHN. “It’s going to increase ridership and it’s going to be great for our residents. They’ll be literally within walking distance to the Bay Area Rapid Transit station, so they can be mobile and enjoy a good quality of life.”

Easy access to downtown Oakland, nearby San Francisco and other popular destinations via public transportation is not the only amenity that will enhance quality of life for Red Star’s tenants. The apartment community will feature a computer center and a state-of-the-art recreation center, as well as outdoor offerings. There will also be something for both residents and neighbors to enjoy �� 3,000 square feet of retail space. “Retail space, leasing offices and common project amenities at the first floor blend with the walkable street scene of the adjacent Mandela Gateway development,” Keith Labus, KTGY principal and lead designer for©Red Star, tells MHN. “Red Star’s sustainable design and close proximity to services, shopping, cultural amenities and transportation further increase affordability and quality of life for our residents who have few affordable housing options.”

People may say looks aren’t everything, but, well, they certainly don’t hurt, and Red Star will look nothing like the Red Star yeast factory industrial building that once occupied the site. In keeping with the current architectural tone of the neighborhood, the architecture firm went with a classic California contemporary style. “The design is typical of a KTGY design product and they do a fantastic job,” Lukens said. “With the design, the goal is always to make sure that when we’re doing a development; we don’t want people to be able to point and say, ‘That’s low-income housing.’ This product is not only functional, but also aesthetically pleasing.”

In major cities across the country, the demand for affordable housing outweighs the supply, and Oakland is no exception. Overwhelming housing need or no, the parsimonious credit market does not discriminate when it comes to refusing loan requests, so Michaels and LINC faced challenges in securing the necessary financing for the project, which did not receive any city funds. Ultimately, they were able to cull the money through a bevy of different sources. The partners secured $1 million through a grant from the state’s CALReUSE program for the environmental remediation of the site; $1.1 million in Affordable Housing Program Funds from The Federal Home Loan Bank of San Francisco; and $1.5 million in Infill Infrastructure Grant Program funds from the California Department of Housing and Community Development. “So there are soft sources along with the equity that we got from RBC Capital Markets for the tax credits and the first mortgage that we have from Citibank,” Lukens noted.

Red Star will not only create low-income housing, it will also bring a bevy of construction jobs to the community. “The City of Oakland recently mandated that any developers that receive city funds use 50 percent of the construction costs to hire local Oakland sub-contractors and consultants, and although we didn’t get any city money, we still let people know that we’re committed to that mandate. And so far so good. We have about 25 percent of the job bid out and of that, we’re right at 50 percent of local subcontractors so we’re hoping to keep that up. We think that by the end of the project we’ll still be right around 50 percent of local hiring and that is, again, without any local city dollars.”

Advent Companies, which has worked with KTGY on over 30 developments, is on board the Red Star project as general contractor and is on schedule to complete construction in August 2012.

Copyright © 2011 Multi-Housing News
Reprinted with permission.

Escrow closes on property for Whittier low-income housing development

WHITTIER DAILY NEWS

By Mike Sprague, Staff Writer
September 8, 2011

WHITTIER — Escrow has closed on a half-acre vacant lot at the southeast corner of Pickering Avenue and Philadelphia Street where a Long Beach developer plans to build a low-income rental housing project.

That means Linc Housing Corp. can move forward to obtain permits from the city to build the 21-unit, two-story, 27,900-square-foot development.

Construction is expected to begin by the end of the year, and opening is expected sometime in 2014, said Sid Paul, director of acquisitions for Linc Housing.

It purchased the property for $645,000.

“We’re extremely excited,” Paul said about the project. “We’ve already done business in Whittier and are excited to do another building.”

Linc Housing already owns Seasons at the Hoover senior housing development in Uptown.

Jeff Collier, chief assistant city manager, called the news that escrow had closed “fantastic.”

“We’re real excited to see the project move forward,” Collier said.

“Obviously, that’s been a vacant site for a long time,” he said. “It’s very encouraging to see the opportunity for new construction on affordable housing when the market is so depressed right now.”

The lot has been empty since the 1987 Whittier Narrows earthquake.

Potential renters for the site will have to wait because Linc isn’t ready to begin a list, Paul said.

Linc plans to build six one-bedroom, eight two-bedroom and seven three-bedroom units.

They will be rented to 14 people, who have very low incomes and six, who have moderate incomes.

While these numbers are likely to increase because of inflation, currently to qualify as very low income, a family of three would make no more than $22,380 annually. The same size family with a moderate income would make no more than $44,000.

Rents will range from $500 to $1,200 a month.

Total cost of the project will be $9 million. The city will loan Linc $5 million at 2.5 percent interest in federal housing and redevelopment funds that will be paid back over a 58-year period.

Linc also is receiving $4 million in low-income housing federal tax credits that will finance the difference.

Paul said the development will be targeted toward families.

“It will be an environment where families can live and thrive,” he said.

The project will have an on-site manager.

Linc will provide a number of services, including after-school programs, homework center, and help with health, fitness and finances.

Copyright © 2011 Whittier Daily News
Reprinted with permission.

Foster Youth Transition Ready To Open At Palace

GAZETTES.COM

By Jonathan Van Dyke
August 10, 2011

A transitional housing addition to Long Beach is nearing completion, officials said.

Last Thursday, Aug. 4, construction workers used a crane to install one of the last major pieces onto the roof of the renovated Palace Hotel — two large fuel cells. The restoration project has gone smoothly, for the most part, officials at LINC Housing said.

“I think we’re looking for completion sometime in September and early move-ins sometime in October,” said Hunter Johnson, LINC president and CEO.

The Palace Hotel, which is a designated landmark in the city, is being converted into transitional housing for the use of United Friends of the Children (UFC). Once the project is completed, UFC will institute an 18-month program for youth ages 18-24. The program is designed to give these young people career and educational services and mental health support as they work toward independence.

The foster care system only supports children until age 18. Once the child reaches that age, regardless of whether they’re still in high school or not, the support stops. Typically, that means they must leave where they are living.

UFC currently is working to recruit people for the 14 studio apartments (there is one apartment for a building manager) that have been completely restored and improved on the interior, officials said.

“We’re planning on having an orientation (soon) and we’re in the middle of recruitment,” said Polly Williams, UFC president. “We’re looking for people who are engaged in the city of Long Beach, who live there and who want to work. They have to want to have adults speaking into their lives (and giving guidance).”

The affordable housing will cost 30% of that young adult’s income, Williams said.

While there were no intentions of changing the outside that much, Johnson said his team worked to make the restorations and the building green and environmentally friendly.

To that end, new windows were installed. There are massive solar panels on the roof, and those coupled with the two hydrogen fuel cells (powered by natural gas piping) will be able to give the building the majority of its electricity, he said.

There will be a common area, a computer lab and the roof has been outfitted with patio furniture for an extra common area.

“We wanted to provide a place for them outdoors when it is nice out, so we built a rooftop patio,” Johnson said.

There also is a 1,000-square-foot retail space built into the building that has not been leased.

“We’re hoping to find someone who could create some jobs, maybe even for the youth living there,” Johnson said.

LINC plans on having the restoration done by mid to late-September. From there, UFC will start moving the young adults in by the end of October.

For more information, visit www.unitedfriends.org.

Copyright © 2011 Gazettes.com
Reprinted with permission.

ClearEdge fuel cells to power historic Palace Hotel in Long Beach

RENEWABLEENERGYFOCUSUSA.CO

renewableenergyfocususa.com
August 8, 2011

In California, ClearEdge Power has installed two 5 kW ClearEdge�� fuel cell combined heat and power (CHP) systems at The Palace Hotel in Long Beach.

The ClearEdge5 high-temperature PEM fuel cell systems are being supplied by Oregon-based ClearEdge Power. The fuel cells will enable LINC Housing to save money and reduce the impact of its apartment building on the environment.

The Palace Hotel renovation project, by non-profit affordable housing manager LINC Housing, will provide apartments for foster children that are getting too old for the fostering system.

“People think it’s not possible to bring new technology to the homes we build; as a non-profit developer we are pleased to demonstrate that with partnerships and perseverance, it can be done,” says Hunter L. Johnson, LINC’s President and CEO.

In addition to the ClearEdge5 fuel cells, the building also has photovoltaic solar panels. This combination of alternative energy technologies should allow the project to generate most of its electricity onsite. The fuel cells will also generate enough heat to meet nearly all of the building’s hot water needs.

“We work with a variety of different builders, from high-end residential architects to affordable housing developers, to bring smart energy to businesses and homeowners today,” says Mike Upp, Vice President of Marketing at ClearEdge Power.

“The Palace Hotel is a perfect example of this, and by combining the ClearEdge5 system with its solar power implementation, the building will get 100 percent of its heat and energy from alternative sources,” he adds.

The renovation should be completed in late August, with the first residents expected to move in early in October. Funding for the fuel cells was provided by the John S. and James L. Knight Foundation. through the National Trust Loan Fund.

Copyright © 2011 renewableenergyfocususa.com
Reprinted with permission.

City approves resolution for housing project

ANDERSON VALLEY POST

By Pamela Britton-Baer
July 6, 2011

The City of Anderson approved a resolution that could mean the construction of 33 new affordable housing units. On July 5, the City Council authorized the submission of an application to the HOME Investment Partnerships Program (HOME). If the application is approved, it could mean $5.1 million for the City of Anderson to use toward affordable housing.

LINC Housing has proposed to build the development on Diamond Street and Cory Lane. The city would allocate up to $5 million dollars for construction which would be re-paid to the city in future years.

“As part of our application,” said Sidhartha Paul, Director of Acquisitions for LINC Housing, “we promise a certain level of services.”

The proposed project will have one, 16 two-bedroom unit and one, 16 three-bedroom unit, plus one manager’s unit. Residents with incomes ranging from 30 to 60 percent of Anderson’s median income will be eligible to live in the new development.

LINC Housing’s web site claims, “Our communities are known for excellent design, outstanding management, and life-enhancing services.”

Those life-enhancing services could include: After-School Programs, Health and Well-being, Financial Counseling Services and Volunteer Resource Management.

“We are not an absentee owner,” said Paul.

According to the Project Summary submitted to the city council, “Diamond Court Apartments” would feature a “tot lot” and play equipment for children, a swimming pool with spa and a large community space where resident services programs and other residential events would take place.

The city council voted unanimously to adopt the resolution.

Copyright © 2011 Anderson Valley Post
Reprinted with permission.

Reader’s Choice Awards – Seniors Finalists

AFFORDABLE HOUSING FINANCE

By Christine Serlin
July/August 2011

SEASONS AT COMPTON
Developer: LINC Housing
Architect: Nardi Associates, LLP
Major Funders: National Equity Fund, Inc.; Bank of America Merill Lynch; Federal Home Loan Bank of San Francisco; City of Compton; City of Industry; County of Los Angeles; California Department of Housing and Community Development; California Tax Credit Allocation Committee

COMPTON, CALIF. — When LINC Housing started to plan its SEASONS at Compton project for seniors, the team realized that many developmentally disabled individuals had unmet housing needs.

According to Suny Lay Chang, co-COO and executive vice president of development, the growing need stems from the life span increasing for developmentally disabled adults and the number of aging parents and grandparents caring for developmentally disabled dependents.

When SEASONS at Compton opens its doors in July, it will feature 67 one-bedroom and 16 two-bedroom units for residents earning between 30 percent and 50 percent of the area median income. Thirty-two of the units will be set aside for households that have a developmentally disabled resident.

LINC Cares will provide activities, and there will be on-site case management. The developer also creating landscaped open space with a circuit to walk with exercise stations designed for people with limited mobility.

“It’s a beautiful project that serves the underserved with both the developmentally disabled and seniors populations,” says Chang.

Getting the deal off the ground wasn’t an easy task. It took more than six years, about 15 funding sources, and the support of the city and the county since the property was built on a vacant lot that straddles both jurisdictions.

The almost $25 million project received funding from various local, county, and state agencies, including an infill infrastructure grant and L.A. Community Development Commission support. It also received Tax Credit Assistance Program funds, permanent financing from Bank of America Merrill Lynch, tax credit equity from National Equity Fund, Inc., and a grant from the Federal Home Loan Bank of San Francisco.

Copyright © 2011 Hanley Wood, LLC. All rights reserved.
Reprinted with permission.

LINC Housing: Two are promoted to chief operating officer

LONG BEACH PRESS-TELEGRAM

Biz Monday – Staff Reports
June 6, 2011

Long Beach-based LINC Housing has promoted Suny Lay Chang and Karen Maeshima to co-chief operating officers.

Chang shares responsibility for day-to-day business operations, cash and risk management, company policies and overall business strategy and oversees housing development operations and its marketing, branding and corporate development activities.

Maeshima oversees all aspects of accounting, asset management, resident services, and general corporate operations and assists in implementing effective financial strategies and reports, its related affiliates, and its portfolio of affordable housing assets. She oversees predevelopment and construction draw processes for housing development, as well as asset management of LINC’s portfolio of 40-plus properties.

Copyright © 2011 Press-Telegram
Reprinted with permission.

Whittier approves first low-income rental housing project

WHITTIER DAILY NEWS

By Mike Sprague, Staff Writer
March 14, 2011

WHITTIER — The city’s first low-income rental housing project for non-senior citizens has been approved.

LINC Housing Corp., a Long Beach-based affordable housing developer, will build the 21-unit two-story, 27,900 square-foot development on a half-acre vacant parcel at the southeast corner of Pickering Avenue and Philadelphia Street.

“We have a lot of faith in LINC because of their experience at the Hoover,” Councilman Bob Henderson said, referring to the Seasons at the Hoover Project for seniors in the Uptown area.

“They’ll have an on-site manager,” Henderson said. “They’ll have all kinds of special programs. It’s also going to be an attractive building.”

In LINC’s 26 years of existence it has been involved in the development of more than 6,000 units in California and owns 4,000 of them.

The company is in escrow to purchase the property for $645,000.

It’s also new development on a lot that has been empty since the 1987 Whittier Narrows earthquake, said Mayor Greg Nordbak. A mortuary used to be there.

And it’s not a large project of the kind that can cause problems, Nordbak said.

The city will loan LINC $5 million at 2.5 percent interest in federal housing and redevelopment funds that will be paid back over a 58-year period.

Total cost of the project will be $9 million. LINV is applying for nearly $4 million in low-income housing federal tax credits that will allow it to finance the difference.

Sid Paul, director of acquisitions for LINC, said he’s optimistic his company will be successful. It has two rounds �� the first this month and another in July — to apply.

Should LINC be unsuccessful, LINC would look for other sources of money, Paul said.

If successful, the project could open as soon as Jan. 30, 2014.

LINC plans to build six one-bedroom, eight two-bedroom and seven three-bedroom units.

They will be rented to 14 people, who have very low-incomes and six, who have moderate incomes.

To qualify as very low income, a family of three would make no more than $22,380 annually. The same size family with a moderate income would make no more than $44,000.

Rents will range from $500 to $1,200.

Paul said that low-income housing won’t pose a problem to the city.

“People tend to think of it as a problem but the income targets people who work in this community and need housing,” he said.

“It’s not like we’re building housing to attract undesirable people from elsewhere,” Paul said. “We’re looking for people who work in the community and can’t afford to live here.”

LINC will provide a number of services, including afterschool programs, homework center, and help with health, fitness and finances.

“We find that building housing isn’t enough,” he said. “There needs to be complementary services to help the community sustain itself.”

Copyright © 2011 Whittier Daily News
Reprinted with permission.

Green Refinance Plus Program Produces First Loan Closing

MORTGAGEORB

May 9, 2012

Columbia, Md.- based Enterprise Community Investment Inc. has closed the first loan under the Green Refinance Plus program, a partnership between Fannie Mae and the U.S. Department of Housing and Urban Development (HUD) introduced last year to incentivize energy — and resource-efficiency improvements in affordable housing.

The $19.4 million refinance loan to LINC Housing Corp. for City Gardens in Santa Ana, Calif., provides $1.5 million for property improvements, including replacing old and inefficient gas-fired furnaces with ENERGY STAR-rated furnaces and installing low-flow plumbing fixtures, energy efficient lighting in units and common areas, and a passive solar domestic hot water heating system. The 274-unit affordable housing development primarily serves families with children in one of the nation’s most expensive housing markets.

Enterprise Community Investment will oversee the renovations and service the loan, which it originated and underwrote.

“Through innovative financial products as part of our vision to green all affordable housing by 2020, Enterprise is bringing the health, economic, and environmental benefits of green building and preservation to communities nationwide,” says Lamar Seats, senior vice president of multifamily mortgage finance at Enterprise Community Investment. “The Green Refinance Plus program provides owners of affordable housing a new refinancing opportunity that empowers them to make energy improvements and other needed renovations that reduce operating costs, improve air quality for residents, and protect the environment at the same time.”

Copyright © 2012 MortgageOrb
Reprinted with permission.

Long Beach housing group gets grant for special-needs homes

LONG BEACH PRESS-TELEGRAM

By Karen Robes Meeks, Staff Writer
March 12, 2012

Long Beach-based LINC HOUSING recently received a $20,000 grant from Citibank to support the development of more special-needs housing.

Citi has been a longtime supporter of LINC, a nonprofit builder of affordable housing for low-income families, seniors, and people with special needs.

LINC has created projects such as SEASONS at Compton for seniors and people with special needs and The Palace apartments for former foster youth, both completed in 2011.

“LINC intends to replicate these new models in other communities,” LINC president and CEO Hunter L. Johnson said in a statement. “Citi’s ongoing support of our work is one of the reasons for our continued success.”

Citibank also has granted funds for programs provided by LINC Cares, LINC’s resident services division; financial literacy classes for LINC residents. Funds also have helped retrofit current buildings with sustainable, green features and allowed LINC to hire staff to focus on acquiring and preserving existing affordable housing.

Copyright © 2012 Press-Telegram
Reprinted with permission.

Low-income Whittier housing project ahead of schedule

WHITTIER DAILY NEWS

By Greg Mellen, Staff Writer
March 12, 2012

WHITTIER — Construction on the city’s first low-income rental housing project for non-senior citizens is ahead of schedule, said its project manager.

Expected to open near the end of this year, construction may be complete sometimes this summer, said Brian Bruschke, project manager for LINC Housing, LINC Housing Corp., a Long Beach-based affordable housing developer.

“The job is going really well,” Bruschke said.

The 21-unit, three-story, 27,900-square-foot complex is being built by San Juan Capistrano-based Advent Companies on a vacant half-acre parcel at the southwest corner of Pickering Avenue and Philadelphia Street.

Contractors continue work on Linc Housing’s 21-unit low-income Mosaic Gardens housing project on Monday at the southwest corner of Pickering Avenue and Philadelphia Street in Whittier. (Keith Durflinger/Staff Photographer)

The property has been vacant since the 1987 Whittier Narrows earthquake.

LINC still isn’t taking applications for prospective renters, Bruschke said.

Rents will range from an estimated $523 to $1,266 per month, depending on household income.

There will be six one-bedroom, eight two-bedroom and seven three-bedroom units.

They will be rented to 14 households who have very low incomes and six who have moderate incomes.

While these numbers are likely to increase because of inflation, currently to qualify as very low income, a family of three would make no more than $22,380 annually.

The same sized family with a moderate income would make no more than $44,000.

Funding for the $9.4 million development comes from a number of sources including a loan from the city using federal housing and redevelopment funds and tax credit equity from Bank of America.

The property will include a large community space where residents will enjoy special events and resident services programs.

LINC will provide a number of services, including after-school programs, homework center, and help with health, fitness and finances.

Copyright © 2012 Whittier Daily News
Reprinted with permission.

Program funds Fresno County housing projects

THE BUSINESS JOURNAL

By Staff, The Business Journal
March 12, 2012

Three housing projects in Fresno County were awarded grants through an affordable housing competition, bringing a total of 183 living units to low-income families, seniors, veterans and other disadvantaged individuals.

In all, $32.9 million was given out to 57 projects in eight states during the second round of funding in the 2011 year of the Affordable Housing Program put on by the Federal Home Loan Bank of San Francisco.

The program has been running since 1990, funded when the bank sets aside 10 percent of its net income each year to help jumpstart affordable housing projects.

With a grant of $320,000 from the program will help the LINC Housing Corporation begin building the Avila Avenue Apartments in Parlier.

When complete, the project, located at 14100 E. Parlier Ave., will consist of 33 residential apartment units in four buildlings for large, very low-income families. It will also have the addition of a community room, kitchen and computer space along with a pool, spa, playground and barbeque area.

In Reedley, an $800,000 grant went to the Corporation For Better Housing to build 80 residential units in the Reedley Family Apartments.

The project, located east of South I Street in Reedley, will providing housing for low-income and homeless households along with a community space for social services, a library, a game area, a computer lab, laundry facilities, a play area and other amenities.

The Housing Authority of the City of Fresno received a grant of $690,000 to build the Renaissance at Santa Clara in Fresno.

The project, located between 1505-1585 Santa Clara St., will consist of 70 units within six, two-story walkup buildings that will provide permanent supportive housing to individuals who are homeless or at-risk of homelessness.

The project will feature a community building with a kitchen and dining space, community room, a computer lab, laundry facilities and office space for on-site providers of social and mental health services.

Copyright © 2012 The Business Journal
Reprinted with permission.

Lorena Heights Affordable Apartments Open in LA’s Boyle Heights

MULTI-HOUSING NEWS

By Jeffrey Steele, Contributing Writer
March 12, 2012

Los Angeles — The East Los Angeles enclave of Boyle Heights welcomed a new affordable housing development with the grand opening of Lorena Heights Apartments on March 7, 2012. Developed by The Michaels Organization and non-profit development partner LINC Housing, designed by KTGY Group and built by CMSI/Advent Companies, Lorena Heights is a $40 million community featuring 112 two- and three-bedroom apartments in a pairing of four-story contemporary buildings.

Lorena Heights is available to families earning 30 to 60 percent of Area Median Income (AMI) in Los Angeles County, as defined by the U.S. Department of Housing and Urban Development. Boyle Heights residents have responded enthusiastically to the development, with more than 800 people submitting applications to live in the urban infill apartment community.

“Given that we have leased 100 units in 45 days, and that 100 percent of our residents are from Boyle Heights, this speaks volumes about what Lorena Heights means for the neighborhood,” Michaels Development Company vice president of development David Lukens tells MHN.

Lorena Heights Apartments is situated on a 2.62-acre parcel of hillside real estate, with views of the Hollywood Hills and easy access to major highways and public transportation. Its common amenities include a picnic area, playground, community recreation center featuring the restored exterior of a landmark house of worship that once stood on the parcel, and a below-grade parking garage.

Lorena Heights residents will be able to take advantage of on-site supportive services, including an after-school program administered by LINC Housing’s resident service department, LINC Cares. Expert property management is to be provided by Interstate Realty Management, a sister company of Michaels Development, helping ensure Lorena Heights remains a community asset.

At the grand opening, a number of dignitaries spoke about the critical need for affordable housing developments like Lorena Heights Apartments. Among them was Los Angeles 14th District councilmember Jose Huizar, a native of Boyle Heights who grew up a stone’s throw from the new apartment community.

“The Lorena Heights Apartments are a welcome addition that will help serve the Boyle Heights community,” he said. “This new housing complex brought 75 jobs to the local community, and is part of a revitalization effort in recent years that has resulted in $2 billion in investment in Boyle Heights.”

Added Hunter L. Johnson, president and CEO of LINC Housing: “Even as the economy shows signs of recovery, we know many people still struggle. We’re pleased to see this beautiful new community become a reality for families in this area. And we’re not going anywhere. LINC Cares’ resident services will be here to help improve and enhance the lives of those who now call Lorena home.”

Lorena Heights was the beneficiary of $19.9 million of private equity financing from Bank of America Merrill Lynch raised through the sale of federal Low Income Housing Tax Credits as well as $5 million of infill infrastructure funds from the California Department of Housing and Community Development.

The California Pollution Control Finance Authority provided another $5 million. Bank of America Merrill Lynch provided $15.8 million of construction and bridge loans. Continental Mortgage Corporation provided $10 million in bridge loans. In addition, the property’s seller has provided a residual receipts note of $1.2 million.

Copyright © 2012 Multi-Housing News
Reprinted with permission.

Long Beach’s Palace Hotel Reopens as Affordable Housing

PRESERVATIONNATION

By David Garber
February 27, 2012

Everyone loves a good preservation before and after. But for the community of Long Beach, California, the Palace Hotel (now just called The Palace) restoration and reuse was about much more than the building. Last Wednesday, the community gathered to celebrate the grand opening of the renovated two-story building that now includes 13 apartments for young adults who have aged out of the foster care system.

The renovation of the historic 1929 hotel was spearheaded by LINC Housing, a California statewide organization formed to preserve and create affordable housing. In addition to the 13 studio apartments, the building includes a manager’s unit, common areas (like a great roof deck), and offices for program services. The ground floor retail space will be occupied by iCracked, a mobile phone and tablet repair service that will hire residents from The Palace.

“It’s been incredibly rewarding to watch the transformation of this historic building, and it will be even more rewarding to see these young adults successfully transition from foster care to independence,” said Hunter L. Johnson, LINC’s president and CEO.

Like many adaptive reuse project across the country, this renovation includes a variety of green design features that up the building’s efficiency and long-term sustainability. For example, the appliances are all Energy Star certified, there’s a high efficiency HVAC system that services the building, and each apartment is fitted out with dual-flush toilets. Solar panels and fuel cell technology were also incorporated to help reduce utility costs. Although it’s still going through the U.S. Green Building Council’s LEED process, The Palace is expected to achieve LEED Gold certification.

David Garber is the blog editor at the National Trust for Historic Preservation.

Copyright © 2012 National Trust for Historic Preservation
Reprinted with permission.

Palace Hotel Finishes Youth Housing Conversion

GAZETTES.COM

By Jonathan Van Dyke
February 22, 2012

While many young adults — especially during this time of recession — find themselves living at home well past high school ages, the foster care system is not so forgiving.

A collaboration of people in Long Beach celebrated the re-opening of the historic Palace Hotel Wednesday for its new use — to help bridge the gap of the foster system and help place young people into jobs and a pathway to success.

City officials, LINC Housing, the Long Beach Housing Development Company and United Friends of the Children celebrated the grand opening of the new-but-old apartment complex. The Palace has been well known since the 1920s, but now it will house 13 studio apartments for emancipated Los Angeles County youth ages 18-24 in United Friends’ Pathways Transitional Program.

Eight people have moved into the complex so far, and officials said they expect it to be full very soon.

“It’s absolutely extraordinary, it is beautiful and it is comfortable,” said Polly Williams, United Friends president. “We couldn’t be happier for it.”

The Pathways team will be there to assist the young adults with counseling and work with them to find long-term employment. The studio units are at affordable housing prices, so the tenants can maintain a living arrangement as they prepare to enter the independent work world.

Foster care is over for children once they turn 18, which can mean high school students are sometimes put on the street before they even graduate. According to United Friends, 36% of foster youth become homeless within 18 months after leaving the system.

“It’s a lot to assume that any 18- or 19-year-old can go out and get housing and a job without any support,” Williams said. “Everyone agrees that these negative statistics (for foster children) don’t have to be.”

The Pathways program has kept in contact with 77% of its students since it began 10 years ago. Of its former participants, 85% are in stable housing and 67% are still employed.

“What makes us unique is the extent to which we go and create a relationship between the youth and the program,” Williams said.

The Palace is the sixth location of its type that United Friends is running in Los Angeles County.

Several years ago, when the opportunity to buy the building from the city arose, LINC Housing was looking to partner with a good cause, said Hunter Johnson, LINC president and CEO.

“We consciously did that and started looking for a project to invest in,” he said. “The city put in a request for alteration, we responded and we were fortunate enough to be chosen.”

LINC restored the Palace while keeping its historic look intact — the interior is very modern with top-level environmental and sustainability accolades. It is two stories and has a special roof deck, counseling offices, a computer station, social room and a classroom. There also is a commercial space that will be used by the company iCracked �� which will serve as an iPhone repair service center that could employ the youngsters living in the building.

“We’re thrilled to have it be up and running, and for the overall community this should be a great improvement to the neighborhood,” Johnson said.

Fourth District Councilman Patrick O’Donnell said it was good to see so many different businesses, organizations and government agencies come together to complete this project.

“This is a very important program because it addresses a largely unmet need — those kids who are cut off from foster care,” he said. “When a kid is cut loose like that, they’re sitting in a boat without a sail.”

O’Donnell said the building should have a positive impact on the surrounding neighborhood and Anaheim Street, and that he was happy that United Friends was involved, especially because the Pathways program includes not just support, but accountability.

“The homeless problem is a much more complex issue than a guy walking a shopping cart,” he said. “As a high school teacher I have many kids who are in foster care and I’m always concerned who is going to watch out for them.”

For more information on United Friends of the Children, visit www.unitedfriends.org.

Copyright © 2012 Gazettes.com
Reprinted with permission.

Turning it all around at Long Beach’s Palace Hotel

LONG BEACH PRESS-TELEGRAM

By Greg Mellen, Staff Writer
February 22, 2012

LONG BEACH – This is the kind of homecoming Barry B. could never have imagined.

As a youth who was placed in foster care at the age of 4, Barry, who asked that his last name not be used, would visit his mother at the Palace Hotel in Long Beach.

At that time it was in its last days as a flophouse and notorious den for drugs and prostitution.

Today, the 1929 building has been completely gutted, refurbished and turned into 13 units of housing for young adults who were part of the foster care system.

As the Palace Hotel celebrated its grand opening Wednesday, Barry B. said he was having trouble holding in his excitement because he scored the corner apartment.

“It is so crazy. I couldn’t control myself. When I saw it, I was, ‘Yes, yes,'” the aspiring entertainer said, adding that he felt as if he were in an episode of “Extreme Makeover: Home Edition.”

“I always knew this building,” Barry said, noting that his mother was involved in drugs and his father was in jail for most of his childhood.

Whatever negative connotations the place might have once held are gone now. Barry, who plans to study theater at Long Beach City College, holds down several part-time jobs and performs with a dance group, said he wants to be a role model for those to follow at the Palace Hotel.

“We don’t have control of the past,” he said. “But we don’t have to succumb to that.”

If anything, Barry says the tribulations of his young life have instilled in him the drive and determination to succeed.

As the legacy of redevelopment in Long Beach dwindles down, the Palace Hotel project is one of the feel-good projects that highlights what redevelopment was meant to be. The Palace Hotel was a poster child for urban blight when the Long Beach Housing Development Company purchased it in 2005.

Now it is the city’s only housing unit for young adults coming out of foster care. The $6.2 million project is geared to help one of the area’s most dangerously at-risk groups. It is estimated that of the 1,400 to 1,500 youths who leave foster care each year in Los Angeles County, a staggering 36 percent face homelessness and many more struggle with chronic unemployment within two years.

Mayor Bob Foster and Councilman Patrick O’Donnell, who both spoke at the event, said the project taught them about the dire issues foster care youths face as they are cast into society at the age of 18, with little or no preparation.

Barry said he suffered from three days of homelessness and it was enough to teach him he never wanted to be in that position again.

Residents at the Palace Hotel will pay rent and stay there for about 18 months as they prepare to become independent. The youths will also receive social, educational, mental health, job training and life-skills services, offered by Pathways Transitional Living run by the nonprofit United Friends of the Children.

A portion of the ground floor was converted into a storefront that will be home to iCracked, a company that repairs damaged iPhones, iPods and tablets. A.J. Forsythe, the young CEO who started the company when he was in college, said he hopes to hire three or four of the residents to work at the store.

As Barry talked to the crowd of about 150 who went for the ribbon-cutting, he said he wanted to make them proud.

“I want to be an example of using all Pathways has to offer,” he said. “I want you to remember me. Remember Barry and look forward to seeing me on TV or the movies.”

Copyright © 2011 Press-Telegram
Reprinted with permission.

Long Beach Heritage names art deco fan Preservationist of the Year

LONG BEACH PRESS-TELEGRAM

By Greg Mellen, Staff Writer
February 4, 2012

LONG BEACH — Two of John Thomas’ passions are art deco and the Queen Mary, as anyone who has tried to navigate through the mementos in his home can attest.

So it is only fitting that when Thomas is honored as Preservationist of the Year by Long Beach Heritage, it will be in the Grand Salon of the Queen Mary.

Thomas heads a list of recipients who will be honored at the organization’s 2012 Awards Benefit and Gala on Feb. 23.

Thomas, who has a long history with Long Beach Heritage, serving on its Board of Directors as a president and vice president of advocacy, will be recognized for his contributions and dedication to historic preservation.

Thomas was a leader in persuading the city to add a historic preservation element to its General Plan, and garnered support for an ordinance that allows historic buildings facing demolition to be red-flagged for reuse projects.

Thomas was also the chair of the Long Beach Redevelopment Agency until it was closed Feb. 1, and he is president of the Art Deco Society of Los Angeles and the Bluff Heights Neighborhood Association.

The history buff also regularly leads architectural tours of downtown Long Beach and co-authored “Images of America RMS Queen Mary,” and “Long Beach Art Deco” with Suzanne Tarbell Cooper and J. Christopher Launi.

Other recipients are:
The Lafayette Home Owners Association for the repainting of the exterior of the 1928 Art Deco hotel.
Claudia Jurmain, for her book “Rancho Los Alamitos — Ever Changing, Always the Same,” detailing the history of the ranch from the American Indian Povuu’nga tribe to the Bixby family.
Craig and Christine Bouma for the restoration of their 1936 Spanish Revival home.
Todd and Ranae Saunders and Matt and Krysta Leaver for their restorations of midcentury homes.
Hugh Gibbs & Donald Gibbs Architects for the Significant Architectural Achievement award in producing landmarks and commercial and residential structures throughout Long Beach and Southern California.
LINC Housing for refurbishing the 1929 Palace Hotel, which has been converted to transitional housing for young adults leaving foster care.
The California Heights Neighborhood Association for restoring 1936-era lampposts.
The Long Beach Symphony for its Concerts in Long Beach Historic Sites program, which brings music and architecture together for the benefit of Long Beach residents.

Information and tickets are available at 562-493-7019 or www.lbheritage.org.

Copyright © 2011 Press-Telegram
Reprinted with permission.

Construction under way on Whittier’s first low-income rental housing project

WHITTIER DAILY NEWS

By Mike Sprague, Staff Writer
December 31, 2011

WHITTIER — Construction is under way on the city’s first low-income rental housing project for non-senior citizens.

LINC Housing Corp., a Long Beach-based affordable housing developer, is building Mosaic Gardens, a 21-unit, three-story, 27,900-square-foot development on a vacant half-acre parcel at the southeast corner of Pickering Avenue and Philadelphia Street.

“It’s going to be beautiful,” said Hunter Johnson, LINC’s president and chief executive officer. “It’s the first housing project built under the Uptown Specific Plan.”

The property has been vacant since the 1987 Whittier Narrows earthquake.

The project is expected to be completed in about a year, Johnson said.

Whittier Councilman Joe Vinatieri said the project is a great one for the city.

“It’s in an area near Whittier High School and will positively impact property values,” Vinatieri said.

Vinatieri said he believes LINC will do a good job with the project.

“I have great faith in LINC,” he said. “We have a long track record with them. They’ve done an outstanding job at the Seasons at the Hoover.”

Rents will range from an estimated $523 to $1,266 per month, depending on household income.

LINC will not take applications from prospective renters until the project is four to five months from being completed, Johnson said.

There will be six one-bedroom, eight two-bedroom and seven three-bedroom units.

They will be rented to 14 households who have very low incomes and six who have moderate incomes.

While these numbers are likely to increase because of inflation, currently to qualify as very low income, a family of three would make no more than $22,380 annually.

The same sized family with a moderate income would make no more than $44,000.

Residents will save more than just on rent, Johnson said.

“They should be able to save on utility costs and we’ll have a variety of services,” he said.

Funding for the $9.4 million development comes from a number of sources including a loan from the city using federal housing and redevelopment funds and tax credit equity from Bank of America.

The property will include a large community space where residents will enjoy special events and resident services programs.

LINC will provide a number of services, including after-school programs, homework center, and help with health, fitness and finances.

Copyright © 2011 Whittier Daily News
Reprinted with permission.

FutureBuild conference in downtown LA focuses on financial benefits of sustainable development

89.3 KPCC

By Brian Watt
February 5, 2013

At the FutureBuild Summit, real estate developers, city leaders and planners and green technology experts focused on the financial benefits of sustainable development in Southern California.

“For clean and green technologies to move from the cutting edge to mainstream, we must ensure that making buildings sustainable is financially attainable,” said developer Rick Caruso during the opening session.

He used his successful Los Angeles development — The Grove — as an example.

For several years, said Caruso, he’s tried to install solar panels on the roof of The Grove’s parking structure. But so far, he said, “what makes perfect ecological sense does not make any economic sense.”

Caruso said he’s not giving up, but government can do its part with more financial incentives and less bureaucracy. He said urban centers like Los Angeles should foster such sustainable projects, as their populations and economic output continue to grow.

The Urban Land Institute, Los Angeles organized the conference, partnering with VerdeXchange. One of the breakout sessions focused on adding energy-saving features to appartment buildings and affordable housing communities.

Hunter Johnson, president of the Long Beach-based non-profit LINC Housing, held up a shower head that saves one of his properties a lot of water and money. He spent about $8,000 to install the shower head in the each of the 274 units at the City Gardens affordable housing community in Santa Ana.

“We believe we’ve saved roughly $11,000 in water usage, gas usage, and sewer bills,” Johnson said. “For an $8,000 investment, it means we’re going to get our money back within a year, and that’s a pretty good deal.”

Copyright © 2013 Southern California Public Radio
Reprinted with permission.

Huntington Park apartments will be home for low-income families, youths

LOS ANGELES WAVE

By Wave Staff
January 31, 2013

HUNTINGTON PARK — Mayor Andy Molina and the director of the Los Angeles County Department of Mental Health can say they literally had a hand on the physical building of 24 affordable apartments.

Each took a turn behind the controls of a construction Bobcat to help break ground for Mosaic Gardens at Huntington Park, converting a vacant 55-room motel at 6337 Middleton St., into apartments for low-income families, including transitional age young people between 18 and 24.

Funding for the $10 million project will come from a number of sources, including the city, Los Angeles County, private foundations, banks and private developers, a project representative said.

Construction began Jan. 23 with completion targeted for early 2014. “We know our community needs secure, stable housing for our families and young adults who are working to make their lives better,” Molina said at the ground breaking ceremony. “It’s difficult to attend school or hold down a steady job if you don’t have a roof over your head. We can’t wait for this new community to be completed.”

Fifteen of the units will be reserved for transitional age youth, including former foster children, who are currently being served by the Department of Mental Health, the representative said.

“I’m proud to be here today to celebrate this important partnership,” said Marvin J. Southard, director of the Department of Mental Health. “It’s very difficult to help people work through their mental health challenges if they don’t have a healthy, stable home.

“Although I’m happy to participate in today’s milestone, I’m even more excited to come together again in about year for the grand opening, when we will meet the new residents and see firsthand how this type of work truly changes lives for the better,” Southard said.

The renovated building will include 10 studios units, six one-bedroom apartments, four two-bedroom units and four three-bedroom apartments, including a two-bedroom manager’s unit, the representative said.

Each apartment will feature appliances, carpeted bedrooms and central air conditioning.

The current layout of the motel includes a parking lot that is partially under the building and partially exposed. The construction team will create a courtyard on an elevated deck above the parking area.
The courtyard will include a playground, landscaping, benches and barbecues, providing a comfortable area for residents to relax and connect.

A community room, private counseling rooms and a computer lab will provide the space for residents to participate in social, education and skill building opportunities.

“LINC Housing is committed to bringing beautiful, stable homes to people who need them most,” said Hunter L. Johnson, LINC’s president and CEO.

“This public-private partnership is a model for how we can come together to develop a community that not only serves the local residents by providing housing, but also contributes to the neighborhood overall by beautifying an abandoned building that will soon become a vibrant community.”

An on-site resident services program, designed to meet the specific needs of the residents, will also be an important part of the community.

The program will be facilitated by LINC’s resident services group, LINC Cares. A resident services coordinator will facilitate programs to address common educational and economic needs of the residents.

The apartments are for families earning between 30 and 50 percent of the area median income for Los Angeles County, as established by the U.S. Department of Housing and Urban Development.

Rents aren’t set yet but will likely range from $448 to $1,110 a month, based on unit size and resident income, the representative said.

Property management will screen all tenants. Every resident will need to meet income qualifications and pass criminal background and credit checks.

Funding for the development comes from a number of sources including the city of Huntington Park, Los Angeles County, the Housing Authority of the County of Los Angeles, the county and state Departments of Mental Health, the Federal Home Loan Bank’s Affordable Housing Program, a construction loan from U.S. Bank, and tax credit equity from Raymond James Tax Credit Funds Inc.

Funding for the acquisition of the site was also made possible by support from the California Endowment, Enterprise Community Partners and the JPMorgan Chase Foundation, the representative said.

The general contractor is Advent Companies, and the building was designed by Killefer Flammang Architects.

Anyone interested in being contacted when applications are available can call LINC Housing at (562) 684-1100.

Clients of the county Department of Mental Health who would like to apply for an apartment should contact their case manager, the representative said.

Copyright © 2013 Los Angeles Wave
Reprinted with permission.

Growing Pains for America’s Youth

AFFORDABLE HOUSING FINANCE MAGAZINE

By Donna Kimura
January 18, 2013

Barry B. has a place to call home.

The 21-year-old has lived at The Palace, a new supportive housing development for youths aging out of foster care in Long Beach, Calif., for the past year.

“My apartment has meant everything to me,” he says. “This apartment has definitely given me the stability to continue school, work, and have an opportunity to better my life, my future, my career. It’s hard to go into class and try to focus on what the professor is lecturing on when you are worried about where you are going to sleep at night.”

Barry works at Starbucks, serves as a peer advocate at The Alliance for Children’s Rights, interns with a film producer, and studies performing arts and business at the local community college.

Prior to moving into The Palace last year, he was staying in a transitional housing program, and before that he was homeless.

“I don’t know where I would be [without The Palace],” he says. “I would probably be another statistic, another foster youth being homeless.”

Instead, he takes pride in being able to tell his friends, “Let’s go to my apartment.”

Although the number of young people experiencing homelessness is hard to determine, the best available data reveals that about 150,000 youths between 18 and 24 years old use the adult homeless service system each year, according to the National Alliance to End Homelessness.

More shocking: 60,000 families headed by a young parent (between 18 and 24) use the adult family system each year.

Increasing activity

Barry’s home at The Palace was created by LINC Housing, a longtime affordable housing developer. The nonprofit converted an abandoned 1929 hotel into 13 studio apartments for youths aging out of foster care.

“It is a population in dire need of housing,” says Hunter Johnson, LINC president and CEO.

Nationally, about 30,000 youths age out of foster care each year at 18 or, in some states, 21. According to one estimate, 36 percent will be homeless within 18 months of leaving the system.
Another 20,000 young adults age out of the juvenile justice system every year.

Their age, lack of preparation for the job market, and no family support make them at risk for homelessness. Those who leave foster care before their 18th birthday cannot legally sign a lease. And, those who are 18 and older often cannot find landlords willing to rent to them.

That’s why affordable housing developers are stepping up to serve this hard-to-house population.

New York City, with innovative developers like Common Ground and the Lantern Organization, has been an early leader in providing supportive housing for young adults, but other areas are seeing new projects rise.

There is a growing amount of activity, particularly in Los Angeles, where 187 units have recently come online or will soon open. About 54 percent of apartments are in scattered-site or mixed-tenancy developments while the rest are in single-site projects exclusively for transition-age youths, says Richard Cho, director of innovations and research for the Corporation for Supportive Housing (CSH).

“The field is too new to say what the best models are, but what’s nice is we are seeing a greater variety of choices,” Cho says. Developments targeting homeless lesbian, gay, bisexual, and transgender youths have also opened their doors in recent years.

LINC is developing its second project for transition-age youths, this time going a step further to serve teen moms and other young adults with children of their own. Mosaic Gardens at Huntington Park will feature 15 apartments for this group plus nine units for the general population.

In Northern California, Affordable Housing Associates (AHA) has developed two communities targeting young adults.

In 2008, AHA developed the 79-unit Madison at 14th Apartments in Oakland. The team set aside 20 apartments for youths at risk of homelessness while the other 59 apartments serve low-income families and seniors.

The organization took a different approach on its next project, making all 15 apartments at its Harmon Gardens development in Berkeley for transition-age youths.

“Without a family support network, without social networks, without income, there are so few housing options,” says Susan Friedland, executive director of AHA. “Landlords aren’t willing to take a chance without parents to guarantee rents.”

Because Harmon Gardens has been open for only a year, it is too early to tell which model has the best outcomes, according to Friedland.

“What we have learned is that supportive services within the housing works best for the youth and that the services needed to keep youth housed are quite intensive,” she says.

The general argument for the integrated housing model is that it is more like the real world, and the youths can learn from new role models. An argument for the exclusive housing model is that the residents will feel more supported among their peers.

In Florida, Miami-based Carlisle Development Group has made it a point to try to include post-foster care individuals into several of its larger affordable housing communities, starting in 2006 with 20 units at its 208-unit Santa Clara II development in Miami.

CEO Matt Carlisle successfully pushed for a wider interpretation of the Internal Revenue Service residency rules to allow these young adults to rent apartments in low-income housing tax credit (LIHTC) developments.

Many of them are in school, but full-time students are generally not eligible to rent a LIHTC unit. However, there are some exemptions for certain people, including those receiving job training. Greer said it should also include those in Florida receiving Road to Independence Scholarships, and the state began to allow the housing to include those youths.

On the national level, legislation has also been introduced to allow formerly homeless full-time students to be eligible for LIHTC apartments.

Financing issues
The biggest challenge of building supportive housing for youths and other special-needs populations is that these projects have to be financed with little or no permanent debt.

During the recession, the unemployment rate for young workers reached record levels. Residents have limited incomes, and that means rents have to be kept extremely low and operating budgets will be tight.

To finance the approximately $6 million Harmon Gardens development, AHA received a reservation of housing tax credits from the California Tax Credit Allocation Committee.

However, the economic downturn at the time was causing the LIHTC market to struggle, and investor interest was limited.

To address this problem, the American Recovery and Reinvestment Act of 2009 made available funds to replace investor equity. AHA, which is merging with another nonprofit, Satellite Housing, was able to receive more than $3 million in exchange funds.

The team also assembled funding from other sources, including the city of Berkeley’s housing trust fund and state Mental Health Services Act money.

The Palace had a similar price tag at $6.2 million. LINC financed the project through several sources, including nearly $3 million from the Long Beach Housing Development Co.

nd like Harmon Gardens, the project also received a reservation of LIHTCs and then utilized the credit exchange program to get about $2.6 million.

The limited incomes of the residents mean that rental housing vouchers are usually needed.

Since 1992, the Department of Housing and Urban Development’s (HUD) Family Unification Program (FUP) has provided Sec. 8 housing choice vouchers to families whose children have been placed in foster care or are at risk of placement because of issues related to housing. In 2000, FUP eligibility was expanded to former foster youths between the ages of 18 and 21 whose housing is inadequate and who were at least 16 when they exited foster care.

There is no time limit for families, but youths using FUP vouchers are limited to 18 months. No new FUP vouchers have been issued since 2010.

At AHA’s Harmon Gardens, rental subsidies are provided through either project-based Sec. 8 vouchers or the state Mental Health Services Act program. Both allow residents to pay just 30 percent of any income they have for rent.

LINC has also secured Sec. 8 vouchers for its residents at The Palace.

Best practices
A major focus of these housing developments is providing the young residents with extensive services.

One of the big issues remains how to best match service-supported housing with the transition-age residents. Some of the young adults will have a multitude of challenges and may need longer-term assistance, says CSH’s Cho.

One of the moves that Carlisle Development likes to make is to have tenants sign an agreement with a social services provider, says COO Kenneth Naylor. It is often just symbolic, but it emphasizes the importance of taking part in the programs that are offered.

Separately, it’s also been very helpful when developments have had strong access to public transit and employment, he says.

At The Palace, LINC has teamed with United Friends of the Children, a nonprofit that specializes in helping foster children and former foster children. Residents participate in the organization’s Pathways program, which teaches important life skills such as financial literacy, conflict resolution, and stress management. There is also advocacy counseling, career services, and educational guidance.

In renovating the old hotel, LINC included extra space to accommodate the different supportive services. The firm also equipped the site with more computers than at its other housing developments because residents may be in school and will need the computers to do homework or to apply for jobs.

AHA has also partnered with organizations that specialize in working with the young adults to deliver services. The Fred Finch Youth Center delivers programs to those at Harmon Gardens, and First Place for Youth is working closely with residents at Madison at 14th. Both developments have a full-time case manager and are supported by additional staff from the service organizations.

“It is absolutely essential to have robust social services,” says Friedland. Efforts are under way to refine a typology of youth homelessness to match the level of service to the level of need, says Cho. CSH is working to pilot a triage tool based on current research.

“We hope to learn more with the newer models that are being created,” he says.

That will help make sure that Barry B. and other youths get the housing and services they need for a better life.

“What’s nice is we are seeing a greater variety of choices.”

—Richard Cho, director of innovations and research, Corporation for Supportive Housing

Copyright © 2013 Affordable Housing Finance Magazine
Reprinted with permission.

Whittier low-income housing complex opens doors for first time

WHITTIER DAILY NEWS

By Venusse Navid, SGVN
October 26, 2012

WHITTIER – To many, the lottery is just another source of financial income, but for a select few, it’s a way to receive a home.

The chosen few were 20 families, out of more than 500, who were placed in a lottery for the chance to live in Whittier’s first low-income, affordable housing community, Mosaic Gardens at Whittier.

The families were selected based on salaries ranging from $18,500 to $52,000 and household size.

The complex which offers energy-efficient utilities and a safe environment is settled on the corner of Pickering Avenue and Philadelphia Street.

Officials from LINC Housing, Bank of America Merrill Lynch and the city, along with other partners, attended a grand opening celebration of the 21-unit complex Thursday.

“This is where people need to be, near schools and markets,” Hunter Johnson, president and CEO of LINC Housing said.

LINC Housing, which is known for its previous project, Seasons at Hoover, targeted the specific location in compliance with the Uptown Specific Plan.

“This is a location that we and city officials agreed would have the biggest impact for the city and we’re proud to have a lovely project. The plan is a signal that the area should be regenerated,” Johnson said.

Johnson hinted that LINC Housing, a nonprofit company, is interested in developing additional environmentally-friendly projects in the city, but will have to overcome the challenge of finding funding to proceed.

“We will have to find replacement sources for federal funding, which played a significant part in developing Mosaic Gardens,” he said.

12 families have already moved into the facility.

Valerie Hernandez, 32, and her three daughters, Rosalie Avalos, Jovanna Avalos and Ava Avalos, all under the age of 9, spent their first night at their new home Wednesday.

“It’s an amazing feeling and we were thrilled to move in,” she said.

About 18 of the 20 families are originally from Whittier.

“There was no preference in picking families from Whittier, but there is a lot of demand in Whittier for housing like this,” Mayor Owen Newcomer said.

Councilman Bob Henderson wandered around the complex taking in Whittier’s newest housing venue.

This location has been vacant since the 1987 Whittier Narrows earthquake.

“It’s of impressive quality and in the path of two bus routes which makes it perfect for a low-income project,” he said.

The project was started almost a year ago and includes six one-bedroom, eight two-bedroom and seven three-bedroom units, all of which range in rent from an estimated $523 to $1,266 per month, depending on household income.

The facility includes after-school programs, a homework center and help with health, fitness and finances.

Funding for the $9.2 million development came from a number of sources including a loan from the city, using federal housing and redevelopment funds, and tax credit equity from Bank of America.

The remaining families will move in by Nov. 1.

“This is not just about putting a roof over someone’s head, but making their lives better,” Johnson said.

Copyright © 2012 Whittier Daily News
Reprinted with permission.

Whittier’s first low-income project seeks ‘environmental’ status

WHITTIER DAILY NEWS

By Mike Sprague, SGVN
September 18, 2012

WHITTIER — The developer of the city’s first low-income project wants it also to be the first private home development in Whittier to receive environmental-friendly certification from a national agency.

LINC Housing Corp. which is building Mosaic Gardens, a 21-unit, three-story, 27,900-square-foot development, 12524 Philadelphia St., wants to receive a Leadership in Energy and Environmental Design or LEED certification for the project.

The certification from the U.S. Green Building Council would provide independent, third-party verification that the complex was designed and built using strategies aimed at achieving high performance in key areas of human and environmental health, according to its website.

LINC will apply once the development is complete.

“I think that’s wonderful,” said Mayor Owen Newcomer. “It’s makes good business sense, it’s good for the community and good for the environment.”

The $9.2 million project, that is expected to open in October, has a number of measures considered environmentally-friendly, such as tankless water heaters, low-toxicity paint, erosion control measures, native plants that need little water, energy-efficient appliances and bike racks, said Allison Riley, senior project manager.

Other elements include carpet made of recycled materials; water-efficient sinks, showers and toilets; and a roof that reflects the sun’s heat, Riley said.

Riley said the residents also will be trained in ways to recycle and clean, using green techniques.

She said the “green” improvements will pay for themselves over a 10-year period.

“You had about 10 percent in costs to meet the LEED standards,” Riley said. “But it leads to more durability of the building itself and reduces our overall energy costs. We expect to save about 10 to 15 percent.”

City Manager Jeff Collier said the project will be a good addition for the city.

“We’re excited about it as a whole and what it does for a site that’s been vacant since the 1987 earthquake,” Collier said.
“A lot of folks have a perception of work force that is cheap or doesn’t meet the same standards as a market-rate unit,” he said. “This project has been built to a very high standard.”

LINC is still seeking applicants to apply for one of the 20 spots. One of the units will be for the manager.

More than 300 have applied so far.

LINC will accept names through Friday for the waiting list and eventual lottery.

Call 855-813-5643 for information and to apply.

Rents will vary from $596 for a one-bedroom unit to a $1,265 for a three-bedroom unit, depending on household income.

Income levels could range from $17,730 to $62,760, depending on the unit and size of family.

Copyright © 2012 Whittier Daily News
Reprinted with permission.

Owner plans major apartment upgrades using $9M in bonds from city

SACRAMENTO BUSINESS JOURNAL

By Sanford Nax, Staff Writer
August 17, 2012

Taylor Terrace apartments could be getting a substantial facelift three years after new owners stepped in.

An affiliate of Long Beach-based LINC Housing Corp. bought the 168-unit complex on Taylor Street, just north of Interstate 80 near Rio Linda Boulevard, for $7.5 million. LINC completed minor renovations, such as repairing dry rot and improving lighting. Now the new owners are ready for some serious upgrades with the help of $9 million worth of tax-exempt mortgage revenue bonds issued by the city of Sacramento’s Housing Authority and approved by the City Council on Tuesday.

The owner plans to combine the bonds with other funds, including a Sacramento Municipal Utility District energy-efficiency incentive grant and a deferred developer fee, to refinance the property and replace roofs, paint, repair cabinets and install new windows, more efficient air conditioners, insulation and appliances.

The apartments were built in 1994 and consist of one, two and three-bedroom units in 15 two-story buildings. The complex targets low-and moderate-income families. The construction work, which could start in January 2013, is expected to create 46 jobs and provide a $6.2 million boost to the local economy.

Sanford Nax covers real estate, planning, development, construction and economic issues for the Sacramento Business Journal.

Copyright © 2012 Sacramento Business Journal
Reprinted with permission.

Fresno development trust acquires apartments

THE BUSINESS JOURNAL

Written by Business Journal Staff
July 12, 2012

The Community Development Trust of New York, a private real estate investment trust and LINC Housing Corporation, a Long Beach-based nonprofit builder of affordable housing for low-income families, seniors and people with special needs, have partnered to purchase Pleasant View Apartments in Fresno.

The deal, which will facilitate rehabilitation of the apartment complex, represents the Community Development Trust’s first acquisition with a nonprofit partner.

The property is a 60-unit, 100 percent affordable development serving both seniors and low-income families living in homes that range in size from one to four bedrooms. It is located at 3555 N. Pleasant View, which is just south of West Dakota Avenue.

The partnership will allow the Community Development Trust and LINC to provide new benefits for residents of Pleasant View Apartments in the form of social services. LINC’s resident services affiliate, LINC Cares, will provide service coordination and on-site activities such as tutoring, health and wellness clinics and special events for the first time at the property.

In addition, the partnership will allow for upgrading of Pleasant View Apartments, including full kitchen renovations to each unit, roof and window replacements and a new community center and playground for residents.

“As CDT’s first equity purchase with a nonprofit partner, our investment with LINC, a well-established developer of affordable housing, is an important milestone for our organization,” said Joseph Reilly, the Community Development Trust Fund’s president and chief executive officer.

Brian Dowling, the trust fund’s president of community investments, added that Pleasant View Apartments presents an opportunity to help address the city’s low cost housing needs.

Copyright © 2011 The Business Journal
Reprinted with permission.

Central Fresno apartment complex sells for $2.5m

THE FRESNO BEE

July 12, 2012

A national real estate investment trust company and a Long Beach-based nonprofit affordable housing builder have partnered to buy the 60-unit Pleasant View Apartments in central Fresno for a little more than $2.5 million.

The complex is on Pleasant Avenue just north of Shields Avenue and east of Weber Avenue.

Community Development Trust and LINC Housing Corporation plan to renovate the complex for seniors and low-income families.

Plans are to install new kitchens, replace the roofs and windows and build a new community center and playground. The partnership will also allow the owners to provide residents with on-site activities such as tutoring, health and wellness clinics and special events.

Copyright © 2012 The Fresno Bee
Reprinted with permission.

Greening for Greenbacks

AFFORDABLE HOUSING FINANCE MAGAZINE

By Christine Serlin
July/August 2012

HUNTER Johnson started working at affordable housing firm LINC Housing Corp. 15 years ago, the first project he worked on was City Gardens. The Long Beach, Calif.-based nonprofit purchased the Orange County, Calif., property in 1996 with tax-exempt bonds and 4 percent low-income housing tax credits, with Irvine, Calif.-based Edison Capital as the investor. At the time, a fair amount of rehab had been done, and the property has been wellmaintained over the years.

When City Gardens needed refinancing this year — the project had reached its 15th and final year of LIHTC compliance — Johnson wanted to bring the property upto- date and include some green retrofits. He found the capital for improving the old community in a brand-new place. LINC and Cleveland-based Bellwether Enterprise Real Estate Capital closed the first loan in the Green Refinance Plus program, a partnership between Fannie Mae and HUD. The program allows affordable housing owners to refiinto mortgages that include additional financing for energyefficient upgrades. It offers up to 85 percent loan to value and a debt-service coverage ratio as low as 1.15x, 10 basis points lower than the standard rate.

The $19.4 million refinance loan of the 274-unit City Gardens closed in April with a 10-year term and 30-year amortization. The total rehab cost is $2.8 million, including approximately $520,000 for the green retrofitting.

Jay Helfrich, a senior vice president at Bellwether Enterprise, says “Year 15” deals are prime targets for the program. “[They] can benefit greatly from higher loan proceeds that come out of this program,” he says. “Developers upgrading everything from lighting to appliances that are more energy efficient and water conserving makes a lot of sense.”

Improvements for City Gardens include replacing inefficient gas-fired furnaces; installing low-flow plumbing fixtures and a solar hot-water heating system; and upgrading to a more efficient irrigation system. The team hopes to have the rehab done by the end of the year or the first quarter of 2013.

As part of the program, energy costs must be monitored, so the team is working with residents to track the savings monthly through Energy Scorecard software. They’re also educating community children about the rehab.

“We have an afterschool program,” says Johnson, now LINC’s president and CEO. “They’ll start learning about the green improvements and the effects they’ll have on their homes and the environment. That’s going to be a critical piece through construction.”

Christine Serlin is executive editor of APARTMENT FINANCE TODAY’s sister magazine AFFORDABLE HOUSING FINANCE.

Copyright © 2012 Affordable Housing Finance Magazine
Reprinted with permission.

First Green RefiPlus Loan Closes

AFFORDABLE HOUSING FINANCE MAGAZINE

By Christine Serlin
June 2012

SANTA ANA, CALIF. — Nonprofit LINC Housing Corp. and Enterprise Community Investment, Inc., have closed the first loan under the Green Refinance Plus program, a partnership between Fannie Mae and the Department of Housing and Urban Development.

The program, which was announced a year ago, allows owners of existing affordable rental housing developments to refinance into mortgages that include financing for energy-efficient upgrades.

The $19.4 million refinance loan, which closed in April with a 10-year term and 30-year amortization, brings the City Gardens development full circle for Hunter Johnson, president and CEO of LINC. It was the first project he worked on when he started at the company more than 15 years ago. LINC purchased the Orange County property, which was built in 1969, in 1996 with tax-exempt bonds and 4 percent low-income housing tax credits with Edison Capital as the investor. At the time, a fair amount of rehab had been done, and it has been maintained over the years.

Now, Johnson has taken the 274- unit family development all the way to Year 15 and refinancing.

The total rehab cost is slated to be $2.8 million, including approximately $520,000 for the green retrofitting. The rest of the loan proceeds include: $11.6 million toward existing debt, $4.1 million to purchase the limited partner’s interest, and the remainder for replacement reserves and other fees.

Jay Helfrich, director of multifamily mortgage finance at Enterprise, adds that this deal was “a perfect example in timing” for LINC and that Year 15 deals are prime targets for this loan program.

“Where the property is coming up to Year 15, it can benefit greatly from higher loan proceeds that come out of this program,” he says. “And I think that developers that are upgrading everything from lighting to irrigation to water fixtures to appliances that are more energy efficient and water conserving make a lot of sense.”

Improvements for City Gardens include the replacement of old, inefficient gas-fired furnaces with Energy Star-rated furnaces, roofs, and balconies; the installation of low-flow plumbing fixtures, energy-efficient lighting, and a solar hot water heating system; the addition of green landscaping; and an upgrade to a more efficient irrigation system. The development team is being aggressive and hopes to have the rehab done by the end of the year or the first quarter of 2013.

In terms of energy efficiency, Johnson says he anticipates a combined 20 percent savings from the retrofits for the common area and in the residents’ units. As part of the Fannie Mae loan program, energy costs must be monitored, and the development team is working with residents to put together a program to track the savings on a monthly basis through Energy Scorecard software.

The team also is working to educate the children in the community about the rehab.

“We have an after-school program, and we’re going to get the children involved,” says Johnson. “They’ll start learning about the green improvements and the effects that they’ll have on their homes and the environment. That’s going to be a critical piece through construction.”

And beyond this rehab, both partners will continue to push ahead with their green missions.

Enterprise is working to green all affordable housing by 2020, and LINC has a major initiative planned to retrofit its entire portfolio to be more energy efficient over the next several years.

Copyright �� 2012 Affordable Housing Finance Magazine
Reprinted with permission.

Preserving Multifamily Housing through the Green Refinance Plus Program

PD&R EDGE

April, 2013

The Green Refinance Plus program, launched in 2011, enhances the HUD/Fannie Mae Risk Sharing Initiative that aims to preserve multifamily housing. The Green Refinance Plus loans spread risk between FHA and Fannie Mae and enable at least 5 percent of the loan amount to go toward energy-efficiency improvements. HUD “takes the ‘top loss’ position” on the amount borrowed specifically for energy-efficiency improvements, explains Theodore Toon, director of FHA Multifamily Development. HUD also has an oversight role to ensure that improvements and upgrades address green building and energy efficiency. In June 2012, Fannie Mae and FHA initiated the first Green Refinance Plus loan for $19.4 million to Limited Income Communities (LINC) Housing’s City Gardens Apartments in Santa Ana, California (described below).

Assistance for Refinancing and Energy-Efficiency Upgrades
Owners of multifamily housing typically refinance their mortgages every 10 to 15 years. Older developments, however, can be difficult to refinance, which in turn makes it hard for owners to make capital improvements and energy-efficiency upgrades. In exchange for helping to refinance a property, the Green Refinance Plus program, like its parent program, requires owners to maintain their developments’ affordability restrictions for the duration of the loan and supports sustainability upgrades that save money for tenants and owners.

When Fannie Mae and FHA announced the program, they set a goal to originate $100 million in loans, says Bob Simpson, head of Fannie Mae’s affordable multifamily division. That amount is not a hard cap, says Simpson; Fannie Mae will offer the loans according to the market’s needs, and there is no minimum loan amount. Since the program’s launch, Fannie Mae and FHA have issued about $40 million in Green Refinance Plus loans to three properties. To qualify, a property must be at least 10 years old and have at least 5 units.

Children encourage sustainability at City Gardens Apartments.
Image courtesy of Gary Krueger Photographer.

City Gardens Apartments received the first Green Refinance Plus loan, which financed water-conservation improvements.
Image courtesy of Gary Krueger Photographer.

Green Property Needs Assessment (PNA)
Applicants for the Green Refinance Plus program must complete a Green PNA, an assessment that identifies energy- and water-efficiency opportunities that match “the property’s needs and the owner’s strategy,” says Chrissa Pagitsas, program manager for Fannie Mae’s Multifamily Green Initiative. These assessments identify energy-efficiency operations or capital improvements that will reduce the property’s aggregate energy use by at least 20 percent. Typical capital needs identified by a Green PNA might include buying ENERGY STAR appliances, replacing existing heating and cooling systems with more energy-efficient ones, caulking windows, and installing timers on water irrigation systems. Although the Green PNA does not exclude solar generation and other renewable energy items, Pagitsas explains that the assessment focuses on the most cost-effective improvements that also upgrade the property’s physical condition.

City Gardens Apartments
City Gardens Apartments in Santa Ana, California was built in 1969, “when gasoline was going for maybe 35 or 40 cents a gallon” and there “was not a lot of focus on energy efficiency,” says LINC Housing president and chief executive officer Hunter Johnson. The California-based nonprofit purchased the 274-unit development, which includes studios and 1- and 2-bedroom apartments, in 1996. The property’s rents are limited to 60 percent of the area median income; in the Santa Ana market, which Johnson describes as “very tight,” this income group includes firefighters, teachers, and police officers.

In 2012, the property’s tax-credit investor exited the deal, prompting LINC Housing to refinance the property’s loan. During the property’s capital needs assessment, LINC Housing considered physical improvements such as roof repairs, but also explored energy-efficiency upgrades that would save water and gas. That focus on energy efficiency, says Johnson, is “what led us to the Green Refinance Plus program.” Improvements at City Gardens included replacing inefficient boilers, installing solar hot water systems and recirculating water pumps, replacing outdoor lighting with more efficient fixtures, and trading incandescent bulbs for compact fluorescents. LINC Housing will also replace grass with native plants and install an irrigation system that will not activate if it’s raining.

Johnson estimates that improvements to the property’s gas and water systems will save LINC Housing about $40,000 a year. He points out that some of the upgrades — in-unit changes, such as swapping out bulbs and installing new ceiling fans — will benefit residents, saving each household a few dollars per month on its electricity bill. Even such modest savings can be helpful, he says, especially for people on limited incomes. Pagitsas adds that even energy- and water-efficiency improvements that reduce only the tenant’s costs “make the property more marketable and competitive with other properties in the area,” which benefits owners and tenants alike.

The Green Refinance Plus loan made it possible for LINC Housing to buy out its partner, refinance existing debt on City Gardens, and accomplish about $3 million in improvements (of which $500,000 was invested in upgrades that promote sustainability). The improvements will extend City Gardens’ financial viability for the owner, and affordability restrictions on the rental units will continue until 2061. With its first loan, the Green Refinance Plus program has successfully addressed its major goals.

Copyright © 2013 PD&R Edge
Reprinted with permission.

Nonprofits Go All Out to Find and Recruit Stronger Board Members

THE CHRONICLE OF PHILANTHROPY

By Holly Hall
February 24, 2013

When three nonprofit groups merged last year to form the University of Arizona Health Network, problems quickly emerged with its new board of directors.

The parent organizations had appointed equal numbers of trustees to protect their interests, but that approach backfired. The 27-member board was big and hard to manage, and the trustees failed to come together as a board, leading to heated disagreements. They were, as one board member put it, “dysfunctional from the start.”

With help from an outside expert, the health network reexamined its leadership needs, whittled the board’s size, and appointed 17 mostly new trustees. The board is now working better.

Nonprofit organizations are increasingly taking a hard look at their boards and putting more resources into recruiting the right trustees, says Susan Meier, a governance expert with BoardSource, a nonprofit group that works to strengthen charity boards.

“It’s not just knocking on your neighbor’s door and saying, ‘We want you to serve on our board because you love kids,'” she says. “It is now more strategic.”

Even with charities putting more effort into finding the right trustees now, recruiting is still much easier than keeping board members focused and engaged over the long term, according to Ms. Meier and other board experts.

To do a better job of recruiting and engaging their board members, experts say that charities can:

Ask top local leaders for advice. Linc Housing, a Long Beach charity that provides low-cost homes in California, sought a new recruiting method after adopting term limits for board members. Jan Masaoka, chief executive of the California Association of Nonprofits, urged the housing group to bring local leaders together and ask them to recommend potential trustees because she has seen that work well for other charities.

The housing group invited a handful of influential people from construction, finance, and other industries related to housing to a 90-minute after-work event, with the promise it was all the time they would have to give.

Over drinks, the charity gave the guests a short update on critical issues facing Linc Housing and a job description for trustees. Then it asked each guest to suggest five people who could help the charity by joining its board.
Ms. Masaoka says at events like this, it’s important for people to base their suggestions on what each board member could actually accomplish for the charity. For example, the charity might seek a new board member who could help it build ties with Latino groups; just recruiting a Latino board member might not be enough to meet that goal.

After the “search party,” as Linc Housing called its event, officials ranked the recommended candidates and then got in touch with about two dozen people it thought had the most potential as new board members.

They were invited to one of four luncheons to learn more about Linc Housing and talk to trustees and employees. That led to formal invitations to six people who agreed to join the board.

The process helped prepare the new trustees for the issues they would confront from their first day on the board, says Nina Dooley, the charity’s director of communications, and it also broadened the pool of candidates.

Use a board matching program. Nonprofits can often take advantage of free or low-cost services that connect them with potential board members, including those offered by local United Ways and companies that want their executives to help charities.

In Cleveland, companies gathered together two decades ago to form Business Volunteers Unlimited, which has since recruited 2,300 charity trustees.

Making Books Sing, a small New York group providing theater and arts education to city schools, recently found two new trustees by participating in BoardServeNYC, a United Way program that has placed nearly 450 trustees at charities since 2009.

The program offers training for new board members and invites them to quarterly “peer learning groups” to hear experts lead discussions on topics such as making change and nonprofit finances. BoardServeNYC also holds matchmaking events at which charities can meet potential board members.

Andrew Frank, executive director of Making Books Sing, says he was hard pressed to find someone with financial acumen to join his small board before coming to BoardServeNYC. Now his group has both an accountant and a financial manager of a local family foundation on its board.

“If you are going to grow a board,” Mr. Frank says, “you cannot just rely on your existing board to bring in new members. You have to use everything out there to succeed.”

Hire a recruiter. Companies often pay executive recruiters to find board members, and nonprofit organizations have started to do the same, says Jim Gauss, chairman of Witt/Kieffer, an executive recruiting company that recently started a new practice to find qualified board members for nonprofits.

So far Mr. Gauss has helped a handful of health-care groups recruit new trustees and is now looking for board members for the Methodist Hospital of Southern California, in Arcadia.

Help/PSI, a New York charity that serves people with HIV and AIDS, recently recruited two new board members after hiring Carol Weisman, a St. Louis consultant who advises nonprofit boards and also writes a blog on trustees and fundraising for The Chronicle.

Because Help/PSI is considering a merger with two nonprofit housing organizations, it needs board members who can help evaluate the financial risks of combining three charities.

John Russell, the first trustee Ms. Weisman recruited, is a wealth manager who supports a St. Louis charity that provides housing for people with AIDS. He also has a home and clients in New York, so he was open to getting involved in civic affairs there.

Ms. Weisman also recruited Charlene Butterfield, a Standard & Poor’s director who does credit ratings on nonprofit hospitals, private schools, and other nonprofits. Since joining the board in August, Ms. Butterfield has not only shared her analytic skills but also helped with fundraising.

Start a group for potential trustees. To improve the fundraising returns of its golf tournament, Junior Achievement of Tampa Bay formed a group of local business people. The effort helped identify several people who went on to become board members.

The group of 12 executives meets monthly from September to June to plan ways to make the annual tournament “the highest quality ever golf package,” says Richard George, the charity’s chief executive. It now raises $750,000, up from just $18,000 when the group started 15 years ago.

The key is treating the business leaders well without asking them for money, Mr. George says.

The charity offers the executives several ways to get involved, including teaching business principles to local students, giving tours of their businesses to other members of the group, and attending dinners honoring leading entrepreneurs.

The approach has worked so well that Junior Achievement started a similar group for young executives, Mr. George says. “These groups are like feeders to our real board.”

Focus on governance, not nominating people. The Community Foundation of Lorain County, in Ohio, replaced its nominating committee with a governance committee when its leaders decided it needed trustees who reflected its region, a combination of rural and urban spaces.

Not only did the committee diversify its board but it also worked to improve its performance by setting up annual reviews so trustees could evaluate their own work and that of the whole board.

Forming a committee on governance emphasizes broad responsibilities to the board in a way that the typical nominating committee doesn’t, according to Berit M. Lakey, author of The Board Building Cycle.

Ask the committee to figure out when the board needs new expertise and how to deal with poor performance, she advises. And the governance committee should also focus on succession, seeking ways to groom future board leaders.

Offer meaningful work. Nonprofit groups often recruit board members who are movers and shakers, then don’t give them responsibilities commensurate with their talents, says Ms. Meier of BoardSource.

“They expect the person to fit into their culture without thinking about how to engage a person of this caliber,” she says. “If you want the best and the brightest, you cannot just have them review financial statements.”

Carl Terzian, a Los Angeles consultant who places executives on local nonprofit boards, recalls recruiting a corporate leader who was given the agenda at his first meeting on a hospital board.

“The first item was to select the color of toilet paper in hospital rooms,” Mr. Terzian says. “He got up and walked out and never came back.”

To avoid such mishaps, charity leaders should eliminate administrative details from their board agendas and seek trustees’ ideas for discussion topics, Mr. Terzian says.

Charities can also get guest speakers for board meetings and use other resources to engage board members, he says. “If you see an outstanding reference book or a seminar, get them for the whole board.”

Copyright © 2013 The Chronicle of Philanthropy
Reprinted with permission.

Nonprofits Form Real-Estate Investment Trust

THE CHRONICLE OF PHILANTHROPY

April 29, 2013

A nationwide coalition of housing-related nonprofits has formed a private real-estate investment trust, mostly to preserve affordable rentals in communities across the country where rising values have led to shifts from low-income housing to higher-priced properties, according to The Wall Street Journal.

The Housing Partnership Equity Trust is the nation’s only real-estate company owned and operated by nonprofits. Among the owners are Denver-based Mercy Housing Inc., LINC Housing Corp., and Nevada HAND Inc.

The trust has raised more than $100-million from private-sector investors, including Citigroup and Morgan Stanley, as well as funding from the John D. and Catherine T. MacArthur Foundation. It seeks to raise $500-million from institutional investors.

Participating nonprofits across the country own equal shares in the trust, which acquired its first property last week, a 128-unit apartment building in Aurora, Ill.

Copyright © 2013 The Chronicle of Philanthropy
Reprinted with permission.

Housing Partnership Equity Trust Invests in First Deal

AFFORDABLE HOUSING FINANCE

By Donna Kimura
April 29, 2013

The new Housing Partnership Equity Trust (HPET) has begun investing in affordable housing in collaboration with 12 nonprofit housing providers across the country.

HPET has raised $100 million from Citi, Morgan Stanley, Prudential Financial, Inc., the John D. and Catherine T. MacArthur Foundation, and the Ford Foundation.

Formed and operated by the Housing Partnership Network, a business collaborative of leading housing and community nonprofits, the trust will serve as a ready source of long-term, low-cost capital, enabling the nonprofits to efficiently acquire multifamily buildings that will provide homes for families, seniors, and others with modest incomes.

In its first transaction, HPET will provide funds to enable Mercy Housing Lakefront to acquire and rehabilitate a 128-unit property in Aurora, Ill., preserving critical affordable housing without dependence on low-income housing tax credits (LIHTCs) or other public subsidies.

“The HPET demonstrates a new approach to funding affordable housing — one that will streamline the capital-raising process for acquiring affordable housing units and sharply reduce transaction costs as well as the time it takes to close on a transaction,” said Drew Ades, CEO of HPET.

HPET will focus on providing equity investments in acquisition-rehab deals, he said.

It will target properties with access to public transportation and other community amenities. Capital improvements will be made to lower operating costs and utility expenses.

The initial 12 nonprofit members of HPET are AHC Housing, Inc.; BRIDGE Housing Corp.; Chicanos Por La Causa; Community Preservation and Development Corp.; Eden Housing, Inc.; Hispanic Housing Development Corp.; Homes for America, Inc.; LINC Housing Corp.; Mercy Housing; Nevada HAND, Inc.; NHP Foundation; and National Housing Trust/Enterprise.

They are experienced LIHTC developers and will continue to use that program to its fullest extent, but HPET provides them with an alternative source of funding, according to Ades.

With the first $100 million, officials hope to invest in about eight to 12 deals. However, the initial funding is seen as a platform to raise even more equity, Ades said.

“Too many affordable properties are being lost due either to gentrification or neglect. By providing a ready source of funds, enabling BRIDGE and similar organizations to acquire properties, HPET is the answer that so many community development organizations have been looking for to address the pressing need to preserve and improve our existing stock of affordable rental housing,” said Cynthia A Parker, chair of the HPET board and president and CEO of BRIDGE Housing, a leading developer and owner of affordable housing, in a statement.

The idea for HPET grew out of Housing Partnership Network’s peer exchange process.

Copyright © 2013 Hanley Wood, LLC
Reprinted with permission.

Affordable Multifamily Housing Gets $100 Million Jolt From New Group

MORTGAGEORB

By MortgageOrb
April 29, 2013

The newly formed Housing Partnership Equity Trust (HPET), a real estate investment trust (REIT) focused on the affordable multifamily housing sector, has secured $100 million in funding in order to begin investing in multifamily properties nationwide.

The funds came from Citi, Morgan Stanley, Prudential Financial Inc., the John D. and Catherine T. MacArthur Foundation and the Ford Foundation. HPET will provide long-term, low-cost capital that will enable a group 12 nonprofit housing providers to acquire apartment buildings and provide housing for “families, seniors and others with modest incomes,” the organization says.

In its first transaction, HPET funds are enabling Mercy Housing Lakefront to acquire and rehabilitate a 128-unit property in Aurora, Ill., preserving affordable housing without dependence on Low-Income Housing Tax Credits or other public subsidies.

“The Housing Partnership Equity Trust demonstrates a new approach to funding affordable housing — one that will streamline the capital-raising process for acquiring affordable housing units and sharply reduce transaction costs, as well as the time it takes to close on a transaction,” says HPET CEO Drew Ades. “Over the next several months, we will raise additional funds to further expand our scale and impact.”

“Since properties acquired through HPET generally will not rely on property-level subsidies, the nonprofit operator has the ability to build cash and liquidity through efficient operations, better aligning incentives and allowing nonprofits to increase their capacity, and provide an alternative investment channel to social-impact investors,” says Andrew Ditton, co-head of Citi Community Capital.

The 12 nonprofit members of HPET are AHC Housing Inc.; BRIDGE Housing Corp.; Chicanos Por La Causa; Community Preservation and Development Corp.; Eden Housing Inc.; Hispanic Housing Development Corp.; Homes for America Inc.; LINC Housing Corp.; Mercy Housing; Nevada HAND Inc.; NHP Foundation; and NHT/Enterprise.

Copyright © Zackin Publications Inc.
Reprinted with permission.

Nonprofit Firms Form REIT

WALL STREET JOURNAL

By A.D. Pruitt and Dawn Wotapka
April 29, 2013

Some of the nation’s largest housing-related nonprofit organizations are delving into the for-profit world to protect affordable housing.

The nonprofits, including Mercy Housing Inc., Linc Housing Corp. and Nevada HAND Inc., created a private real-estate investment trust that will acquire apartment buildings across the country, mainly in communities where rising real-estate values have prompted landlords to turn low-income housing into housing for the middle class or affluent.

The REIT, called the Housing Partnership Equity Trust, is the nation’s only real-estate company owned and operated by nonprofits and the second REIT to focus on affordable housing.

The REIT has raised more than $100 million from private-sector investors, including Citigroup Inc., Morgan Stanley and Prudential Financial Inc. also secured funding from the John D. and Catherine T. MacArthur Foundation. Housing Partnership closed on its first acquisition Friday, a 128-unit apartment building in Aurora, Ill., that was acquired by Mercy Housing’s Chicago center for $5.2 million.

The Housing Partnership says the REIT structure, which is exempt from most corporate taxes as long as it pays 90% of its taxable income as dividends, gives it access to low-cost capital and the financial ammunition to compete with deep-pocketed investors who are increasingly looking for older buildings to buy, fix up and charge higher rents. The strategy is leaving fewer options available for financially strapped tenants.

The Joint Center For Housing Studies of Harvard in its report for 2011 noted that 8.7% of low-cost rental space was upgraded to higher rents on a net basis during the last decade and the shortfall of affordable units doubled to 5.1 million from 2001.

“There’s an awful lot of investors at this point looking to buy rental housing in the U.S.,” said Andrew Ditton, managing director and co-head of Citi Community Capital, one of the nation’s largest affordable-housing lenders which provided the REIT $65 million in debt financing.

‘The ability to compete in that market for a nonprofit is limited because they don’t have the capital on hand to throw a cash bid and win a deal like most for-profit developers.”

The REIT started raising money a year and half ago and aims to raise $500 million from institutional investors. The nonprofits, scattered across the country, own equal stakes in the REIT and will acquire and redevelop existing multifamily properties established as affordable rentals. These organizations will also take small stakes in their acquired buildings which they operate and manage.

While the REIT is set up to deliver a stable and reliable return, it isn’t for the profit-driven investor. “We’re appealing to a class of socially conscious investors who want to make an economic impact as well as a social and mission impact,” said the REIT’s chief executive, Drew Ades. “We’re not trying to sell a big-growth story.”

The housing crash sent millions more Americans into apartments over the past five years, which depressed vacancy rates. For instance, in the first quarter, just 4.3% of apartments were vacant nationwide, well below the 8% available after the housing crisis, according to Reis Inc., a real-estate research firm.

Such demand has developers rushing to build new supply. But, much of what is being built are high-end properties filled with amenities like saunas and rooftop pools for which they can charge hundreds, or even thousands of dollars, a month.

Luis Mejia, director of multifamily research for CoStar Group, said while Housing Partnership’s business model is a “very unusual” and “not a bread and butter type of investment” for a REIT, the nonprofits could benefit from a growing market in lower-end housing as the luxury market becomes saturated.

Denver-based Mercy Housing, one of the largest nonprofits focused on affordable housing, plans to invest $1.5 million to redevelop the Aurora property for which it has 5% stake via its Chicago unit Mercy Housing Lakefront, says Cindy Holler, president of the center. She added Mercy will focus on acquiring properties near job centers, particularly health-care hubs. “We’re looking around hospital systems which are big job creators. We want to make sure that the hospital systems have their work force affordably housed.”

Ms. Holler said because Mercy is a nonprofit, the seller of the building received a state tax benefit for selling the property to the organization at a lower price.

“It’s not the most common occurrence,” said Michael Grupe, executive vice president of research and investor outreach for the National Association of Real Estate Investment Trusts, of the new REIT’s business model.

“Typically the owners of such enterprises are trying to maximize their economic profitability. But, it is pretty clear that there are significant segments of the investment community that are focused on socially responsible investing in various formats,” he said.

Over 100 Leading Organizations Tap EDF Climate Corps to Catalyze Energy Savings Linc Housing named as participant in EDF fellow program

ENVIRONMENTAL DEFENSE FUND

By Stephanie Kennard

New York, N.Y. – May 21, 2013 — Today, Environmental Defense Fund (EDF) kicks off its sixth and largest season of EDF Climate Corps, an innovative fellowship program that places specially trained graduate students in companies, cities and universities to save energy, money and the environment.

This summer, EDF will place 116 Climate Corps fellows in 106 organizations. New participants such as Apple, Colgate-Palmolive, General Motors, and the cities of Austin and Philadelphia will join returning hosts including AT&T, Facebook, PepsiCo, New York City Housing Authority and Chicago Public Schools.

“Leading energy management practices in our operations is a key pillar of GM’s sustainability strategy, and EDF Climate Corps will provide a fresh perspective that can enhance our energy efficiency efforts,” said Mike Robinson, vice president of sustainability and global regulatory affairs for General Motors. “EDF Climate Corps will build upon our work and help develop a business case to maximize the environmental and economic benefits.”

Since its launch in 2008, EDF Climate Corps has uncovered more than $1.2 billion in total energy savings for participating organizations, finding an average of $1 million in savings at each one. In terms of reducing carbon emissions, these savings are equivalent to taking 200,000 cars off the road each year.

EDF Climate Corps recruits students from the nation’s top graduate programs to accelerate adoption of smart energy management practices in participating organizations. The findings of these EDF Climate Corps fellows are often scalable solutions that take organizations’ energy management efforts to the next level.

“In our fourth summer participating in EDF Climate Corps, the program has become a trusted and invaluable resource for AT&T where EDF Climate Corps fellows play a critical role supporting in the building and implementation of our enterprise-wide system for energy efficiency,” said John Schinter, executive director of energy at AT&T. “There is always more to do, which is why we keep coming back.” The leading U.S. communications company has hired five fellows since 2010, resulting in tens of millions of dollars in energy savings.

According to the U.S. Department of Energy, buildings consume 70 percent of electricity in the U.S. and account for over a third of global greenhouse gas emissions. EDF created Climate Corps to catalyze immediate reductions in emissions from buildings by breaking down the barriers that keep organizations from capturing the economic and environmental benefits of energy efficiency.

“Despite projections of more than $1.2 trillion in energy savings available to the U.S. economy, many organizations are still missing the opportunity to grow their profits through effective energy management,” said Victoria Mills, managing director of EDF Climate Corps. “EDF Climate Corps is designed to seize the financial and environmental rewards of energy efficiency, while putting in place the energy management practices that deliver systemic and lasting reductions in costs and emissions.”

# # #

Environmental Defense Fund (edf.org), a leading national nonprofit organization, creates transformational solutions to the most serious environmental problems. EDF links science, economics, law and innovative private-sector partnerships.

EDF Climate Corps (edfclimatecorps.org) taps the talents of tomorrow’s leaders to save energy, money and the environment by placing specially-trained EDF fellows in companies, cities and universities as dedicated energy problem solvers. Working with hundreds of leading organizations, EDF Climate Corps has found an average of $1 million in energy savings for each participant. For more information, visit edfclimatecorps.org. Read our blog at edfclimatecorps.org/blog. Follow us on Twitter at twitter.com/edfbiz and on Facebook at facebook.com/EDFClimateCorps.

Monterey Park to enter 30-year contract with low-income housing development company

THE PASADENA STAR-NEWS

By Zen Vuong
July 24, 2013

MONTEREY PARK — In a 4-1 decision, the City Council voted to award about $835,000 in federal and city funds to LINC Housing Corporation.

The decision frees Monterey Park from having to manage 25 city-owned apartments because LINC would purchase the properties at 534 Chandler Ave. and those at 321, 325, 341 and 371 E. Pomona Blvd.

“Whatever we do, the city won’t see the money,” Councilman Anthony Wong said. “This is not the business of getting money; this is providing housing. We are shifting the job to LINC for them to manage it, for them to update it, for them to make sure we have good tenants.”

The City Council had to decide between LINC Housing Corporation and Oldtimers Housing and Development Corporation before July 31 or risk losing about $358,000 in federal Housing and Urban Development funds.

Oldtimers’ proposal to purchase two apartments at 1258 W. 1st St. and rehabilitate them for the elderly wasn’t chosen.

LINC will purchase four of the city’s parking spots at 236 Ramona Ave. The low-income housing company will build six rental apartments, a community room and a computer room. The combined 31 apartments will become a single, affordable housing complex, said Suny Chang, a spokeswoman for LINC.

Councilman Mitchell Ing voted against approving LINC’s development plans.

“When a council is forced to make a decision in the final hour, obviously the question is why wasn’t this discussed or presented to us years ago,” Ing said. “Are these really the best viable options for the money that is being requested? I don’t know. There is so much uncertainty, especially when you talk in terms of 55 from now.”

The city will provide LINC a 30-year loan that realistically won’t be paid back until 55 years later, said Julie Romey, a real estate development advisor for the project.

Monterey Park will get about $4.6 million for its city-owned 25 apartments, but the money must be put back into affordable housing, City Attorney Mark Hensley said.

“The point wasn’t to make money from the sale of the 25 units,” he said. “The city isn’t equipped to manage the 25 units. We have an obligation to manage them at a certain level.”

About 13 of 25 units are vacant and the city is set to evict two tenants on Aug. 3, said James Funk, lead planner/economic and development services special project manager.

On the other hand, LINC has a 5 percent vacancy rate or better, Chang said.

However, the entire project is dependent on the sale of 9 percent housing tax credits that must be sold by March 2014.

Some city council members worried Monterey Park would sell city parking spots and then be stuck with a partially developed apartment complex because LINC can’t meet some of its development goals.

It’s still too early to say what will happen but Hensley said the city will take precautions against losing four parking spaces only to be stuck with an eyesore.

“We would require (LINC) to post performance and material bonds to make sure they finish the work or return the parking lot to the original condition,” Hensley said.

Copyright © Los Angeles Newspaper group
Reprinted with permission.

Seniors Trained to Assist in Emergencies Honored Thursday

CA PATCH

Posted by Mirna Alfonso
August 28, 2013
News Release from the Los Angeles County Office of Emergency Management

L.A. COUNTY SET TO HONOR NATIONAL PREPAREDNESS MONTH “HEROES”
AT SEASONS AT COMPTON, THURSDAY.

South Gate-Lynwood — September is National Preparedness Month and this year’s theme, “You Can Be the Hero” has been embraced by the residents and staff living at SEASONS at Compton, 15810 S. Fairley Ave.

It was so successful, officials said, that LINC, which runs the property �� is considering expanding CERT training to other Los Angeles County properties, including Hollydale Plaza idn South Gate. Soon, LINC will talk with the L.A. County Fire Department and the Office of Emergency Management to explore the possibilities.

Some 20 residents have successfully compleed a 20-hour certified U.S. Department of Homeland Security Federal Emergency Management Agency Community Emergency Response Team training.

CERT training will allow the residents of SEASONS to be of assistance to first responders and the community in case of disasters or emergencies, offcials said.

Los Angeles County will officially kick-off its 2013 National Preparedness Month by honoring the residents and staff with certificates of achievement presented by the Office of Los Angeles County Chairman of the Board Mark Ridley-Thomas.

In addition, Los Angeles County Fire Department Battalion Chief Dan Ertel will present each graduate with a very own CERT backpack and equipment.

LINC Housing is so excited to work with Los Angeles County on the CERT training program at SEASONS at Compton, said Nina Dooley, vice president, director of corporate development & communications, LINC Housing.

“LINC Cares, our resident services group, has been working with the county for several weeks to coordinate the program, and now 22 residents and staff members are CERT trained,” Dooley said.

It was so successful, LINC is considering expanding CERT training to other LA County properties, including Hollydale Plaza in South Gate.

“Soon, LINC will talk with the L.A. County Fire Department and the Office of Emergency Management to explore the possibilities,” said Dooley.

Following the conclusion of the special ceremony Thursday there will be a disaster preparedness expo featuring invited Los Angeles County Operational Area partner representatives from county Departments, utility companies, and non-government organizations.

Each attendee will be provided disaster preparedness materials in different formats and languages.

Preparedness is a shared responsibility as this year’s National Preparedness Month focuses on turning awareness into action by encouraging all individuals and communities nationwide to make an emergency preparedness plan.

The residents and staff at SEASONS at Compton are doing that as they become certified CERT volunteers.

For a list of the 2013 National Preparedness Month events and activities taking place throughout Los Angeles County Operational Area, please go here.

Copyright ©2013 Patch.
Reprinted with permission.

Seniors Near South Gate Graduate From Emergency Preparedness Training

CA PATCH

Posted by Mirna Alfonso
August 29, 2013

South Gate-Lynwood — Some 22 senior citizens living at a housing complex in Compton graduated from training provided by the developer, which also has a senior complex in South Gate.

It was so successful, officials said, that LINC — which runs the property — is considering expanding CERT training to other Los Angeles County properties, including South Gate’s Hollydale Plaza.

Some 22 seniors display their certificates following their graduation from the CERT academy at SEASONS senior living complex in Compton, Calif. Aug. 29, 2013.
Photo Credit: Gary Krueger

“Soon, LINC will talk with the L.A. County Fire Department and the Office of Emergency Management to explore the possibilities,” said Nina Dooley, vice president, director of corporate development & communications, LINC Housing.

The certified U.S. Department of Homeland Security Federal Emergency Management Agency Community Emergency Response Team training was given to the residents of SEASONS in Compton.

The training will allow them to be of assistance to first responders and the community in case of disasters or emergencies, officials said.

Copyright ©2013 Patch.
Reprinted with permission.

Lighting a Spark Between Energy Advocates and Community Development

SHELTERFORCE – NATIONAL HOUSING INSTITUTE

Partnerships between utility companies and affordable rental housing owners are ripe for development, when the right switch is flipped.

By Casie Moen
October 15, 2013

Is there a good reason for affordable housing practitioners to start paying attention to utility company-sponsored green retrofit programs? Ask an industry insider and they’ll likely tell you no — there are 12 billion good reasons. In the next 10 years, utility companies are set to budget a conservative estimate of $12 billion for programs that could help finance affordable housing energy-efficiency retrofits, including everything from small-scale updates like light-emitting diode (LED) bulbs to more comprehensive treatments that replace power-hogging HVAC systems with the latest energy-efficient products.

Non-appropriation-tied sources of multifamily preservation funding are scarce and energy price hikes are stretching already tight budgets. And so, affordable housing advocates are getting serious about finding ways to effectively use these programs to help fund energy-related capital improvements, effectively adding a new funding source that can make rehab projects more feasible.

HOW MUCH DOES IT COST TO POWER A TOASTER OVEN?
“Why do energy-efficiency work?” Michael Volker, director of regulatory and energy services at Midwest Energy, Inc., asked rhetorically on a National Housing Trust National Utility Working Group conference call last December. “I come at this from an economic perspective. Economics says you don’t need to intervene in a well-performing market, but we all know that the end-use market for energy isn’t well-performing.”

Volker, a no-nonsense utilities representative who also teaches college economics, isn’t one to be persuaded by the altruistic reasons to devote private resources to improving affordable housing stock. For Midwest Energy and most other utility companies across the country, prioritizing energy efficiency comes down to dollars and cents. If the companies don’t find ways to decrease customer energy consumption, they will be forced to build costly new power plants and energy grid infrastructure to keep up with demand and capital expenditures, which will add far more fixed costs to the bottom line than are likely to be recouped in energy usage revenue.

End-use energy markets aren’t optimally performing for several reasons. The first: imperfect information. Most energy users simply don’t have enough facts to make informed decisions about their utility usage.

“Think about it this way,” Casius Pealer, principal at Oystertree Consulting, explains. “If you ask nearly anyone, they can tell you exactly how much it costs to fill their car with gas any given week, but their refrigerator? Their AC unit? Ask someone how much it costs to power their toaster oven for a week and see what they say. Sure we get utility bills, but they are after the fact, and lump all of these costs together.” The takeaway is that consumers are entering the utilities market without the information they need to make economically efficient decisions, and are often using more energy (and spending more money) than they otherwise would.

Volker calls the second end-use energy market failure the “first cost barrier,” meaning that the initial costs associated with taking on a large-scale energy retrofit — such as replacing an old boiler or installing an energy-efficient cooling system — are frequently too cost prohibitive for an affordable housing owner with a lean operating budget. Add to this the complexity of most multifamily projects, where there are frequently many layers of financing that stand in the way of the building being used as collateral without permissions from numerous lien holders, and it becomes nearly impossible for affordable asset holders to make their buildings more efficient.

Last, there is the problem of split incentives. Enterprise Green Communities describes it like this: “In affordable multifamily buildings, the benefits of green are often split between the tenants and the building owner.” In other words, building owners have to pay the upfront costs for retrofits, while the tenants are frequently reaping the benefits through lower utility bills, and in affordable projects, owners aren’t easily allowed to raise rents to make up the difference.

Michael Volker sees these market failures as potential threats to his bottom line and is steering Midwest Energy around them by offering his mostly rural Western Kansas customers an energy-efficiency retrofit program called How$mart. The program works like this: a customer requests an energy audit, through which the utility develops a customized conservation plan that outlines the best opportunities for energy savings for that particular unit. The utility acts as an Energy Service Company (ESCO), by providing the upfront capital for the retrofit, which is then paid back through a fixed surcharge on the customer’s utility bill, a financial mechanism called on-bill repayment (OBR). The surcharge is legally required to be no more than 90 percent of the savings of the project and the repayment is tied to the premises for a 15-year term on most residential projects.

The How$mart model has been mostly used in market-rate projects, but has worked in affordable projects as well. “One of the beauties of How$mart is the ability to pool funds to create more efficiency improvements,” Volker says. In affordable projects, Midwest Energy will allow customers with access to subsidized weatherization program funds to, for example, use those monies to update their home’s thermal shell, while counting that improvement as the customer’s contribution to the total cost of the energy-efficiency retrofit. With the customer contribution requirement met, How$mart can then finance another aspect of the retrofit, such as updating the HVAC system. How$mart has also been applied to multifamily deals, although Volker admits that overcoming the split incentive barrier is difficult. “It can be done,” he says, “but it can be complicated.”

Affordable housing project changes go beyond the physical

SACRAMENTO BUSINESS JOURNAL

By Ben van der Meer, Staff Writer
November 7, 2013

After rehabbing a 168-unit affordable housing complex in Sacramento, LINC Housing Corp. hopes residents take the opportunity to do some positive building in their own lives.

Though a new roof, appliances and community room as among the notable changes to Mosaic Gardens at Taylor Terrace, LINC Housing president and CEO Hunter Johnson said the boost in programs and services may be the most visible difference.

“Many of the residents, if not most of them, are working families,” said Johnson, who will attend an event Thursday marking the complex’s $16.5 million acquisition and recently completed renovation. “So these are latchkey kids.”

Johnson said one boy who lived at the complex expressed interest in becoming a police officer, but it wasn’t until an officer came to Mosaic Gardens as part of a career day program that he became sure. “I think that sort of thing really makes a difference to residents,” Johnson said.

Built in 1994, Mosaic Gardens at 4058 Taylor St. wasn’t exactly rundown when LINC Housing acquired it in 2009, but it’s definitely better now, according to Johnson. In addition to the other upgrades, workers also repaired termite damage and fixed other small dings, Johnson said. The community center overhaul included a more efficient layout, he added.

Mosaic Gardens, one of three complexes LINC Housing owns, won’t be the last for improvement. Another one in West Sacramento is scheduled for similar fixes, Johnson said..

Ben van der Meer covers real estate, development, local and regional planning, construction, transportation, agriculture and water for the Sacramento Business Journal.

Copyright ©2013 Sacramento Business Journal
Reprinted with permission.

Energy Efficiency Case Studies: A Variety of Approaches

TAX CREDIT ADVISOR

Green Retrofits: Opportunities for Savings, Promising New Initiatives

TAX CREDIT ADVISOR

City Gardens: A Potential Model for Stand-Alone Green Retrofits”

TAX CREDIT ADVISOR

Financing Energy Efficiency Retrofits of Affordable Multifamily Buildings

THE GREEN ISSUE, VOLUME 10, ISSUE 1

Affordable Housing Community Cuts Energy Costs by 20% with Help
of Fannie Mae’s Green Program

PROPERTY MANAGEMENT INSIDER

By Tim Blackwell
April 10, 2014

With a housing property more than four decades old in need of renovation, LINC Housing Corporation realized an opportunity to reach deep into its bag of green retrofits.

The non-profit housing provider, which is no stranger to sustainable living, learned in 2012 how to work with public utilities and government funding to cover much of the costs of a major rehab project and add an eco-friendly twist that is paying dividends. LINC Housing has transformed City Gardens Apartment Homes in Santa Ana, Calif., into a model for how multifamily portfolios can save big on energy and utility costs.

The 274-unit garden-style affordable housing apartment community built in 1969 was in serious need of new roofing, siding, storm water drainage, balcony renovations and general repair. The last renovation was in the early 2000s when a little more than a dozen hot water boilers were upgraded.

While plotting a course of repairs, LINC Housing explored a green refinance program to cover much of a $617,000 renovation. Fannie Mae’s new Green Refinance Plus loan program provided the springboard for installing new energy-efficient fixtures, systems, and insulation.

Now, a year later and the majority of the upgrades completed, the community within 27 two-story apartment buildings in Southern California has cut energy costs by 20 percent and is on track to post a 34 percent return on investment over the next six years.

“Whenever we’re doing improvements to a property that are just basic improvements, we try to layer on the green improvements at the same time,” said Samara Larson, LINC’s director of sustainability.

FANNIE MAE LOAN PROGRAM HELPS LOW INCOME HOUSING GO GREEN
LINC Housing, which has specialized in affordable housing for 30 years in California, became the first multifamily company to receive a Green Refinance Plus loan, which Fannie Mae introduced in 2011. Green Refinance Plus is intended to refinance expiring mortgages of Low Income Housing Tax Credit and other affordable projects and lower annual operating costs by reducing energy consumption.

LINC received a $19.4 million loan from Fannie Mae’s Lender Partner Bellwether Enterprise that is being used to not only upgrade City Gardens but also to retire tax-exempt bonds and buy out a Low Income Housing Tax Credit equity partner.

By working with Fannie Mae and Bellwether Enterprise, Larson said, City Gardens was able to get more money for the project through a large commitment to sustainability improvements. After the loan was approved, LINC Housing partnered with five groups, including Southern California Gas Co. and Southern California Edison, to cover $397,000 in product cost and labor services that included a laundry list of improvements.

City Gardens got new boilers, energy-efficient lighting in common areas and apartments, a passive solar domestic water heating system, low-flow plumbing fixtures, upgraded forced air units and additional weatherization and insulation.

“It was a pretty good scale renovation, and Fannie Mae had come out with this Green ReFi program, which allowed us to do not only the renovations that we needed to do but also green retrofits,” Larson said. “We’ve got a pretty strong commitment to sustainability within our portfolio. We see the advantage to our residents and the operation of the property in doing green improvements.”
Utility companies helped LINC Housing secure all the possible product rebates and incentives to keep costs down. Because California is very green friendly, finding the best deals didn’t require as much digging as perhaps it would in other parts of the country, but the hunt was nonetheless challenging, Larson said. LINC Housing was able to work with assigned representatives at the utility companies to find the best deals.

CITY GARDENS’ GREEN MAKEOVER BEGAN WITH EDUCATING RESIDENTS
Before turning the first wrench, however, LINC had to get a buy-in from City Gardens residents. First, because the property is sub-metered, City Gardens had to acquire utility usage history from residents, which required going door to door and requesting the information.

Also, apartment staff had to educate residents on what sort of green retrofits and improvements were being done and how they would be of benefit.

“Anytime you do energy efficiency, there is a certain adaptation with any change, and there is a certain behavioral component in what goes on in a unit,” Larson said. “If you don’t help educate the residents about what you’re doing and why and how they need to use it, you’re not going to get maximum benefit.”

Even the community’s children got in on the action.

Resident Services incorporated green activities into its on-site after-school program, which enabled kids to build small examples of how sustainable energy works. Building solar ovens was one such lesson.

“Sometimes if you can sell kids on things it helps sell their parents on it, because the kids then remind them how to do it,” Larson said. “We saw a lot of that with recycling years back. If you teach a kid to recycle they’ll show their parents how to throw stuff away properly.”

When the dust settled, the entire out-of-pocket expense was $220,000. LINC Housing had projected a 23 percent savings, but some install issues plus delays in remaining projects — new irrigation and PV solar systems — have slowed the return. However, Larson expects City Gardens to reach the projected number in time and is watching progress by tracking the project through the Environmental Protection Agency’s (EPA) ENERGYSTAR Portfolio Manager and Home Energy Score tool.

SUCCESS OF CITY GARDENS A MODEL FOR OTHER GREEN REFINANCE PROJECTS
In the meantime, other green upgrades are currently being considered for a LINC Housing property in Lancaster, Calif. The company has signed up for the Dept. of Energy’s Better Building Challenge, which now includes multifamily properties, to explore more energy efficient solutions.

“We’ve been real pleased with benefits that we get from our sustainable retrofit,” Larson said. “We’re committed to reducing our portfolio energy use by 20 percent by 2020.”

City Gardens’ success has made an impact at Fannie Mae. Since closing the first Green Refinance Plus loan for City Gardens loan, Fannie Mae has closed four other Green Refinance Plus loans.

“We’re very proud of LINC Housing partnership with us in doing the first Green Refi Plus loan, and it has been a huge success story with the implementation of the money they got through our program, as well as other things that they got through grants and things like that,” said Donna Varner, Fannie Mae’s Senior Project Manager of Multifamily Green Initiatives. “They are a huge success for us.”

Copyright Property Management Insider.
Reprinted with permission.

FACT SHEET: President Obama Announces Commitments and Executive Actions to Advance Solar Deployment and Energy Efficiency

THE WHITE HOUSE

The White House
Office of the Press Secretary
For Immediate Release

May 09, 2014

Private and Public Sector Commitments and Executive Actions Will Create Jobs
and Cut Carbon Pollution

Today, President Obama announced more than 300 private and public sector commitments to create jobs and cut carbon pollution by advancing solar deployment and energy efficiency. The commitments represent more than 850 megawatts of solar deployed – enough to power nearly 130,000 homes – as well as energy efficiency investments that will lower bills for more than 1 billion square feet of buildings. Additionally, the President announced new executive actions that will lead to $2 billion in energy efficiency investments in Federal buildings; smarter appliances that will cut carbon pollution by more than 380 million metric tons – equivalent to taking 80 million cars off the road for one year – and will save businesses nearly $26 billion on their energy bills; and training programs at community colleges across the country that will assist 50,000 workers to enter the solar industry by 2020.

President Obama is committed to making 2014 a year of action and has pledged to use the power of his phone and his pen to expand opportunity for all Americans. Last month, the White House hosted a Solar Summit celebrating cross-sector leadership on solar and calling for commitments to support solar deployment and jobs through the expand use of solar in our homes, businesses, and schools. The President has also called on private and public sector leaders to join the Better Buildings Challenge and continue improving the efficiency of American commercial, institutional, and multifamily buildings and industrial plants by 20 percent or more over ten years.

Today, leaders from the private and public sectors are answering the call. Altogether, more than 300 multifamily housing, homebuilder and home improvement, rural electric cooperative, commercial sector (including retailers, food service, and hospitality), and public sector (including states, cities, school districts) organizations are announcing commitments.

The commitments made today build on the momentum that is driving solar deployment and energy efficiency investments all across the country:

Last year, about a quarter of new power generation capacity was from solar – second only to natural gas.
Growing deployment, led in large part by the utility sector, has driven down costs: Over the last three years, the cost of a solar energy system has dropped by more than 50 percent – helping to give more and more American families and businesses access to affordable, clean energy.
Since the President took office, America has increased its electricity generation from solar more than ten-fold and tripled electricity production from wind power.
Since the President took office, the Department of Energy has already put in place appliance efficiency standards that will save American consumers nearly $450 billion on their utility bills through 2030.

To further support solar deployment, reduce the amount of energy consumed by American families, cut down on their energy bills, and create jobs, today, the President is taking new executive actions to:

Build a skilled solar workforce;
Provide innovative financing for deploying solar;
Drive investment in energy upgrades to federal buildings;
Improve appliance efficiency; and
Strengthen building codes.

The private sector commitments and executive actions announced today reinforce American leadership in innovating and deploying clean energy, cutting energy waste, and creating good paying jobs that cannot be outsourced.

NEW EXECUTIVE ACTIONS

President Obama Announces Executive Actions that will Create Jobs and
Cut Carbon Pollution

As part of this Year of Action, the President has taken numerous actions to advance our nation’s energy and climate goals and expand opportunities for hardworking Americans to get ahead. But there’s more work to do. That’s why, today, the President announced a series of executive actions that will create jobs, reduce carbon pollution, and cut energy waste.

UNLOCKING LONG-TERM INVESTMENT IN CLEAN ENERGY AND JOBS

Solar is a vital component of the Administration’s all-of the above energy strategy. Supported by historic investments in research, development, and deployment, the price of solar technologies has decreased and the U.S. solar market has experienced rapid growth since President Obama took office. The President is committed to continuing this momentum. That’s why, last month, the White House hosted a Solar Summit to honor cross-sector leadership on solar and announce new steps to expand the use of solar in our homes, businesses, and schools. Today, the President is announcing new initiatives to further support solar deployment and create good paying American jobs that can’t be outsourced.

Building a Skilled Solar Workforce: To enable a skilled workforce to support the growth of solar deployment across America, the DOE’s Solar Instructor Training Network will support training programs at community colleges across the country that will assist 50,000 workers to enter the solar industry by 2020. This builds upon SunShot’s existing Solar Instructor Training Network of nearly 400 community colleges in 49 states that have trained over 22,000 people to join the solar industry since 2010. These community colleges include:

San Francisco City College, San Francisco, CA
Oglala Lakota Community College, Kyle, SD (Oglala Lakota Tribe)
Kankakee Community College, Kankakee, IL
St. Phillips College, San Antonio, TX
Forsyth Technical Community College, Winston Salem, NC
Greenfield Community College, Greenfield, MA

HUD and DOE are also partnering to advance available educational opportunities in Science, Technology, Engineering, and Mathematics (STEM) fields to support energy literacy and employment opportunities in the solar sector for public housing residents.

Providing Innovative Financing for Deploying Solar: Building on the success of the Defense Department’s coordinated efforts to purchase renewables – and leverage its buying power to deploy clean energy technologies like solar – the General Services Administration is identifying opportunities for potential Federal Aggregated Solar Procurements in both the National Capital Region and Northern California. The effort seeks to bring together multiple Federal agencies to capitalize on economies of scale with the goal of lower electricity bills for individual sites, and increased renewable energy production, while reducing internal agency overhead costs by sharing procurement and project management resources.

In addition, in a step forward for renewable energy, the Treasury Department and IRS will shortly clarify how certain investment rules relate to renewable energy installations. This is important because real estate investment trusts (REITs), a key component of many retail investors’ portfolios, generally hold only real property. The new guidance will provide clarity regarding the treatment of renewable energy installations in REITs, thereby helping to promote investment in the sector.

REDUCING ENERGY BILLS FOR AMERICAN FAMILIES AND BUSINESSES

Energy efficiency is one of the clearest and most cost-effective opportunities to save families money, make our businesses more competitive, and reduce carbon pollution. That’s why the President established a new goal for energy efficiency standards in his Climate Action Plan and directed his Administration to reduce barriers to investment in energy efficiency and expand the Better Buildings Challenge. As part of the President’s Year of Action the Administration has already issued three proposed and four final energy efficiency standards, expanded the Better Buildings Challenge to include multifamily housing, and announced new funding for innovative energy efficiency projects located in the U.S. To further reduce the amount of energy consumed by American families, cut down on their energy bills, and create jobs, today, the President announced new initiatives to:

Drive $2 Billion in Energy Efficiency Investments for Federal Buildings: Today, President Obama is announcing an additional $2 billion goal in federal energy efficiency upgrades to Federal buildings over the next 3 years. Today’s challenge, in combination with the initial commitment of $2 billion in 2011, will result in a total of $4 billion in energy efficiency performance contracts in the Federal sector through 2016. These investments will save Americans billions in energy costs, promote energy independence, and, according to independent estimates, create tens of thousands of jobs in the hard-hit construction sector. The $2 billion investment announced today extends and expands the President’s commitment to energy upgrades of Federal buildings using long-term energy savings to pay for up-front costs, at no net cost to taxpayers. Federal agencies have already committed to a pipeline of nearly $2.7 billion in projects.

Breaking through Market and Technical Barriers: As part of the President’s Climate Action Plan, the Energy Department created three Better Building Accelerators in December 2013 to support and encourage ongoing state- and local government-led effort to save money and energy. Building off of this progress, today, DOE is launching a High Performance Outdoor Lighting Accelerator to increase the adoption and use of high efficiency outdoor lighting in the public sector. This Accelerator is aimed at replacing more than 500,000 outdoor lighting poles and developing best practice approaches to municipal system-wide upgrades. The charter cities include:

Detroit, MI
Mid-America Regional Council representing Kansas City, MO metro area
West Palm Beach, FL
Little Rock, AK
Huntington Beach, CA

Improve Appliance Efficiency: Today, DOE is issuing two final energy efficiency conservation standards. One standard for electric motors, which are frequently used to power devices such as conveyor belts and escalators, another standard for walk-in coolers and freezers, such as those used to display milk in supermarkets. Through 2030, these standards will help cut carbon pollution by about 158 million metric tons – equivalent to the annual electricity use of more than 21 million U.S. homes and will save consumers over $26 billion on their energy bills. Since June, the Department has issued nine proposed and five final energy conservation standards, and when combined with the final rules already issued under this Administration, will surpass 70 percent of the President’s goal of reducing carbon pollution by at least 3 billion metric tons cumulatively by 2030.

Strengthen Building Codes: Today, the Department of Energy is preliminarily affirming that industry’s latest commercial building energy code – the 2013 edition of ANSI/ASHRAE/IES Standard 90.1 – provide an additional 8.5 percent energy savings over the previous Standard, and up to 30 percent savings compared to today’s predominant state energy codes. The updated code will help states and the Federal government save money and energy on building operations and cut emissions by 230 million metric tons of CO2 by 2030. Since 2009, improved codes for residential and commercial buildings have already saved U.S. homes and businesses $44 billion on their energy bills, today’s action builds off of this progress.

Expand Multifamily Housing Energy Finance Solutions Through Green Preservation Plus: Fannie Mae and HUD/The Federal Housing Administration (FHA) announced the expansion of the Green Preservation Plus program, an enhanced financing option aimed at preserving quality affordable housing by encouraging the investment in energy- and water-saving property improvements. Green Preservation Plus, formerly Green Refinance Plus, is a Fannie Mae-FHA Multifamily mortgage loan execution that provides extra loan proceeds to owners of affordable housing properties to make energy- and water-efficient property improvements. To be eligible for a Green Preservation Plus mortgage loan, owners must commit to making energy- and water-saving improvements in an amount equal to at least 5% of the mortgage loan amount. These improvements can significantly reduce energy and water consumption at the property, thereby improving the operating income for the owner, lowering utility costs for tenants and the updating the property.

PRIVATE AND PUBLIC SECTOR COMMITMENTS

The commitments President Obama announced today span every corner of the United States, from a 75 year old vegetable farm in California to a rural electric coop in Kentucky, from the Minneapolis Public Housing Authority to a homebuilder in Texas, and from a retailer with stores all across America to research universities in Pennsylvania, Maryland and Virginia, showing that no matter where you live using clean sources of power and cutting energy waste is not an abstract idea, it’s a smart choice for American businesses and families.

Commitments to Advance Solar Deployment. Solar is becoming affordable and accessible – a smart option – for a growing number of families and businesses. Supported by historic investments in research, development, and deployment, the price of solar technologies has decreased and the U.S. solar market has experienced rapid growth since President Obama took office. Last year was a record-breaking year for new solar installations, and the amount of solar power installed in the United States has increased nearly eleven fold – from 1.2 gigawatts in 2008 to an estimated 13 gigawatts today, which is enough to power more than 2.2 million American homes.

Today, responding to the President’s call to action on solar deployment, leaders from across sectors are making commitments that will expand the use of solar in our homes, businesses, and schools – creating jobs and cutting carbon pollution. For these leaders, solar makes economic sense today; it’s something that works now:

MULTIFAMILY AND AFFORDABLE HOUSING LEADERS: Across the country, low-income housing leaders and service providers are stepping up to deploy solar on affordable multifamily properties; because solar makes economic sense for them, brings an economic boost to struggling communities and families, and it’s something that works now.

WinnCompanies, the largest manager of affordable multifamily housing in the nation, has developed over 1 megawatt (MW) and is setting a goal of an additional 4 MW by 2020.
Hispanic Housing Development Corporation, through its subsidiary Affordable Community Energy, Inc., a non-profit providing housing and energy services to low-income communities across the Midwest, is on track to install 600 kW of solar by May and commits to add 530 kW of additional solar by the end of 2015.
Stewards of Affordable Housing for the Future (SAHF) and its eleven members joined together to reduce energy and water consumption by 20 percent by 2020 through their Big Reach Initiative. These efforts have the potential to contribute 500,000 therms and 4 MW of solar PV.
Enterprise Community Partners, which facilitates affordable multifamily housing across the country, is announcing a 16 MW target totaling $40 million in investment by 2020 in D.C., Denver, Boston, LA, and Chicago.
GRID Alternatives, a nonprofit organization, will help install 100 MW of solar power on affordable single-family and multifamily housing across the country by 2024; GRID Alternatives has also launched a new Tribal Solar Initiative to ensure that American Indian tribes have access to the benefits of solar power.
National Housing Trust, an innovative affordable housing developer and owner, will install 400 kW of solar PV and 15,000 therms of Solar thermal this year; in 2015, will add another 100 kW of PV and 5,000 therms of Solar Thermal.
LINC Housing, a non-profit organization that builds, owns, and operates affordable housing, is committed to installing 826 kilowatt (kW) of solar PV across over 1,000 units of affordable housing in California by 2016.
Denver Housing Authority recently installed 2.5 MW of solar and continues its commitment of adding solar to every new phase of redevelopment as evidenced by its installation of another 100kw on Mariposa Phase VI starting construction in the fall of 2014. The housing authority is also developing a comprehensive district wide energy design program for PV and g‎eothermal energy under a micro-utility structure for Denver’s 100 acre Sun Valley neighborhood.
EAH Housing, a nonprofit housing development and management corporation, has 3.1 MW of on-site solar PV in their affordable housing portfolio and is committed to an additional 20 projects – a total of nearly 10 MW.
Black Rock Solar, a non-profit clean energy organization, has a goal of installing 11 MW across housing and community facilities by 2017.
Community Power Network is setting a goal of 1 MW of solar installed across 200 projects in DC, MD, and VA by 2015.
Yolo County Housing Authority is setting a goal to install of 900kw of solar by 2016.
Global Green USA is setting a goal to install 1 MW of solar by 2017.
Affirmed Housing Group, a multi-family affordable housing provider, will add 550 KW of on-site solar across 2 projects.
Bayview Community Development Corp., a multi-family affordable housing provider, will add 400 KW of on-site solar across 1 project.
Chelsea Investment Corporation, a multi-family affordable housing provider, will add 6.5 MW of on-site solar across a total of 20 projects.
Community Housing Works, a multi-family affordable housing provider, will add 3.5 MW of on-site solar across a total of 22 projects.
Community Advancement Corp., a multi-family affordable housing provider, will add 255 KW of on-site solar across a total of 7 projects.
The Core Companies, a multi-family affordable housing provider, will add 1.6 MW of on-site solar across a total of 4 projects.
Horizon Development/Preservation Partners, a multi-family affordable housing provider, will add 450 KW of on-site solar across a total of 2 projects.
Innovative Housing Opportunities, a multi-family affordable housing provider, will add 500 KW of on-site solar across a total of 5 projects.
Mutual Housing California, a multi-family affordable housing provider, will add 800 KW of on-site solar across a total of 6 projects.
Standard Property Company, a multi-family affordable housing provider, will add 2.6 MW of on-site solar across a total of 4 projects.
The Reliant Group, a multi-family affordable housing provider, will add 800 KW of on-site solar across a total of 6 projects.
Urban Housing Communities, a multi-family affordable housing provider, will add 300 KW of on-site solar across a total of 3 projects.
VITUS, a multi-family affordable housing provider, will add 450 KW of on-site solar across a total of 1 project.
Wakeland Housing and Development Corporation, a multi-family affordable housing provider, will add 542 KW of on-site solar across a total of 4 projects.

HOMEBUILDERS AND HOME IMPROVEMENT LEADERS: Part of tapping the full potential of solar means making it accessible for new homebuyers and homeowners. This group of leaders is stepping up to make it possible for more new homebuyers and homeowners to have solar available as an option.

• The Home Depot will position over 1000 stores to be learning centers for residential solar power systems by 2016. Home Depot customers in AZ, CA, CO, CT, DE, MA, MD, OR, NJ, NY, and PA can already choose solar.
• Lennar is making a significant commitment to more than double in size over the next several years, a groundbreaking program that includes solar as a standard feature in new homes in 80 communities across the country where consumers purchase the solar energy produced on their roofs at a guaranteed 20% discount off retail electricity rates for 20 years.
• Pulte Homes offers solar as an option in every current community in Southern California and Nevada as well as 3 communities in Arizona where solar is a standard feature. This will result in over 11,200 new homes with solar.
• Balfour Beatty is working to deploy solar on military base housing – including a project for 13.2MW on Fort Bliss, fulfilling more than 25% of the housing community’s electricity needs.
• CertainTeed Roofing, a manufacturer of building materials for both commercial and residential construction, is committing to solarize 16,000 homes, equivalent to 81 MW, over the next three years in the U.S.
• Scudder Roofing, a full-service residential and commercial contractor has a new goal to install solar for over 500 homes and commercial entities over the next three years.
• State Roofing Systems is committed to installing 3 MW of solar over the next three years.
�� Beutler Corporation, one of the largest HVAC companies in the U.S., is committed to 5.4 MW of residential and 3 MW of small commercial solar over the next three years.
• 22 New Homebuilders, partnering with the Department of Energy, announced commitments to construct nearly 10,000
• Zero Energy Ready Homes – outfitted for solar – supporting the DOE’s goal of 75,000 Zero Energy Ready Homes by 2020:
· Meritage Homes
· Garbett Homes
· New Town Builders
· HouZE
· Clayton Homes
· HAO Texas Builder
· Midtown Residential
· Mandalay Homes

Palo Duro Homes
Community Empowerment
Green Team Real Estate
CCRB
Mutual Housing California
Hyde Homes
Nexus Energy Homes
Bruns Realty Group
Cobblestone
M Street Homes
Caribella Homes
Christian Builders
GEOS
David Weekly Homes
Desert Alliance for

RURAL ELECTRIC COOPERATIVE LEADERS: Across the country, member-owned, not-for-profit rural electric cooperatives are deploying a variety of solar options, including more than fifty community solar projects. Today, America’s electric cooperatives are announcing 199 rural electric co-ops in 27 states and American Samoa are planning solar installations that will provide over 150 MW of new solar capacity by 2020.

COMMERCIAL SECTOR LEADERS: Hundreds of American-based companies are choosing solar power as an energy source. Today, the following commercial sector leaders are rising to the President’s Challenge and committing to increase onsite solar generation at their facilities and within their supply chains:

Wal-mart commits to double the number of onsite solar energy projects at U.S. stores, Sam’s Clubs, and Distribution Centers by 2020, as part of their commitment to drive the production or procurement of 7 billion kWh of renewable energy by the end of the decade.
Kaiser Permanente commits to increase its onsite generation capacity in 2014 with additional solar installations at numerous locations, including thier new Oakland Medical Center, the Hidden Lake Medical Offices in Colorado, and at various Hawaii sites; and is investigating adding as much as 40 megawatts of onsite solar power capacity through installations at dozens of our medical campuses throughout California.
Ikea commits to use renewable energy generation at their new U.S. IKEA store locations, when feasible, with a focus on evaluating the viability of using solar and geothermal generation. Ikea is also announcing that their Miami, Florida store, which will open in summer 2014, will be their 40th US location with solar PV.
Apple, already running its data centers on 100% renewable energy, is now building a 2.8 million square-foot headquarters which will also run entirely on renewables, including 16 MW of rooftop solar. Apple has committed to powering all its facilities with green energy sources and has already achieved 94% of that goal.
Clif Bar is launching their 50/50 by 2020 initiative, asking their supply chain partners to use green power -including solar –for the electricity used to make their ingredients, packaging and products. Their goal is to have 50 key supply chain partners transition to at least 50% green power by 2020.
Viridity Energy will drive the creation of 300 MW of new battery storage for solar and other renewables by 2017. This will help make our electric grid more robust and efficient, while enabling it to accept more power from solar and other renewable energy sources.
Bonipak, a 75-year old farm and one of the largest growers and processors of fresh vegetables distributing to retailers, wholesalers and food service customers worldwide has set a goal to install over 2 MW of solar over the next year
Taylor Farms, which partners with hundreds of farmers across North America to produce ingredients for salads, set a goal to install 1 MW of solar.
Yahoo is committing to add a solar installation to their Sunnyvale headquarters by early 2015 to complement their efforts to source from clean energy.
Google is announcing a $1 million prize to develop the next generation of power inverters, enabling solar power in more homes and helping bring electricity to the most remote places on Earth.

LEADING FINANCIAL INSTITUTIONS: Private finance is critical to scaling solar and renewables, which make sound, reliable investments. The following financial institutions are leading the way, announcing today new plans to grow solar and renewable installation through large scale investment and innovative programs.

Connecticut’s Green Bank, the Clean Energy Finance and Investment Authority, commits to help fund 75 MW of solar PV in Connecticut by 2016. The Green Bank attracts private capital by leveraging public financing at a ratio of 9 to 1, enabling Connecticut to go solar at a lower cost to ratepayers.
Citi is committed to continue expanding its finance efforts to scale distributed generation solar in the US. Citi will support public and private sector clients, and employ a number of financing mechanisms and partners, with a total financing target of $1 billion over the next three years.
Boston Community Capital, an innovative community development financial institution supporting low-income communities will develop four megawatts of solar energy projects primarily for affordable housing developments and community-based nonprofits by, doubling their program’s current capacity.
In 2012, Goldman Sachs extended its long-standing commitment to support renewable energy by establishing a global target of $40 billion in financings and co- investments towards clean technology over the coming decade. Of this amount, today it announces a target of $10 billion for distributed generation renewables, including solar, in the U.S. through 2021.

Commitments to Advance Energy Efficiency Investments. In February 2011, President Obama launched the Better Buildings Challenge to help American commercial and industrial buildings become at least 20 percent more energy efficient by 2020. More than 190 diverse organizations, representing over 3 billion square feet, 600 manufacturing plants and close to $2 billion in energy efficiency financing have stepped up to the President’s Challenge. Through 2013, Partners are on track to meet the 2020 goal and on average, are cutting energy use by 2.5 percent each year. Partners have saved 36 trillion BTUs and $300 million since the Better Buildings Challenge began.

Today, responding to the President’s call to action on energy efficiency, leaders from across the country are making commitments that will advance energy efficiency investments.

25 new states, cities, school districts, multifamily housing, retailers, food service, hospitality and manufacturing organizations are announcing that they are joining as Partners in the President’s Better Buildings Challenge, committing to improving the energy efficiency of more than 1 billion square feet, an area the size of 17,000 football fields, of additional floor space by at least 20 percent by 2020.
Anne Arundel County Public Schools commits 13 million square feet of school buildings.
Balfour Beatty Communities commits 50 million square feet of multifamily residential housing across 44,000 units.
Capitol Hill Housing commits more than 1 million square feet of multifamily residential housing.
Commonwealth Partners commits 11 million square feet across its commercial properties.
Cuyahoga Metropolitan Housing Authority, the 7th largest Public Housing Authority in the country, commits its multifamily portfolio over 10,500 units.
Eastman Chemical commits 8 plants.
General Mills commits 27 plants.
General Motors commits 31 plants covering 84 million square feet.
HARBEC commits 1 plant covering 50,000 square feet.
Hilton Worldwide commits its company owned portfolio of 14 million square feet.
Jonathan Rose Companies commits 2.7 million square feet across 2,855 multifamily housing units.
City of Margate, FL commits 120,000 square feet.
MGM Resorts International commits 78 million square feet.
Minneapolis Public Housing Authority commits almost 4.5 million square feet of affordable multifamily housing.
New Bedford Housing Authority commits 2.6 million square feet across 2500 multifamily housing units.
Penn State University commits 28 million square feet.
Rockford Housing Authority commits 3 million square feet across more than 1,000 multifamily housing units.
City of San Diego, CA commits 9.5 million square feet.
Towson University commits 5.5 million square feet campus-wide.
University of Virginia, commits 15 million square feet.
UTC commits 159 plants covering 38 million square feet.
Walmart commits 850 million square feet.
Whole Foods Market commits close to 13 million square feet.
VLV commits 25,000 square feet of multifamily residential housing.
Volvo commits 8 plants covering 5 million square feet.
Wishrock Investment Group commits 8 million square feet across 8,000 multifamily housing units.

Today, 7 new financial allies are also stepping up to the Better Buildings Challenge. These leadings organizations have committed to deliver innovative financing solutions and products to help owners and managers of multifamily housing and other organizations with energy efficiency upgrades. The new financial allies include:

California Housing Partnership Corporation commits $25 million.
Clean Energy Finance and Investment Authority (CEFIA) commits $25 million.
Enterprise Community Partners, Inc. commits $25 million.
Hannon Armstrong commits $250 million.
Local Initiatives Support Corporation (LISC) commits $25 million.
Low Income Investment Fund commits $2.5 million.
Triple Bottom Line (TBL) Fund commits $25 million.

20 Better Buildings Challenge Partners are committing to participate in a new expansion of the Better Buildings Challenge to cut energy wasted from the inefficient use of water. The commercial and industrial sectors account for more than 25% of the withdrawals from public water supplies and many organizations in these sectors may have savings opportunities of 20 to 40%. The efficient use of water resources results in lower operating costs, a more reliable water supply, and improved water quality. Energy is also required to transport and treat water, saving water also saves energy. Given this nexus, thru the Better Buildings Challenge, DOE will is working with a small, diverse group of Better Buildings Challenge Partners to demonstrate successful approaches to saving water and decreasing their utility bills.

Aeon
CampusCrest Communities
City of Atlanta
Cummins
Eden Housing
Ford Motor Company
City of Fort Worth
General Motors
HARBEC
Kohl’s Department Stores
NHT/Enterprise Preservation Corporation
Nissan North America
Poudre School District, CO
St Gobain
Staples
TIAA-CREF
Tonti Properties
Transwestern
Trinity Management
City of West Palm Beach

Community Organizations Create Holistic Approach to Poverty Reduction in Los Angeles

LATIN POST

By Nicole Akoukou Thompson
June 25, 2014

The transformation of Los Angeles neighborhoods through holistic approaches to poverty reduction (e.g., high quality schools and technology services) is underway. Youth Policy Institute, Little Tokyo Service Center and LINC Housing, three of the nation’s leading nonprofits, are spearheading new efforts to revitalize the economic landscape of Los Angeles by enabling successful cradle-to-college-to-career transitioning for students and the development of better coordinated programs and services for the community, all with the support of Partners in Progress (PIP).

Los Angeles is 48.2 percent Hispanic, so the Latino community is likely to gain greatly from PIP’s involvement with community service organizations. PIP is funded by the Low Income Investment Fund (LIIF) and Citi Foundation, and they are looking to boost programs that are at the forefront of urban planning and development.

“It’s a paradigm shift in how we’ve approached our work in previous decades,” said Nancy Andrews, president and CEO of the Low Income Investment Fund in San Francisco. “In many ways, this is the vision that actually returns to the original vision of the War on Poverty.”

LIIF and Citi Foundation have thrown their support behind a total of 13 national programs, which include Asian Americans for Equality, BRIDGE Housing, CASA de Maryland, Chicago Community Loan Fund & West Humboldt Park Family and Community Development Council, Community Solutions/Brownsville Partnership, East Bay Asian and Local Development Corporation, Fairfield County Community Foundation, Frazier Revitalization Inc., Jubilee Housing Inc., Neighborhood Housing Services of South Florida, and the three aforementioned Los Angeles-based programs.

PIP looks to advance economic progress in low-income neighborhoods, transforming the community development field and the lives of the people in those communities. PIP is built on the “community quarterback” conceptual model, whereby trusted local organizations align objectives, resources and efforts among stakeholders to create resilient and strong neighborhoods and paths to economic success.

Throughout 2014, PIP will provide $3.25 million to the 13 quarterbacks, helping the foundations to develop, expand and network and to improve connectivity to housing, transportation, jobs, community safety, health care, childhood development, educational opportunities and many other services. In addition, the 13 grantees will participate in a “learning community,” where they share learned skills and glean best practice, including coaching, skill building and knowledge sharing. The communal learning process ensures that each organization becomes stronger and will likely inspire other community organizations to collaborate and magnify their reach and effectiveness.

“All of these different initiatives are overlapping, and Partners in Progress is a vehicle that allows us to build partnerships,” the director of community development at the Youth Policy Institute, Angelica Solis said to Al-Jazeera. “It really opens up opportunities.”

Check out Partners in Progress on Facebook and Twitter.

Copyright ©2014 Latin Post
Reprinted with permission.

Fannie Mae Expands Green Refi Program

MULTIFAMILY EXECUTIVE MAGAZINE

By Lindsay Machak
July 2, 2014

When LINC Housing Corp. acquired a Santa Ana property in 1996, some light renovations and maintenance work was done to help maintain the community, which was built in 1956.

By 2012, City Gardens was nearing the 15th year of low-income housing tax credit compliance and the Long Beach, Calif.-based nonprofit decided the property was in need of a full-fledged makeover, says Samara Larson, director of sustainability.

After doing an assessment of the property, the best option to get all the work done and to upgrade the community with green features was to go through a then-new program with Fannie Mae.

A $19.4 million refinance loan made City Gardens the first project to go through the Green Refinance Plus program. Being able to get money to do eco-friendly renovations was the most alluring part of this program, Larson says. The total rehab cost was about $2.8 million, including approximately $520,000 for the green retrofitting.

“We replaced boilers and put in energy-efficient lights in common areas and apartments,” she says. “We put in a solar domestic hot water system. We did low flow plumbing fixtures. We did weatherization and we did a project to change out the pilot lights to go to electronic lighters and some insulation work.”

Post-renovation, the property is seeing a 20 percent savings on energy costs and looking toward a 34 percent return on investment over six years.

However, Fannie Mae officials announced in May a new version of the program, dubbed the Green Preservation Plus. The program, an extended version of Green Refinance Plus, offers financing to acquire affordable housing developments or refinance existing Fannie Mae multifamily affordable housing (MAH) loans.

Larson says the success of the City Gardens renovation has convinced her company to continue using the Fannie Mae execution where it makes sense. At press time, LINC Housing was in the process of securing a Green Preservation Plus loan for the renovation of a Fresno, Calif., property.

The new version of Fannie’s green program allows cash-out refinancing — when a property is refinanced for more than it owes, and the owner procures the difference — to pay for fees and renovations that weren’t included in the first version of the program, says Chrissa Pagitsas, director of Fannie Mae’s Green Initiative.

“The need to expand it really came because the original program was not flexible enough,” Pagitsas says. “What we had done with HUD was not allow affordable housing owners to do cash-outs allowing them to access the equity of their loan to pay for other things — fees and other costs.”

The program also provides additional loan proceeds through lower debt service and higher loan-to-value ratios. Eligible properties must be 10 years or older and meet MAH income and rent restrictions.

Since the program’s inception, Fannie Mae reports a volume of more than $56 million through the first quarter of this year, with deals for the expanded program already in the pipeline.

Lindsay Machak is an Associate Editor for Multifamily Executive. Connect with her on Twitter @LMachak.

Copyright ©2014 Multifamily Executive Magazine
Reprinted with permission.

Retrofit Package Helps Low-Income California Community Go Solar

PV SOLAR REPORT

PV Solar Report
September 23, 2014

Village at Beechwood, a low-income apartment community in Lancaster, California, might just become a model used nationwide for sustainable housing for low-income communities. This is thanks to a $2.46 million research project being funded by the California Energy Commission and the U.S. Department of Housing and Urban Development, and lead by the Electric Power Research Institute.

The goal of the project is to develop a retrofit package that will make Village at Beechwood more energy and water efficient, and as close to near-zero net energy as possible. The package will include insulation, ENERGY STAR kitchen appliances and efficient lighting, an efficient boiler, and smart irrigation controllers with new sprinkler heads.

The package will also provide an on-site solar PV system that will produce 145,000 kWh per year to offset energy use, along with a solar domestic hot water system that will generate over 4,300 therms per year. It will be installed by eight residents from the apartment community who will be provided green job training from Everyday Energy and Labor Ready. The training will qualify them to find employment in the solar industry after the installation.

What better place to start a program like this than Lancaster, whose mayor has made major commitments to solar?

Overall, this project will bring gas usage down by 45%, electricity down by 33%, and irrigation water down by 21%. The two apartments that have already received the package and been completely retrofitted have saved 70% of their net energy, and now an additional 28 units have received approval for retrofitting. The hope is that these units will provide a model that other apartment units — beyond just the ones in Beechwood — can easily replicate.

Project backers and collaborators also include LINC Housing, SEED Partners, BiraEnergy, Southern California Gas Company, and Southern California Edison.

Copyright ©2014 PV Solar Report
Reprinted with permission.

Greenbuild 2014: Financing Green Retrofits for Affordable Housing

MULTI-HOUSING NEWS ONLINE

By Mike Ratliff, Senior Associate Editor
October 24, 2014

New Orleans — The inherent complexities of the affordable sector make financing green retrofits at affordable properties particularly demanding task. Yet our industry has some very creative professionals that are turning to numerous sources to make federally assisted properties more efficient. A Greenbuild panel titled “Financing Green Retrofits for Affordable Housing: A Polyphonic View” examined the challenges and emerging solutions on Thursday in New Orleans.

There are four major challenges, one of which is accessing capital, says Darien Crimmin, vice president of energy and sustainability at WinnDevelopmnet.

“If you walked into a bank to finance a retrofit for affordable housing, they would laugh at you and you would leave without a loan,” Crimmin says. He adds that there are some mission driven banks sprouting up to fill the gap, but landing capital is no easy task. Money can end up coming from a number of sources like Fannie Mae’s new Green Preservation Plus execution option, state utility assistance programs, multifamily energy efficiency programs and weatherization rebates.

Concerns over returns are another barrier. There are three factors at play here: worries over whether or not savings will materialize; utility rate volatility (i.e. natural gas has dropped 20 percent over the last five years); and concern over the ‘R’ factor, which is this case stands for Residents.

“We have seen the utmost efficient buildings in the world with their lights left on and their windows wide open in winter,” Crimmin adds.

The third major challenge is regulatory and utility barriers, adds Rebecca Schaaf, vice president of the energy division at Stewards of Affordable Housing for the Future. Taking on debt is precluded in some properties. The split incentive of owners taking the risk while residents reap the savings is another struggle. HUD is trying to address the problem.

“Rents are set on budgets. If owners reduce their own utility costs, that means a reduction in budget and thus savings on rent that are ultimately passed on to HUD,” Schaaf says. “Well HUD is now offering options for owners through the Better Buildings Challenge to access those savings.”

Schaaf also addressed the fourth big hurdle, which in human resources. Some owners just don’t have the expertise on staff. Having an energy manager is often not enough.

“Third parties are a great way to bring in expertise and resources without having to hire,” she adds.

Two case studies were presented to showcase the emerging solutions used to surmount these challenges.
Hunter Johnson, president & CEO of LINC Housing, first detailed a recapitalization of a 274-unit garden-style community in California that was hitting the 15-year LIHTC mark. LINC bought out their co-owner and closed the first Fannie Mae Green Plus loan (now known as Green Preservation Plus). There were, however six total layers of financing, Fannie being the only one that was conventional. The five non-conventional layers included California’s Energy Savings Assistance Program, the Multifamily Energy Efficiency Rebate, California Solar Initiative, Multifamily Affordable Solar Housing and Weatherization. Approximately $400,000 of the $715,000 total cost was comprised of rebates. LINC put up roughly $318,000 that had to be paid back.

“But we are seeing $80,000 a year in savings, making this essentially a bit over a four-year payback,” Johnson says. “We think this is good, and consistent in what we can offer other people.”

In terms of the impact on utilities, the retrofit was able to secure a 45 percent reduction in water use, a 14 percent reduction in gas consumption and a 12 percent reduction in electricity use.

LINC also took some creative steps to address the ‘R’ factor. A ‘healthy and sustainable homes coordinator’ on the central staff is tasked with helping onsite staff to help residents be more efficient. LINC also found that it can bring the topic of energy use into the homes through the property’s youngest residents, who are taught to be ‘energy detectives’ in the free after school program.

“We also offer job training as we are putting solar on the roof,” Johnson adds. “After the training program with the solar installer, they have enough skills to be part of the group putting solar on their own building.” LINC also connects the freshly trained residents with job placement services.

The second case study took a look at a how an energy services company (ESCO) known as Affordable Community Energy Inc. retrofitted a 1,174-unit portfolio serving seniors, the disabled and families. The firm targets the full range of energy efficiency programs: water and electricity efficiencies, as well as all the renewables and cogeneration that can fit on an affordable site.

ACE takes on the cost of improvements and the cost of operations. During the life of the agreement, they take a substantial portion of the measured savings in energy, and a smaller percentage of the water savings. They also charge the customers for the electricity produced on site at a rate 10 percent lower than what they would have been paying their utility company. This covers the owner’s hurdles of capital and concerns on return.

“Because we are paying for it, we believe we are eating most of the performance risk,” says Jeffrey Greenberger, COO at ACE.

For this particular portfolio, which involved all types of properties in order to diversify risks, the total project cost was $6.25 million. Of that, $4 million went to 2,400 solar panels and 7 combined heat and power units. The remaining $2.25 million went to energy efficiency improvements, while water conservation was financed separately. The end result was a 37 percent reduction in electricity use, and a 15% reduction in natural gas consumption.

Greenberger adds that ACE’s major challenge is on the capital side. The company has its own layered approach that starts with Federal tax credits for renewables and cogeneration. Their scale allows the company to pursue after New Markets Tax Credits (NMTC), as well as state and utility incentives.

Greenberger reiterated that these two case studies represented just two creative solutions. A myriad of other ways exist — and will emerge — within the affordable sector to meet the increasing demand for retrofits.

“We believe strongly that having renewable energy sources at affordable housing is critical to keeping it affordable for the long term.”

Copyright Multi-Housing News Online.
Reprinted with permission.

ANOTHER VIEW: Healthy Housing Helps Us Thrive

GRUNION GAZETTE

By Kerry Gallagher, Another View Guest Writer
April 20, 2015

Jobs, parks, schools and open space help define a city. But our housing — our homes — deeply characterizes a community. Our home is a space where we find rest, restore relationships and find a sense of dignity. Having a healthy home helps us thrive.

But many Long Beach residents do not have a safe and healthy home that they can afford. The lack of housing affordability in the city of Long Beach affects everyone: from college students to tech professionals, from health care providers to teachers. For thousands of Long Beach residents, their home situation will have a direct impact on their success and contributions to our city.

The lack of housing affordability is most prominent amongst renters. Sixty percent of Long Beach residents rent — that’s 280,000 people. And these renters help fuel our workforce. With a thriving tourist economy, jobs that show the most growth in Long Beach in the next 10 years are low-wage, service-sector jobs.

For housing to be affordable ¡ at 30% of one’s monthly income — for a person working full-time and making a living wage of $13/hour, monthly housing costs should be $680. What kind of housing can one find for $680? A garage, a trailer, or a room perhaps, but certainly not a quality living space for a family. To put it in even greater perspective, a person earning minimum wage would have to work 137 hours per week in order to afford to rent a two-bedroom apartment in Long Beach.

So then, where will Long Beach’s workforce live?

As jobs increase but the amount of affordable housing remains stagnant, many workers are forced to make the move out of the city and into surrounding areas. Others choose to stay in the city, but are living in overcrowded conditions — like the 20,000 families who share homes in Long Beach — and lower quality homes. This means workers are making more sacrifices including longer commutes, poor living standards and overcrowded homes, in order to make a sustainable living.

Vanessa is a good example of the choices that working families have to make to try and secure quality housing. She and her kids lived in a home with cracked windows and no heating system, which made the winter months grueling. She held off reporting for fear of a rent increase, but finally decided to say something. After reporting the issue to her landlord on multiple occasions and no repairs made, she decided to take action and report the issue to code enforcement.

After a visit from a city inspector, Vanessa’s landlord decided first to raise the rent, and then issue Vanessa an eviction notice. She tried every way to keep her home, including fighting it in court, but with few resources as a low-income renter, she soon was forced to leave her home and live in her car. Vanessa became another number in our homeless community in Long Beach. With limited options within her price range, Vanessa is still trying to find a quality space to call home.

Our housing affects all areas of our life and community health. When people have stable, affordable housing, kids do better in school, workers are more productive and our local economy thrives. Housing is a building block of community health, and to be the best Long Beach, we must address the growing housing need.

Work is being done on the ground here in Long Beach and across the state and country to begin to address the need for safe and quality housing that is affordable for all Long Beach residents. Housing Long Beach is committed to improve, preserve and increase the supply of affordable housing for the wellbeing of Long Beach residents by training grassroots leaders and working with elected officials to find solutions to these problems.

We partner with nonprofit housing developers like LINC Housing and housing coalitions like HomeMatters to identify and work toward comprehensive solutions. We all stand together and urge individuals, businesses and nonprofits to join the movement and spread the word about the importance of quality, affordable housing.

For more information about how you support affordable housing, visit www.housinglb.org.

Kerry Gallagher is Executive Director of Housing Long Beach.

Cal State Long Beach students earn public relations honor

LONG BEACH PRESS TELEGRAM

By Josh Dulaney
May 2, 2015

Long Beach, CA — Public relations students from Cal State Long Beach recently earned honorable mention in the 2015 Bateman Case Study Competition sponsored by the New York-based Public Relations Student Society of America.

Sixty teams from major universities across the U.S. entered the competition, which called on students to raise awareness about affordable housing, in partnership with Home Matters, The Plank Center for Leadership in Public Relations and Edelman.

CSULB’s team partnered with LINC Housing and Housing Long Beach, created the hashtag #HomeTeamChallenge, held a public forum with experts and conducted outreach in local high schools, creating the RETHiNKHOME Contest that saw students use creative writing and other art forms to express what home means to them.

“The majority of them, what we found was, home is not a structure, it’s wherever your feel loved, where you feel comfortable, where you feel like yourself,” said Cheyenne Goguen, a CSULB Bateman Team member and senior journalism major.

The team was among 13 honorable mentions. The three teams selected will present their campaigns Friday to judges in Chicago.

“I think we did a pretty good job,” Goguen said.

Goguen was moved by the issue of affordable housing in Long Beach and across the state. In the teams’ research, they discovered many teachers and professors cannot afford a house, and the issue can affect students struggling to balance study, work and maintaining a solid foundation at home.

“It really affects more people than we think,” she said. “After doing it, I really care about how we get all these people in Long Beach to care about it.”

The Bateman Case Study Competition is PRSSA’s premiere national case study competition for public relations students, according to its website. Past competitions have included campaigns to raise awareness about the consequences of youth bullying, and advancing ethical behavior in academic performance by students.

Pleasant View Apartments in Fresno completes $1.6 million renovation

THE FRESNO BEE

By BoNhia Lee
May 7, 2015

The owners of a central Fresno apartment complex have completed a $1.6 million renovation of the 46-year-old development, officials announced this week.

The 60-unit Pleasant View Apartments, at 3513 N. Pleasant Ave., underwent two phases of construction. The first was the addition of a 1,325-square-foot community center and playground completed in 2013.

Building renovations followed. Apartment kitchens received new cabinets, flooring, paint, refrigerators and low-flow faucets. Three apartment kitchens were made ADA-compliant.

The buildings also received new roofs, exterior paint, and energy-efficient windows. Deck landings were repaired, parking lots were paved and dry rot and termite damage were fixed.

Community Development Trust, a national real estate investment trust company, and LINC Housing Corporation, a Long Beach-based nonprofit affordable homebuilder, announced the renovation project back in 2012 when the companies partnered to buy the complex for $2.5 million.

“When we acquired Pleasant View, we wanted to be part of the solution in a community that was hit hard by the economic crisis,” said Rebecca Clark, president and chief executive officer of LINC. “We believe housing is the foundation for stabilizing families and communities. We’re proud to work with CDT and our other partners to bring quality housing to this area, and we’re looking to do more to help.”

California affordable housing coalition back rooftop solar power

CALIFORNIA SOLAR ENERGY INDUSTRIES ASSOCIATION

By PennEnergy Editorial Staff
October 19, 2015

A group of fourteen affordable housing organizations sent a letter to the California Public Utilities Commission (CPUC) today declaring their support for the continuation of solar net metering. The MASH Coalition told the CPUC that California’s low-income tenants can and will continue to benefit from solar, should the state send a strong signal that it is committed to the future of rooftop solar.

The filing is a response to actions by the state’s investor-owned utilities proposing to make California the first major solar state to abandon net metering, a cornerstone policy of every successful solar market in the country. The utility proposals would put future customers’ ability to go solar at risk. The CPUC is expected to determine the fate of net metering in California by December 31, 2015.

“Bringing solar power to our neediest communities has been helped by incentives from the Multi-family Affordable Solar Housing rebate program combined with the availability of virtual net energy metering,” wrote Randall Simmrin, of The MASH Coalition. “Without net metering, and specifically virtual net metering, California’s affordable housing community would not be able to afford to bring the benefits of solar to our low-income tenants.”

The letter was signed by Affirmed Housing, Bayview Community Development Corporation, Chelsea Investment Corporation, CHW, The Core Companies, EAH, the Housing Authority of the County of Santa Barbara, Innovative Housing Opportunities, Levy Affiliated, LINC Housing, Many Mansions, UHC Communities, Standard Property Company + Global Advisors, and Vitus Innovative Development. The coalition represents 28 megawatts of planned installations across California.

“Net metering gives all residential markets, including low income markets, access to clean energy and, by doing this, will reduce the energy bills of our most vulnerable households, improve the environmental quality of our communities, and help California meet its renewable energy goals,” said CEO and Co-founder of Everyday Energy Scott Sarem.

Net energy metering is a program that compensates solar consumers for any excess electricity they export to the grid. The program has helped fuel the explosive growth of solar across the state. Before the end of this year, the CPUC will decide on the future of net energy metering, including among options proposed by the three investor owned utilities, PG&E, SCE, and SDG&E, all of which include fees and rates designed to make solar uneconomical in order to protect the utility’s monopoly.

“Solar should be for everyone,” said Bernadette Del Chiaro, Executive Director of CALSEIA. “Maintaining net metering lets us continue to bring the benefits of rooftop solar to all parts of the economic spectrum.”

Construction Starts on New Apartments for Formerly Homeless Households
and Low-Income Families

MULTIFAMILYBIZ.COM

Willowbrook, CA – Jan 4, 2016 �� The community, Los Angeles County officials, LINC Housing and other partners will gather this week to celebrate the start of construction of Mosaic Gardens at Willowbrook, a 61-unit affordable housing community for formerly homeless households and low-income families.

Thirty-one apartments are for formerly homeless residents. The new development is part of LINC’s work to combine housing and healthcare as a holistic approach to improving people’s lives and transforming neighborhoods. With support from the Partners in Progress grant program with Citi Foundation and Low Income Investment Fund, LINC has explored various approaches to developing a housing and health model that can be replicated. LINC sees partnerships with the health industry and the creation of permanent supportive housing as opportunities to create real neighborhood change.

Within a half mile of the property, residents of this community will have access to many amenities including an elementary school, public transportation, retail shopping, pharmacies and other service opportunities. The properties are within a mile of the Martin Luther King, Jr. Multi-Service Ambulatory Care Center, and the Willowbrook/Rosa Parks Metro Station, both of which are undergoing major renovations.

Mosaic Gardens at Willowbrook has strong support from Los Angeles County and the community. As homelessness rises, leaders in this tight-knit community want to work together with the public and private sectors to make positive changes in the neighborhood. The $20-million development is due to be completed in spring 2017.

Willowbrook celebrates groundbreaking for 61 low-income homes

FOX 11 LOS ANGELES

By Zohreen Adamj
January 7, 2016

Getting people off the streets …and into homes. L.A County officials had a groundbreaking Thursday in WIllowbrook for a lot they hope 61 low-income and homeless families will call home next year.

Pierre Cooper is one of the people who hopes to apply. He’s been homeless for nearly 20 years and has been living in abandoned garages, various shelters and the streets.

“You try to warm up the best way you can but you can’t because it’s frigid and you can’t really sleep especially because you get sick,” says Cooper.

He prays the empty lot on WIllowbrook Avenue could one day be a place he calls home.

Cooper used to be an electrician, but an accident on the job prevents him from working.

“I fell from about 15 feet up,” says Cooper.

He now battles sciatica and arthritis and says the symptoms get worse sleeping in the cold.

“I had been to shelters. Sometimes I sleep on a bus stop. I’ve even slept in the hospital sometimes,” says Cooper.

Cooper says he’s spent at least 30 nights in the Emergency Room.

The county believes people like Pierre would cost taxpayers less if they were given a home.

They hope to provide residents who move in to Mosaic Gardens with healthcare services.

They also promise a community garden for residents to grow their own food.

It’s a life that for now Pierre can only imagine.

“It’s been my dream. It has been my dream. And I just pray to God it will come true,” says Cooper.

Mayor Garcetti’s $8.7 billion Los Angeles budget includes big commitment
to fight homelessness

LOS ANGELES DAILY NEWS

By Dakota Smith
April 20, 2016

Amid growing alarm about the state of homelenessness in Los Angeles and encampments stretching from Sun Valley to San Pedro, Mayor Eric Garcetti unveiled a sweeping plan Wednesday to develop or sell city-owned property to raise money for homeless housing.

The real estate proposal, a major component of the mayor’s $8.7 billion budget for fiscal year 2016-2017, comes months after Garcetti pledged to spend at least $100 million to fight homelessness annually.

Eight city properties would be developed into affordable housing or sold to raise money for housing under Garcetti’s plan. The property list includes an unused fire station in Westchester and a hillside parcel near Hansen Dam. Half of the sites are located on the city’s Westside and one is in the San Fernando Valley.

While City Hall routinely sells surplus goods, the mayor’s real estate proposal marks a new approach to aiding the 25,000 homeless living in the Los Angeles region. At least $47 million would be raised for affordable housing with the plan, Garcetti’s office said.

At a press conference, the mayor suggested the city might even get more money from the real estate.

“This is real,” Garcetti said. “We’ve talked to council members. They’re supportive in their own districts. And we know this will move forward this year.”

Amid a 12 percent rise in homelessness since 2013, City Hall leaders have stepped up their commitment to offering housing and services. Garcetti and several Los Angeles City Council members pledged at least $100 million towards homelessness at a press conference last fall, but provided few details on where the money would come from.

Garcetti’s 2016-2017 spending plan marks one of the first major detailed proposals since that press conference. The budget allocates $50 million towards the Los Angeles Homeless Services Authority, which provides homeless services, and another $18 million towards homelessness through various department funds.

Garcetti also wants to raise $20 million by imposing a “linkage fee” on developments, a proposal opposed by the construction industry. Cities such as Boston and San Francisco also charge developers such fees, considered a charge for building new projects.

Tim Piasky, CEO of the local chapter of the Building Industry Association, said in an interview Wednesday that the linkage fee would raise the price of housing as builders pass on fees to consumers.

“It’s just another layer of costs,” Piasky said.

The City Council’s Budget and Finance Committee is expected to begin reviewing Garcetti’s budget and making changes in the coming months. Both the linkage fee and the real estate plan require City Council approval.

The real estate plan is likely to be the most scrutinized. The sites could be sold at market rate or leased to affordable housing developers. City Hall also frequently leases city properties to nonprofits for $1 a year, and a similar deal could be reached with housing developers for the sites.

Several developers praised Garcetti’s plan on Wednesday but said his proposal only makes sense if the city land is free or leased at a deep discount.

It costs about $400,000 to build a unit for a homeless person, a price that includes the cost of land, affordable housing developers say.

Jeremy Sidell, chief development officer and communications director at Los Angeles-based PATH Partners, an affordable housing developer and services provider, said finding affordable land in Los Angeles is a major problem.

“Any innovative way to address homelessness here in Los Angeles, where there’s a lack of affordable housing, is a step in a right direction,” Sidell said.

“This is a big deal, as affordable developers finding land is one of the hardest pieces of our jobs,” said Monica Mejia, deputy director of housing development at LINC Housing, a nonprofit affordable housing developer in Southern California.

The mayor’s 2016-2017 budget also funds 100 new positions in the Los Angeles Fire Department, which hasn’t seen money for new hires in several years.

To address a recent crime spike in Los Angeles, police officers will be moved off desk jobs to increase patrols. Garcetti told reporters.

Violent crime alone was up 20 percent last year, while the number of property crimes was up 10.7 percent, according to police statistics. The upticks followed a decade of declining crime in Los Angeles.

LINC Housing Starts Construction on New Affordable Housing Community

MULTIFAMILYBIZ.COM

Pomona, California
May 19, 2016

LONG BEACH, CA – LINC Housing continues to expand its portfolio of affordable housing as construction begins on Mosaic Gardens at Pomona. The new 46-home apartment complex is expected to welcome its first residents in late 2017.

Located at 1680 S. Garey Ave. in Pomona, Calif., Mosaic Gardens at Pomona will feature one-, two- and three-bedroom homes for low-income families, with half of the apartments designated for formerly homeless households who are being served by the Los Angeles County Department of Health Services.

“Mosaic Gardens at Pomona is part of LINC’s initiative to integrate affordable housing with health resources and other services,” said Rebecca Clark, LINC Housing’s president and CEO. “We know that combining housing with health services increases positive outcomes for residents and strengthens neighborhoods overall. Even months before construction began, we were meeting with local service agencies, city officials and other advocates so we’re sure to develop the best set of services possible.”

During predevelopment of Mosaic Gardens at Pomona, LINC Housing sought input from local government officials, city staff, and community advocates. In addition, LINC staff participated in meetings of the Pomona Continuum of Care Coalition, a group focused on working together to address issues surrounding homelessness. The Coalition includes more than 40 agencies including service providers, advocates, faith-based organizations, local government representatives, and county departments, as well as, homeless and formerly homeless people and concerned citizens.

A variety of resident services will be offered through LINC Cares, LINC’s resident services department, and Ocean Park Community Center (OPCC), which has a contract with the county to provide intensive case management services to the 23 formerly homeless households that will call Mosaic Gardens at Pomona their home.

Funding for the $19.7-million development comes from a number of sources including the Los Angeles County Affordable Housing Funds, a construction to permanent loan from Citi, a Citi subordinate loan, and tax credit equity from Raymond James Tax Credit Funds Inc. The 23 homeless units, which include one, two, and three bedrooms, will receive rental subsidies from the Los Angeles County Department of Health Services as administered by Brilliant Corners. Funding for predevelopment of the site was made possible by generous support from The California Endowment, the JPMorgan Chase Foundation, and Partners in Progress.

Residents of the new apartment community will benefit from convenient parking, a community room, and a spacious courtyard with tot lot. The courtyard will be on a deck above subterranean parking and will serve as a gathering space for families to talk, children to play, and all residents to get to know each other. The community room will include a large living room-type area, computers for resident use, and ample space for resident services programs and events. Three offices in the community building will provide space for private meetings with case managers, therapists or other visiting service providers.

The new complex will have a number of sustainability features including 35 kW of solar photovoltaic to offset common and resident use, high-efficiency mechanical systems, and a foam roof for added insulation. The building also has high-performance windows and building envelope, and both the HVAC and water heating systems are very high efficiency. Other environmental features include low-flow plumbing fixtures, LED lighting, drought tolerant landscape, on-site recapture of rainwater, permeable paving surfaces, and healthy building materials throughout. Southern California Edison provided support for the project’s energy efficiency features through its Emerging Technologies program. Mosaic Gardens at Pomona has been registered with the U.S. Green Building Council and intends to pursue a LEED Platinum certification.

The community was designed by D33 Design and Planning, and the contractor is Walton Construction Services.

MultifamilyBiz.com

Non-Profit Developer Starts Construction on Affordable Homes

CONSTRUCTION EQUIPMENT

May 19, 2016

New housing community designed with energy and human sustainability in mind

Construction for a new 46-home apartment complex in Pomona, California has started and when the first residents move in late 2017, they’ll find more than just a roof over their heads.

LINC Housing, a nonprofit developer in California, has built more than 7,500 homes in 73 communities with the intention of combining environmental sustainability technology with human services that help residents ‘sustain’ positive living. Their newest project is Mosaic Gardens on Garey Avenue in Pomona, California.

The new complex will have a number of sustainability features including 35 kW of solar photovoltaic to offset common and resident use, high-efficiency mechanical systems, and a foam roof for added insulation. The building also has high-performance windows and building envelope, and both the HVAC and water heating systems are very high efficiency. Other environmental features include low-flow plumbing fixtures, LED lighting, drought tolerant landscape, on-site recapture of rainwater, permeable paving surfaces, and healthy building materials throughout. Southern California Edison provided support for the project’s energy efficiency features through its Emerging Technologies program. Mosaic Gardens at Pomona has been registered with the U.S. Green Building Council and intends to pursue a LEED Platinum certification.

Funding for the $19.7-million development comes from a number of sources including the Los Angeles County Affordable Housing Funds, a construction to permanent loan from Citi, a Citi subordinate loan, and tax credit equity from Raymond James Tax Credit Funds Inc. The 23 homeless units, which include one, two, and three bedrooms, will receive rental subsidies from the Los Angeles County Department of Health Services as administered by Brilliant Corners. Funding for predevelopment of the site was made possible by generous support from The California Endowment, the JPMorgan Chase Foundation, and Partners in Progress.

Mosaic Gardens will feature 46 one-, two- and three-bedroom homes for low-income families, with half of the apartments designated for formerly homeless households who are being served by the Los Angeles County Department of Health Services.

“Mosaic Gardens at Pomona is part of LINC’s initiative to integrate affordable housing with health resources and other services,” said Rebecca Clark, LINC Housing’s president and CEO. “We know that combining housing with health services increases positive outcomes for residents and strengthens neighborhoods overall. Even months before construction began, we were meeting with local service agencies, city officials and other advocates so we’re sure to develop the best set of services possible.”

During predevelopment of Mosaic Gardens at Pomona, LINC Housing sought input from local government officials, city staff, and community advocates. In addition, LINC staff participated in meetings of the Pomona Continuum of Care Coalition, a group focused on working together to address issues surrounding homelessness. The Coalition includes more than 40 agencies including service providers, advocates, faith-based organizations, local government representatives, and county departments, as well as, homeless and formerly homeless people and concerned citizens.

A variety of resident services will be offered through LINC Cares, LINC’s resident services department, and Ocean Park Community Center (OPCC), which has a contract with the county to provide intensive case management services to the 23 formerly homeless households that will call Mosaic Gardens at Pomona their home.

Residents of the new apartment community will benefit from convenient parking, a community room, and a spacious courtyard with tot lot. The courtyard will be on a deck above subterranean parking and will serve as a gathering space for families to talk, children to play, and all residents to get to know each other. The community room will include a large living room-type area, computers for resident use, and ample space for resident services programs and events. Three offices in the community building will provide space for private meetings with case managers, therapists or other visiting service providers.

The community was designed by D33 Design and Planning, and the contractor is Walton Construction Services.

Developer chosen for Fifth and Sonora housing project

GLENDALE NEWS-PRESS

By Arin Mikailian, Contact Reporter
August 11, 2016

The Housing Authority selected a developer on Tuesday to design what could end up being a 65-unit, affordable-housing project for seniors in northwest Glendale.

With a 3-2 vote, the agency granted LINC Housing/CORE a one-year negotiating agreement to plan the project before it comes back for a final vote.

Mayor Paula Devine and authority member Joseph Kelley cast the dissenting votes.

The effort to build senior housing started years ago when the city purchased a 1.56-acre lot at Fifth Street and Sonora Avenue for $6 million with the hopes that a developer would step in and pay for construction costs through government tax credits.

To that end, Zareh Sinanyan, chair of the Housing Authority, said LINC Housing/CORE has had the most success in winning federal subsidies when compared to the other companies vying with their own proposals.

In the past eight years, LINC Housing/CORE have been awarded 16 out of 19 tax-credit projects, while Thomas Safran and Associates have won nine out of 10 submittals on the first application round.

Authority members have stressed in recent weeks the importance of the ability to win competitive tax credits when being considered for the project.

“The volume of success was larger than that of Safran and, since my colleagues made such a big deal about this, I think it should be taken into consideration,” Sinanyan said.

Devine listed many reasons why she would have preferred to go with Thomas Safran Associates’ 70-unit proposal, which would have cost less per unit by almost $20,000.

She also thought Safran’s proposal was the most compatible with the neighborhood because it offered an inter-generational public park for the elderly and their grandchildren as well as a community room.

“It offers so much open space, which includes more than 6,000 square feet of actual park space where seniors can socialize and share activities … It’s a great project,” Devine said. “It’s thoughtful, it’s functional and I think it has the best chance of getting the financial success that we’re looking for.”

The mayor also pointed to Thomas Safran Associates’ track record of already building two affordable-housing projects in Glendale.

However, Sinanyan said it wouldn’t be a good idea to give that much weight to past relationships.

“If we make that a deciding factor, then we’re excluding new applications or a new entity that hasn’t done business in Glendale … We have to always be open-minded about that,” he said.

Councilman Vartan Gharpetian said the numbers that stood out to him the most was how big of a potential tenant pool the senior affordable-housing project could have.

LINC Housing/CORE’s units would be available to an average low-income tenant who earns 78% less than the area median income, according to a city staff report.

Thomas Safran and Associates’ units would have been 51% below the area median income, the report states.

LINC Housing/CORE’s project would be in a Spanish Colonial style and be three stories high at its tallest point. It would feature a paseo, which would cut through the property that would be open to the public. It will also include a 3,500-square-foot community room and a community garden.

Glendale News-Press

BBVA COMPASS & LINC Housing Charity Event, Los Angeles

TV GUIDE MAGAZINE

Published October 2016

On September 16, TV Guide Magazine and BBVA Compass Bank joined forces for a coffee break and pop-up concert with Tyler Dial and Trevor Seybold (right) to celebrate workers and donate to the LINC Housing site at Willowbrook for low-income families. Bottom: TVGM President Paul Turcotte, President and CEO of LINC Housing Rebecca Clark, BBVA Compass Chief Marketing and Digital Sales Officer Jennifer Dominiquini and BBVA Compass Market President for Greater Los Angeles and Orange County Everett Orrick.

Developers Talk Affordable Housing Challenges

LONG BEACH BUSINESS JOURNAL

by Brandon Richardson, Staff Writer
October 24, 2016

Mayor Robert Garcia hosted a roundtable with housing developers, the last of a series of three community meetings looking at affordable housing in Long Beach, at the Michelle Obama Neighborhood Library on October 14.

In one of the library’s community rooms, the roundtable was open to the public and was attended by more than 50 housing advocates and residents, some of which had to stand due to a lack of available chairs and space. Eleven developers were seated at a horseshoe of tables along with Garcia and former assemblymember and councilmember Bonnie Lowenthal, who has been an active participant in the affordable housing discussions as part of the Affordable and Workforce Housing Study Group.

Elaine Hutchison of Better Housing For Long Beach speaks to Mayor Robert Garcia, former assemblymember Bonnie Lowenthal and 11 housing developers during the public comments section of the mayor’s affordable housing roundtable on October 14. This meeting was the last in a series of three community meetings to discuss the affordable housing crisis in Long Beach. The next step is to prepare a set of recommendations to go before the city council. No timetable has been determined as to when that will occur. (Photographs by the Business Journal’s Larry Duncan)

“I really appreciate this opportunity to not only be here today but the opportunity to have a communitywide discussion about housing affordability. This, I believe, is a first for our city,” Lowenthal said. “It’s very public. And you can tell by the number of people here that it’s well received in the community.”

Garcia opened the discussion by asking about barriers that developers face when working on a housing project. Challenges that the group unanimously agreed on were finding available land, attaining funding sources and undergoing the long-drawn-out permitting and entitlement processes.

Another challenge brought up was a need for time to involve the community in the planning process, which can be as beneficial to a developer as getting land at a reduced price, according to Suny Lay Chang, executive vice president of the nonprofit LINC Housing.

Developers said they also need leadership from the city when working on housing projects. They explained that if they have direction from the city and the community as a whole as to what projects are needed and where, their jobs become much easier. According to Kasey Burke, president of META Housing Corporation, if local governments could align with and have a better connection to the state with regard to incentives, tax credits and other development programs, it would alleviate some of the financial burden of developing affordable housing brought on by countless rules, regulations and high cost.

The next topic of discussion was whether or not developers thought it was more beneficial to build projects for people of mixed incomes. Daryl Carter, chief executive officer of Avanath Capital, and Jonathan Newsome of the Long Beach Affordable Housing Coalition, both agreed that a diversity of incomes have lead to stronger communities in their experience.

However, Pat Patterson, a representative of Ledcor Properties, pointed out that while “everybody would love integrated developments,” the government assistance in creating such projects is a long, competitive and an administratively burdensome process.

One of the most controversial topics of the day was parking. Always a hot topic with Long Beach residents, Garcia pointed out that building parking is expensive for developers and noted that some cities in the state have begun lowering parking requirements. He also said he has read that some communities eliminated parking requirements for affordable housing entirely. He added that he was not advocating this in Long Beach, but rather that he found it interesting.

“Parking is very expensive, especially in high-density developments where you have to do underground parking. It could run $50,000 or $60,000 per stall to build parking,” Patterson said. “[But] this is California still. And people love their cars. And people still drive. So you may find that you have an unsuccessful project because you have taken advantage of the ability to deliver less parking.”

Others echoed Patterson in saying that parking depends on the project and the community’s demand. For example, senior housing is likely to need less parking than multifamily housing.

Robin Hughes, president of the nonprofit Abode Communities, explained that for every parking space a developer doesn’t have to build, another unit could be built in its place. She explained this is a constant tradeoff that needs to be taken into consideration when developing housing in dense areas with a high demand for affordable units, and that alternatives such as bike space, shared car space and even working with public transit for resident discounts are options that should be taken seriously.

Other thoughts to alleviate parking were to open city- and state-owned parking garages to residents for overnight parking or merging commercial and housing spaces, which would allow for business parking during the day and residential parking overnight.

Tyson Sayles, a principal with Ensemble Properties, deemed Long Beach’s minimum unit size of around 500 to 600 square feet another challenge for affordable housing. Sayles said he is a believer in micro-units in densely populated areas as long as they are located in close proximity to transit and walking distant to other amenities such as parks, restaurants and entertainment.

Garcia elaborated on the idea of micro-units for residents in the audience who were not familiar with the idea. When he mentioned the size of about 300 to 350 square feet, it sparked a lot of wide-eyed gasps and chatter from the crowd.

While some of the developers agreed there is demand for housing of all sizes and configurations, including micro-units for young, single people, Carter and Newsome pointed out that their experience with affordable housing shows demand is highest for two- and three-bedroom units. They attribute this to families being the group that most needs affordable housing, especially low-income families that might have several generations living under one roof.

After the developers spoke on these topics, the public was invited to comment, and they seemed just as divided on the idea of micro-units. One speaker said he imagined chickens in tiny coops when he thought of micro-units and thinks this living arrangement could have a negative effect on a resident’s mental health. Another speaker cited statistics of the more than 700 homeless students who attend Long Beach City College and how affordable micro-units could be the answer to putting a roof over their heads.

Elizabeth Torres, a Wilson High School senior, spoke about growing up in poverty and demonstrated the demand for units with multiple bedrooms. She told the mayor and developers that she will be the first high school graduate in her family and hopes to be the first college entrant. Through tears, she said she recently received news that most of her family was going to be moving to Bakersfield because rent for a three-bedroom apartment in Long Beach is “too damn high.”

“There are no doubt many pieces to the puzzle of providing sufficient affordable housing,” Elaine Hutchison of Better Housing for Long Beach said. “The mayor’s initiative to address the closing opportunity gap in Long Beach is a big step in the future of Long Beach. We appreciate this very much because there are a number of factors to be considered. Providing affordable housing should be at all levels.”

According to Garcia, there is no timeline as to when the study group and city staff will make recommendations to the city council regarding the affordable housing crisis in the city. He added that when recommendations are made, the decision on what measures to take, if any, will be made by the council.

County will finance five new affordable housing projects, bringing 304 units to South LA

CURBED LA

by Elijah Chiland
Feb. 15, 2017

The units will house homeless residents and tenants with special needs or disabilities

The Los Angeles County Board of Supervisors on Tuesday set aside more than $37 million to fund construction of affordable housing, including over $18 million in loans to developers of five individual projects in the South Los Angeles area.

Supervisor Mark Ridley-Thomas, whose district encompasses all five project sites, emphasized that the money is merely a drop in the bucket.

“This is tremendous, but it is simply not enough,” he said in a statement. “We can’t just focus on bricks and sticks. We need to make sure that there is that ongoing funding for supportive services, if we really want to ensure that those that are living in affordable housing can thrive.”

Cumulatively the five projects will include 304 units of housing for homeless residents and tenants with special needs or disabilities. The largest of the developments, planned by AMCAL Multi-Housing and called the Florence Library Apartments, will bring 117 units to the unincorporated community of Florence-Firestone.

Another major project, developed by the Hollywood Community Housing Corporation, will include 85 units in two buildings just west of the Martin Luther King Jr. Memorial Hospital. Forty of those units will be reserved for low-income families, while another 43 will serve people who require frequent healthcare services or who are being discharged from the hospital without a home to return to.

Both of those projects, along with a smaller development by LINC Housing Corp. at 6218 Compton Avenue, will receive $5 million in loans from the county.

Additionally, the Board of Supervisors consolidated over $19 million into the 2016-2017 budget to fund other affordable housing projects on an “as-needed” basis. County staff is currently reviewing eight additional projects that could be funded at a later date.

The funding comes as both the city and county of Los Angeles struggle to address rising levels of homelessness across the region.

In November, city voters signed off on a property tax that will help fund up to 10,000 units of affordable housing. Now, the county is asking voters to approve a quarter-cent sales tax bump to really put a dent in the problem.

Affordable Housing Complex Provides Homes for 31 Families in Need in Willowbrook

ABC7-KABC

by Laura Calugar
April, 26, 2017

Willowbrook, CA – Apr 20, 2017 — What once was an abandoned nearly 2-acre lot has become an affordable housing complex in South Los Angeles.

“Today we are having the grand opening for our project, Mosaic Gardens at Willowbrook. It’s 61 units of affordable housing, half of those units will be for the homeless, or formerly homeless,” said Suny Lay Chang with Linc Housing.
Now, 31 families have a place to call their own. Some of the amenities in the two-story complex include a playground, garden and resident lounge.

Latonya Marlow received her apartment keys earlier this month and said it has been a while since she’s felt so blessed.
“I’m overjoyed that now this and then I don’t have to share a room with kids anymore now. They have their own room,” she said.

The latest homeless count shows there are nearly 47,000 homeless in Los Angeles County. Supervisor Mark Ridley-Thomas said that housing is a fundamental right.

On Thursday, Los Angeles Mayor Eric Garcetti said the City Council dedicated more than $176 million to house the homeless and provide them with services to stay safe.

Garcetti also urged the council to pass the Affordable Housing Linkage Fee, which he said would generate $100 million a year for affordable housing. Ridley-Thomas said there will be more projects like the complex in South L.A., including some in the Westlake district and Pomona.

Linc Opens LA-Area Affordable Community

MULTI-HOUSING NEWS

by Laura Calugar
April, 26, 2017

Mosaic Gardens at Willowbrook is a $20 million development built for low-income families and homeless households, with support from several public and private entities. The latest homeless count shows there are nearly 47,000 homeless in Los Angeles County.
LINC Housing Corp. has announced the completion and opening of Mosaic Gardens at Willowbrook, a 61-unit affordable housing community for low-income families and formerly homeless households in the unincorporated area of Willowbrook, Calif. Built on an abandoned 2-acre lot, donated in part by the Los Angeles County, the two buildings are on track to be LEED certified to the Platinum level.

Located at 2213 El Segundo Blvd. in the County of Los Angeles, the community is within half a mile of Anderson Elementary School, as well as public transportation, shopping centers, pharmacies and other service opportunities. The property is also close to the Martin Luther King Jr. Community Hospital and the Willowbrook/Rosa Parks Metro Station. According to Yardi Matrix data, Mosaic Gardens features 37 one-, 11 two- and 13 three-bedroom units. Half of the apartments are reserved for households that are homeless and frequent users of the Department of Health Services. Special needs units are restricted to households earning 30 percent of the area median income or less. The other homes are for families earning up to 60 percent of the area median income for Los Angeles County.

“We’ve worked side-by-side with county leaders, our partners and this community to bring solutions that will improve people’s lives and transform the neighborhood. Now that construction is complete, we’ll shift our focus to providing expansive services including programs that will focus on housing stability, personal empowerment and community building,” said LINC President & CEO Rebecca Clark, in a prepared statement.

Mosaic Gardens at Willowbrook includes a playground, a community room, laundry facilities, 85 parking spaces, a computer lab and a fitness room. The two buildings are interconnected by open space to encourage walking and socialization. Community gardens are available for families to grow their own food. The property includes LEED and ENERGY STAR features such as energy-efficient light fixtures, drought tolerant plants and high-efficiency irrigation.

Construction of the property began in December 2015. Studio One Eleven, Withee Malcolm Architects and Walton Construction were also involved in the project. The Community Development Commission provided construction and permanent financing of $3.3 million in HOME Investment Partnerships funds, more than $2 million in County General Funds, and $840,000 in Homeless Bonus Funds as well as $100,000 energy efficiency and $35,000 gym incentives.

2017 Hanley Award Winners Announced

BUILDER ONLINE

by Jennifer Goodman
Sept. 18, 2017

The Hanley Foundation and Hanley Wood has announced the two recipients of the 2017 Hanley Awards, the largest and most prestigious annual awards for sustainability in the built environment.

William McDonough, FAIA, Int. FRIBA, founding principal of William McDonough + Partners and co-creator of the renowned Cradle to Cradle Design Framework, has been selected as the eighth recipient of the Hanley Award for Vision and Leadership in Sustainability. LINC Housing, headquartered in Long Beach, Calif., will receive the fourth annual Hanley Award for Community Service in Sustainability.

Now celebrating its eighth year, The Hanley Awards are sponsored by The Hanley Foundation and supported by Hanley Wood’s BUILDER and ARCHITECT publications and EcoBuilding Pulse. McDonough will receive a $50,000 prize and LINC Housing a $25,000 grant.

“William McDonough has not only created the language we use when we talk about sustainability, he is single handedly responsible for setting the modern green building movement in motion – from designing the first “green office” for the Environmental Defense Fund, serving as the Dean of the School of Architecture at the University of Virginia, establishing the Cradle to Cradle Certified Products Program, and most recently, helping the World Economic Forum make sustainability a primary focus for their agenda,” says Michael J. Hanley, president of the Hanley Foundation. “Bill is a towering figure in the world of sustainable building practices and we are delighted to present to him this year’s Hanley Award.”

LINC Housing is one of California’s most productive nonprofit developers of affordable housing, grounded in the realization that with the escalating price of land, certain segments of the population would be left behind with no hope to own or even rent a place to live: retired teachers and service sector personnel and young working families in both California’s urban and rural economies. The organization’s properties are known for excellent design, outstanding management and life-enhancing services for its residents. Since 1984, LINC has helped create more than 7,800 homes in 76 communities throughout the state.

Hanley said he has long admired the work of LINC and its leadership’s commitment to providing sustainable yet affordable housing throughout California for people who are integral to communities—public employees, service sector employees, first responders, seniors, individuals with special needs, and the unemployed due to circumstances beyond their control.

“If we cannot provide well located, affordable and sustainable housing to the people who serve our communities, our communities can’t thrive and we are all negatively impacted,” he says. “LINC Housing is an astounding example of an organization committed to providing vital housing and related services to those who need it most and we are pleased to honor their work with The Hanley Award for Community Service in Sustainability.”

The Hanley Award judges this year were Michael J. Hanley, President of the Hanley Foundation and creator of The Hanley Award; Frank Anton, Vice Chairman Emeritus of Hanley Wood; Rick Fedrizzi, Chairman of The International WELL Building Institute; John McManus, VP and Editorial Director of Hanley Wood Media; and Katie Weeks, Director of Communications at the Institute for Market Transformation. The Hanley Awards will be presented at the Hanley Award Reception and Gala Dinner on Wednesday, Dec. 6 during the Housing Innovation, Vision and Economics (HIVE) conference in Los Angeles.

Non-Profit Developer Starts Construction on Affordable Homes

LONG BEACH BUSINESS JOURNAL

by Brandon Richardson, Staff Writer
November 7, 2016

With a growing population of around 474,000 people and increasing rents, the need for affordable housing continues to escalate, while city leaders and community members work together to figure out how to tackle the issue.
“The average rent is right around $1,490 in L.A. County and Long Beach and metro areas. These are from national databases that we look at, and that’s a two-bedroom cost,” Suny Lay Chang, executive vice president of Long Beach-based LINC Housing, a nonprofit affordable housing developer, said. “And then if you look at how many units are available, there’s a historically low vacancy in the city. So it’s really an owner’s market, if you will. It’s very hard for people to find available units.”

Suny Lay Chang, executive vice president of Long Beach-based LINC Housing, a nonprofit affordable housing developer, is pictured with the company’s only Long Beach project at the historic Palace Hotel on Anaheim Street. According to California Homeless Youth Project, one in four emancipated youth are homeless. The units are studio apartments and include the basic amenities necessary for everyday life. (Photographs by the Business Journal’s Larry Duncan)

Despite Long Beach having 4,610 units of federally assisted, affordable rental units – 1,848 Section 8 units, 2,082 Low-Income Housing Tax Credit units, 573 Section 202 units, 55 Section 811 units and 52 public housing units – according to affordablehousingonline.com, Chang said Long Beach currently has 490 individuals approved for housing vouchers who are unable to find an available unit. She explained that spending 30% or less of a person’s income on housing constitutes affordable housing, but many people are paying upward of 50% of their income. She also noted that housing is the number one driver of poverty.

When it comes to building affordable housing, Chang said the single greatest challenge a developer must overcome is acquiring a site to build on. Southern California land is very expensive, Chang explained, and when competing with market-rate developers for a property, affordable housing often loses.

Though Chang said an affordable housing developer often pays the same price for property, gathering funding from various government sites often leads to a longer escrow than a market-rate developer, which many sellers do not want to wait for.

“We put together funding from the city, from the county, from the state, from federal sources. So our development process can take a bit longer than a market-rate developer who’s coming in with an investor who has equity and a lender,” Chang said. She explained that an affordable housing developer’s only option is to find private sellers or public agencies that are willing to engage in a longer escrow process.

The 14-unit project is meant to house emancipated youth and includes common areas for socializing and hanging out. (Photographs by the Business Journal’s Larry Duncan)

Another major challenge when attempting to develop affordable housing in densely populated areas such as Long Beach is parking. “It’s always been a challenge because we love our cars,” Chang said. “Parking also has the ability to really constrain the number of units that you build because they don’t generate additional revenue. And a lot of times when you run the calculations on a site, that is the limiting factor.”

Essentially, the more parking a project is required to have, the fewer units it is likely to have, according to Chang. She explained that this is not just because of space but also the high cost of providing parking, especially in densely populated areas that require subterranean parking. Chang argues that for certain types of housing, like for seniors or very low-income families, parking is not as important as for market-rate projects because many tenants do not own cars.

“When you’re struggling to make ends meets, the gas payments, the insurance payments and the car payments can add up,” Chang said. “So the people who are living in affordable housing with access to transit, it’s been demonstrated that they actually are more willing and more likely to use the transit.”

In light of this, Chang said there has been action taken by policymakers to ease parking requirements for certain developments. Assembly Bill 744, for example, which was approved in October 2015, reduces the parking requirement for affordable housing in California to 0.5 spaces per bedroom if the project is located within half a mile of a major transit stop. Though Chang admitted that LINC tries to stay above the minimum to accommodate families that still need their cars, she said actions such as this enable affordable housing developers to maximize the number of units, which is necessary to aid low- to very low-income families.

When talking about the overall construction process and the finished product, Chang explained that it is not uncommon for affordable housing to actually look nicer than market-rate projects. She said this is because developers are trying to overcome the idea that affordable housing is cheap and held to a lesser standard than market-rate housing.

“I wouldn’t say that we go all out the way that a luxury apartment owner might go all out, but I wouldn’t describe it as bare bones,” Chang said. “Almost all of our projects have community rooms and amenities such as tot lots and computer centers. We . . . help provide life-enriching services, whether it’s after-school programs, job readiness, or health and wellbeing and nutrition programs – we do all of that. Several of our properties have pools. They have gyms. It’s really making sure that everybody is living in a place that everybody would be happy to call home.”

Despite the hurdles in creating affordable housing, Chang commended Long Beach officials for focusing on the affordable housing crisis. In September, Mayor Robert Garcia formed the Affordable and Workforce Housing Study Group and hosted three community meetings through October to gather community input. Chang said even the recent homelessness study was valuable to the affordable housing conversation.

The units are studio apartments and include the basic amenities necessary for everyday life. (Photographs by the Business Journal’s Larry Duncan)

LINC Housing’s only current project in Long Beach consists of 14 studio units at the site of the historic Palace Hotel on Anaheim Street. This project was created for the sole purpose of housing emancipated youths, due to the extreme rate of homelessness among that demographic. According to the California Homeless Youth Project, one in four emancipated youths are homeless.

Another project has been proposed by LINC on a city-owned site at 19th Street and Long Beach Boulevard, which is still being evaluated. Chang said the company is continuing to look at sites throughout the city for possible affordable housing developments.

To help the process of creating affordable housing, Chang said all government agencies, not just Long Beach, must do everything they can to expedite the planning and entitlement processes, as well as allow for more density and continue to prioritize affordable housing.

Chang explained that affordable housing conversations encompass much more than just putting a roof over people’s heads. She said a stable family home is most important because it is a safe and consistent environment for children to grow up healthy and succeed in school. A home that offers services and allows families the ability to work less and spend more time together is an opportunity everyone should enjoy.

“I love that we are talking about affordable housing because it is really important and really critical,” Chang said. “For LINC Housing, and for those of us that live and breathe not just the housing but the community development piece of it, it’s just the beginning of getting that flywheel of opportunity and economic growth to happen.”

2017 Hanley Award Winner: LINC Housing

BUILDER ONLINE

LINC Housing earns Hanley Award for Community Service in Sustainability

by Christine Serlin
Dec. 5, 2017

For over three decades, LINC Housing Corp. has lived up to its name. LINC, an acronym for limited-income communities, has provided housing and services for Southern California residents not able to afford to own or rent homes in the notoriously expensive housing market.

The Long Beach, Calif.-based nonprofit got its start in 1984, when regional government stakeholders realized escalating land costs were pricing out retired teachers, young working families, and service-sector personnel. To address this affordability crisis, the Southern California Association of Governments formed a nonprofit named Corporate Fund for Housing. After gaining experience and relationships from its early developments, it expanded its mission, staff, and service area and became LINC Housing.

The cost of housing has escalated in California as well as the rest of the nation, with more than one in four renter households spending over half of their income on rent. While LINC’s mission hasn’t changed, it has broadened to provide a continuum of housing needs.

“What’s happened over time is the crisis is affecting a much wider band of the income spectrum,” says LINC president and CEO Rebecca Clark. “You have many who really are the hardest to serve and have the greatest needs. We’re working to serve that lowest-income population, some with no income, as well as recognizing that there are people in the retail industry, teachers just starting out, or service professionals that don’t make enough to truly afford a market-rate unit.”

To date, the nonprofit has helped to create more than 7,800 homes in 76 communities, including what’s currently under construction. These developments are providing homes for working families, seniors, veterans, formerly homeless, developmentally disabled, and young adults aging out of the foster-care system.

For its innovative work, LINC has earned the 2017 Hanley Award for Community Service in Sustainability from The Hanley Foundation and Hanley Wood, publisher of BUILDER. The award, with its $25,000 grant, recognizes community-based and nonprofit organizations working to advance sustainability and environmental awareness. The nonprofit will be honored at a reception and gala in Los Angeles this month.

“If we cannot provide well-located, affordable, and sustainable housing to the people who serve our communities, our communities can’t thrive and we are all negatively impacted,” says Michael J. Hanley, president of the Hanley Foundation. “LINC Housing is an astounding example of an organization committed to providing vital housing and related services to those who need it most.”

Scaling Sustainability
In addition to providing housing for limited-income individuals and families, LINC has long been committed to making its homes sustainable and healthy for residents.

Former LINC CEO Hunter Johnson, who retired in 2014, was instrumental in holding the nonprofit to higher green standards, striving for new developments to be LEED certified and making older properties in the portfolio more energy efficient.

“We enjoy a very strong partnership with LINC Housing,” says Kevin Kilbane, managing director of West Coast acquisitions for Raymond James Tax Credit Funds, which has completed several deals with LINC. “Its affordable housing communities serve as a catalyst for community improvement by providing safe, high-quality, energy-efficient, and environmentally sustainable housing to a diverse range of residents that includes seniors, families, and homeless/special-needs populations.”

In 2012, LINC formed SEED Partners, a mission-driven energy and water services company that brings sustainability to existing multifamily housing communities. Specializing in sustainable retrofits, SEED Partners has rehabbed 21 of LINC’s properties, resulting in approximately $140,000 per year in savings for owner-paid energy and water costs.

“[Green building] has a quadruple bottom line. It not only works to make buildings more efficient, but also reduces energy costs for residents and creates healthier units, saves money on the operating side, and helps the environment,” says Clark. “Climate change is real, and our resources are scarce and vulnerable. We can’t change it alone, but we have to do our part.”

LINC Cares, the nonprofit’s social services arm, continues to engage clients on sustainability after they move in. This includes providing new residents with sustainability gift bags, an after-school curriculum for children to learn about solar power and recycling, and workshops on energy efficiency and green household tips. “If your residents don’t buy into water and energy conservation, all of the other improvements that we have done aren’t as effective,” says Nina Dooley, a LINC vice president.

Collaborative Approach
One of LINC’s recently completed developments, Mosaic Gardens at Willowbrook in Los Angeles County, showcases the developer’s attributes.

“This project brought LINC together with community partners, county leaders, and other neighborhood nonprofits to figure out how we could work side by side to transform a neighborhood, provide affordable housing, and improve people’s lives,” says Clark, who notes that others had tried to build in this community before but failed to earn the residents’ trust. LINC staff members, according to Clark, sat in people’s living rooms and churches to hear residents’ visions for housing in this area.

Half of the project’s units are for formerly homeless residents; the remaining units serve families earning up to 60% of the area median income.

Located in an unincorporated area in south Los Angeles, the development pays tribute to the area’s agrarian history with a ranch-style feeling and retains a notion of country living in the city. It includes community gardens for residents to grow their own food, a community kitchen, and a tot lot and small field for children to play.

The LEED Platinum development touts energy efficiency and water conservation and incorporates a range of environmentally friendly products such as green-certified flooring; locally produced cement; low-VOC paints, adhesives, and sealants; Energy Star appliances; low-flow toilets, showers, and faucets; drought-tolerant plants; and high-efficiency irrigation.

Expanding Pipeline
As LINC has historically focused on housing and services, it will continue to broaden its mission to focus on the entire community. It has a steady growth of affordable housing development in the pipeline, looking at about 900 units in the next two years. It also is focusing on more mixed-use projects to bring in complementary partners and tenants, such as grocery stores, clinics, and gyms, for a bigger community impact.

“We really recognize that we have to expand,” says Clark. “It’s not just numbers to us, it’s impact. This strategy with relationships goes deep. We can’t be an expert in everything, and we know there are so many great organizations out there in every community to partner with.”

One example of this community development work is The Spark at Midtown in Long Beach. LINC recently won the request for proposal to create 95 housing units for low-income families and the formerly homeless. Its main tenant on the ground floor will be the YMCA. A bike parking and services area also is planned to encourage sustainability and a reduced carbon footprint.

“We’re just notching all of this up,” notes Clark, “and the partnering has resulted in more developments and the ability to create more impact.”

Image via Los Angeles County

Affordable Housing Complex Wrapping Up in Westlake

URBANIZE.LA

by Steven Sharp
Jan. 19, 2018

The project comes from LINC Housing Corporation

LINC Housing Corporation is now wrapping up construction for Mosaic Gardens at Westlake, a new affordable housing complex located near Downtown Los Angeles.

The project, located at the corner of Beverly Boulevard and Lucas Avenue, consists of a six-story structure featuring 125 studio, one-, two- and three-bedroom apartments, priced for households making between 30 and 60 percent of the Los Angeles area median income. Rents will range between $398 and $1,295 per month.

The $57-million project, designed by Lahmon Architects, will incorporate drought-tolerant landscaping, a stormwater management system, and other green features.

Completion is expected in mid-2018.

<br />
Photo by Michael Hayes / Urbanize.LA

Image via Los Angeles County

Photo by Michael Hayes : Urbanize.LA Rendering via Lahmon Architects

100-Unit Affordable Housing Development Planned in Willowbrook

URBANIZE.LA

Board of Supervisors approve funding for new project from LINC Housing Corp.

by Steven Sharp
Jan. 31, 2018

The Los Angeles County Board of Supervisors has approved funding for affordable housing that will facilitate the construction of approximately 100 units of affordable housing in Willowbrook.

According to 2nd District Supervisor Mark Ridley-Thomas, the Board approved $50 million to building affordable apartments for people with mental illnesses through the Mental Health Service Act. The money will go towards 10 developments across Los Angeles County, totaling 667 units.

The Willowbrook project would be built by LINC Housing Corporation, a nonprofit builder with numerous developments throughout Los Angeles County. A rendering portrays a five-story building highlighted by protruding orange balconies.

The County is currently in the midst of currently considering a new specific plan that would govern land use on 312 acres of land surrounding the Metro’s Willowbrook/Rosa Parks Station, one of the busiest on the Metro Rail system. An expansive renovation is also taking shape for the station area, including safety and cosmetic upgrades.

Image via Los Angeles County

Belmont considers affordable housing development

SAN MATEO DAILY JOURNAL

Proposal includes 40 homes for low-income seniors and families

by Zachary Clark, Daily Journal staff
Feb. 13, 2018

The latest in a series of efforts to address the housing crisis, the Belmont City Council will consider Tuesday entering into an exclusive negotiation agreement for an entirely affordable housing development on El Camino Real.

LINC Housing, a Long Beach-based nonprofit, is proposing to develop 40 affordable units on two city-owned sites near the Caltrain station: one at 900 El Camino Real and another comprising 876, 884 and 898 El Camino Real.

The development would consist of 20 one-bedroom units set aside for low-income seniors as well as 10 two-bedroom and 10 three-bedroom units for low-income individuals and families, according to a staff report.

Mayor Doug Kim said this would be Belmont’s first 100-percent affordable housing development.

“About a year ago we took a hard look at what we can do to promote housing in Belmont and what land we own,” Kim said. “These parcels on El Camino jumped out as near-term opportunities for us to move housing forward.”

The project’s main challenge, Kim said, is the small size and narrow shape of the parcels, which are currently home to an abandoned filling station and one-story building. Kim said the council was hoping to receive many bids when it issued a request for proposals in June, but only two developers came forward.

“Some developers were turned away because they didn’t think they could be too creative with the property,” Kim said.

The development would require a variety of funding sources in addition to the city’s contribution of land, including low-income housing tax credits, federal home loans and San Mateo County affordable housing funds, according to a staff report.

Two other projects in the works — a mixed-use proposal at Firehouse Square and another called “Artisan Crossing” at 1325 Old County Road — would also bring affordable homes to Belmont.

City officials have been negotiating with developer Sares Regis Group about the Firehouse Square project. Conceptual drawings for the project include 81 townhomes and single-story flats, 25 percent of which would be sold or rented at affordable rates.

The “Artisan Crossing” project, proposed by Windy Hill Property Ventures in October, includes 175 apartments, 15 percent of which would be below market rate.

The City Council meets 7 p.m. Feb. 13, at City Hall, 1 Twin Pines Lane.

Wide swath of Long Beach people to come together to solve homelessness

PRESS-TELEGRAM

by Louis Casiano | Orange County Register
May 25, 2018

Local business, nonprofit and government leaders will begin a series of meetings next month to discuss ways to help Long Beach’s homeless individuals transition into affordable housing and how to effectively provide much-needed services.

The formation of Everyone Home Long Beach will consist of a 30-member task force comprised mostly of CEOs and presidents from the education, business and social service groups.

Cal State Long Beach President Jane Close Conoley will chair the group, and Andy Kerr, the city’s representative on the Los Angeles County committee that decides how Measure H sales tax proceeds earmarked for homelessness are spent, will serve as the vice chair.

WHAT IT WILL DO
Duties will include reviewing current efforts by the city and advocate groups and creating a strategic plan to help Long Beach’s homeless, expected to be presented to the City Council in the fall, Mayor Robert Garcia said.

The task force will also examine how to help those at-risk of becoming homeless, Garcia said. “While the city is doing some really great work on this topic, it’s clear we need to do more,” he said.

Conoley was not available for comment Thursday.

Other members of the task force include Long Beach Unified Superintendent Chris Steinhauser, Long Beach City College Superintendent Reagan Romali and the CEOs of Long Beach Memorial Medical Center, St. Mary Medical Center and Dignity Health and the leaders of services providers, the Villages at Cabrillo and Goodwill Southern California Los Angeles County.

THE HOMELESS POPULATION BY THE NUMBERS
The 2017 biennial point-in-time count recorded 1,863 homeless people living in Long Beach, a 21 percent reduction from 2015.

The decrease was mostly attributed to the city’s expansion of permanent housing and homeless outreach, Garcia said at the time.

L.A. County’s homeless population has spiked in recent years. The region reported an estimated 55,000 homeless people, according to the Los Angeles Homeless Service Authority.

Voters have responded to calls to do more with a series of measures designed to increase funding for homeless services and housing. The half-cent sales tax — known as Measure H — approved last year is estimated to generate $355 million annually over 10 years to help the homeless transition into affordable housing.

City of Los Angeles’ Measure HHH approved $1.2 billion in bonds to build housing and fund mental health and addiction treatment facilities. To date, no units have been opened.

On Tuesday, a Los Angeles City Council committee approved a Koreatown parking lot as a potential site for a temporary homeless shelter. The council will take up the matter at a future meeting.

EYEING SUCCESS
Christina Miller, president of Long Beach-based Mental Health America of Los Angeles, said the diversity of thought behind the task force is an asset that should yield positive results.

“For me, it’s a great opportunity to work with leaders across a lot of fields to figure out how we can work together to do this,” she said. “When you come together with the main stakeholders and the people who are the ones doing the work in this area … it really sets the process up for success.”

Homelessness used to be concentrated downtown but since has expanded citywide, Kraig Kojian, president of the Long Beach Downtown Alliance, said.

“You can’t take a NIMBY (not in my backyard) attitude with this,” he said. “I think the task force is a testament to it being a citywide issue.”

To be successful, the link between living on the streets and the lack of affordable housing must be addressed as well as finding ways to help those on the cusp of homelessness, said Suny Lay Chang, chief operating officer for LINC Housing, an affordable housing developer.

HOW LONG BEACH STACKS UP AGAINST OTHER CITIES

“Homelessness is not an identity, it’s a condition,” she said. “You could be one personal catastrophe, one medical emergency, one layoff away from a lot of people becoming homeless.”

Long Beach has managed its homeless problem better than most cities of a similar size, Garcia said, citing the lack of large homeless encampments and, in recent years, outreach efforts and the construction of 1,500 affordable homes that house almost 1,000 formerly homeless veterans.

“The best way to address homeless is to make sure people have homes and places to live,” he said. “We see hundreds and hundreds of individuals weekly. … But it takes an average of 15 visits for a person experiencing homeless for them to seek help, so it’s a big challenge.”

The first meeting for Everyone Home Long Beach is scheduled for June 15.

Apartments for homeless veterans set to open in Beaumont in July

RECORD GAZETTE

By Julie Farren
June 22, 2018

The Illinois Avenue apartments for low-income veterans are still available for those seeking three-bedroom accommodations in Beaumont.

Now renamed as Liberty Village at 735 Illinois Avenue, the Beaumont apartments are anticipated to open at the end of June, with move-ins in July, according to Holly Ferris, owner of Ferris Communications.

Applications are being processed daily, said Ferris.

Thirty-eight apartments were built, with 21 for veterans with families and 17 for veterans experiencing homelessness.

As of June 18, there are 11 three-bedroom apartments that are “general affordable” for veterans earning 30 to 60 percent of the area median income.

A grand opening celebration is set for 3:30 p.m. Tuesday, July 24, with Beaumont Mayor Nancy Carroll expected to attend.

The veterans can qualify for the apartments based on their income. Three-bedroom apartments can range from $438 to $941 a month.

The one-bedroom apartments range from $562 to $683 a month.

Amenities include a community room, a courtyard, computer center and laundry facilities.

The apartments are on Illinois Avenue, between Sixth and Eighth streets.

The veterans housing was constructed by LINC Housing in California, which is based in Long Beach.

The Beaumont apartments are LINC’s first project for veterans.

The project cost $16.4 million. The apartments have high-efficiency air conditioning and heating, low-flow plumbing fixtures and high performance windows and features on the wall that flash and alert the hearing-impaired that there is a visitor at the front door.

LINC Cares, a resident services program, will provide on-site support services and case management for the veterans. There will be social and educational programs for all residents.

Information on the apartments is at www.linchousing.org/beaumont. Questions can be directed to: Illinois@jsco.net.

New homeless housing complex a sign of things to come

KCRW

by Frances Anderton
June 27, 2018

Mosaic Gardens at Westlake is located near downtown LA and Historic Filipinotown, across from the Bob Baker Marionette Theater and Vista Hermosa Park. It’s a very hilly site overlooking a large intersection where Beverly becomes First St. and Glendale Boulevard becomes Second St.

LINC Housing, the nonprofit affordable housing developer, is behind the project. It has 125 units for households that have experienced homelessness, low-income families and seniors. And it’s a mix of one-, two- and three-bedroom units.

These units are in high demand. Nearly 1,900 households submitted applications for the initial lottery for the 60 affordable homes for families and seniors earning up to 60 percent of area median income.

Another 63 of the apartments are for formerly homeless households referred by the Los Angeles County Department of Health Services, who will also receive on-site wraparound supportive services.

Mosaic Gardens at Westlake, held a grand opening on June 21. The 125 units will house formerly homeless families, low-income people and seniors. Photo courtesy of LINC Housing.
One of the biggest challenges this project faced was the topography of the site. It’s on a hill with a 40 foot elevation difference from top to bottom. It took ages to get a developer interested and when LINC stepped forward, they had to remove 40 vertical feet of soil from the hillside — “literally moving mountains,” said the chief operating officer of LINC Housing, Suny Lay Chang.

In addition, the 1.19-acre site was covered with rundown structures, broken down cars, trash and overgrowth.

It took City Councilman Mitch O’Farrell’s office cutting red tape to move the project along. It took two years from the start of construction to grand opening, which is remarkably fast for this kind of project.

The project’s construction is a basic concrete, stick and stucco structure. But it’s really quite attractive. It has stepped up terraces, and then rather than one monolithic box it consists of two multi-story buildings around internal courtyards. It has an interesting facade with windows twisted out at the corners, giving dimension to the building, with dashes of bright yellow.

The architect is Mark Lahmon, of his own firm Lahmon Architects. He’s been involved with affordable housing for over 15 years, and so he knows how to add architectural interest that doesn’t drive up the cost.

The folks living there have lots of amenities: laundry facilities, a community garden, computer labs, a commercial-grade kitchen, a crafts room, fitness center, a bike storage room and playground.

“Design is always important to us. We love the way this building looks. We want it to be something that people are proud of living in and that people are proud of having in their community, and also so that the people who live here, it brings them joy. It helps them heal. It’s a place where they’d be proud to call it home,” said LINC’s Suny Lay Chang.

Total cost for the project was $57 million. The money came from multiple sources — between 8 and 12 depending on how you count it — and that includes city, county, state and federal funds, as well as conventional bank loans and some foundation money.

This was greenlit well before LA County voters passed Proposition HHH, but it’s likely we’ll be seeing many more such projects that will be paid for with those new public dollars.

This building was entitled for market rate housing many years ago. Many for-profit developers considered it and passed on it because of the complexities and cost of the hillside site.

The architect responsible for the original design said it took a nonprofit like LINC to be able to source the funds to build it. Because the project was already entitled for multifamily housing the process could move much faster.

All this matters because one of the issues that’s been raised recently is the cost of building permanent support housing. Prop HHH initially promised 10,000 units of housing. That estimate has dropped to 6,000. And there are several contributing factors: cost of land, price of construction materials, compliance with environmental standards and rules requiring union labor.

KCRW’s Saul Gonzalez’s reported this week that for the first supportive housing project funded by Prop HHH, the individual unit cost was over $400,000. Mosaic was less than that, around $300,000 per unit, but still that’s a lot of money.

Housing crisis requires some creative solutions

THE DAILY JOURNAL

By Charles Stone
June 29, 2018

For many years in Belmont, we have tried to develop our last meaningful pieces of property owned by the former redevelopment agency. The properties include parcels located at Hill Street and El Camino Real, and the parcel known as Firehouse Square on Fifth and O’Neill avenues and Broadway. In a thrilling turn of events earlier this year, the city entered an exclusive negotiating agreement with LINC Housing for the development of a project including 100 percent affordable homes at the Hill Street and El Camino Real sites. Just last week, we learned of more exciting news. Sares Regis, which has a development agreement for Firehouse Square spanning several years, is working to form a partnership with MidPen Housing to develop a project featuring over 80 percent affordable units. This is a monumental leap forward for the project; previously, the term sheet included only 25 percent affordable units.

These developments represent a significant increase in affordable homes for our community. This is critical as our cities struggled to keep pace with demand for both affordable and market-rate housing for years.

Recently, the San Mateo County Housing Leadership Council — our local housing advocacy nonprofit — released a report reminding us of the severity of our affordability crisis. The report showed between 2010 and 2015, only one new home was built for every 19 jobs created. According to the same report, to purchase the median priced home in San Mateo County, a household would have to make an astounding $382,960 annually. Rentcafe.com, an online listing service, indicates the average two-bedroom apartment rents for nearly $3,500 locally.

This is not sustainable if we are to maintain a functioning local economy and avoid the displacement of more families — a driving force behind traffic congestion as many of these displaced workers continue commuting to Silicon Valley. Smart growth and innovative transportation solutions must be pursued. We must also work with the private sector to assure projects on private land include some affordable housing. Cities like Belmont, San Mateo, Redwood City and others have adopted inclusionary zoning ordinances ensuring affordable housing will be a part of these developments.

But local governments — the county, cities, school districts and transit agencies �� also need to look to their land as part of the solution, just as we are doing in Belmont. The San Mateo County Community College District led the way locally in this regard. For years, both Cañada College and the College of San Mateo have offered high-quality, affordable homes to their teachers and staff. This helps ensure the district can retain and attract quality employees. As icing on the cake, these developments will eventually provide the district with a small revenue stream.

Last week, we learned the Jefferson Union High School District Board of Trustees — under the excellent leadership of Board President Andy Lie and Vice President Kalimah Saluhuddin — successfully passed the first high school district teacher and staff housing bond. In a few short years, the vision of the board will allow the district to offer something no other high school district in the county can: affordable homes for district teachers and staff. This is a shining example of how government land combined with visionary policymaking can help make inroads in the fight against the housing affordability crisis.

Transit agencies are also embracing this concept. SamTrans land was used for housing with generous affordable housing components in both San Carlos and Daly City. The district continues looking for opportunities to use its land to help build housing. Caltrain has recently moved forward with a transit oriented development policy which will guide the use of its land.

Remaining redevelopment agency land is also a fertile ground for affordable housing. In San Mateo, officials approved a 164-unit Mid-Pen Housing development on former redevelopment land — half of which will be for those earning 60 percent of the area median income and the other half will be for households making 80-120 percent.

In a housing crisis of the magnitude, we must continue to utilize a variety of tools to ensure low- and middle-income earners have an opportunity to live here. One of those tools is the use of public land. I hope we see this trend not only continue — but grow.

Charles Stone serves is a current Belmont councilmember and former Mayor, the Chair of the San Mateo County Transit District, and also serves on the Caltrain Joint Powers Board. The views and opinions expressed herein are his own.

Linc Housing Opens Affordable Housing Community for Veterans

AFFORDABLE HOUSING FINANCE

Beaumont, Calif., development is helping formerly homeless get back on their feet.

By Christine Serlin
Dec. 4, 2018

LINC Housing’s new community in Beaumont, Calif., is prioritizing affordable housing with supportive services for veterans, many of whom had been formerly homeless.

The nonprofit developer’s 38-unit Liberty Village is a vital resource for Riverside County, which has been committed to ending veterans homelessness over the past five years. In 2013, the county launched an initiative to find permanent housing for every homeless veteran. This initiative led to it becoming the nation’s first large county to reach “functional zero,” a federal benchmark for making permanent housing available for homeless veterans who seek assistance.

The development provides 38 one-, two-, and three-bedroom apartments for veterans with disabilities, chronically homeless veterans, and veteran families earning less than 60% of the area median income.

Photo Gary Krueger.
LINC Housing’s Liberty Village in Beaumont, Calif., serves veterans with disabilities, chronically homeless veterans, and veteran families earning less than 60% of the area median income for Riverside County.

To provide for the veterans’ specific needs, LINC Housing’s resident services program, LINC Cares, has partnered with area agencies that serve this population. In addition, the 21 units reserved for veterans who have experienced homelessness receive vouchers from the County of Riverside Housing Authority through the Department of Housing and Urban Development-Veterans Affairs Supportive Housing program as well as additional supportive services and case management through LINC Cares and the VA.

The community also is less than a mile from the local Veterans of Foreign Wars Post 223 and in the service area of both the Loma Linda and San Bernardino VA centers.

“It’s time to make veterans a priority,” said Rebecca Clark, LINC Housing president and CEO. “LINC is proud to join our partners in bringing this village to Beaumont. We’re here to stay as we continue to provide supportive services that we know will help all the new residents build healthy, happy, productive lives.”

Residents started to move into Liberty Village this fall. Pat, a Vietnam veteran who struggled with finding a stable home after his 37-year marriage ended and a workplace accident caused him to lose a job, is just one of the many residents getting the help needed to get back on their feet. “I was really struggling on my own, so I’m grateful to everyone who helped me through the process of getting approved to move into Liberty Village,” he said. “I’m back now. I’m paying my bills, and I’ve got food in the refrigerator. I have a really good apartment. It’s such a relief.”

The community is located near major public bus lines and within walking distance to retail and services. On-site, it features community garden planters, barbecue and picnic areas, a farm-to-table nutrition program, a food pantry, an after-school program, free on-site haircuts from local barbers, and the Liberty Rack, which provides clothing for resident job interviews.
Liberty Village also touts sustainable features, such as high-performance windows and building envelope, highly efficient HVAC and water heating systems, low-flow plumbing fixtures, Energy Star appliances, and smart irrigation controls. In addition, recycled, locally produced, and low-VOC building materials were utilized.

Financing for the $16.4 million development was provided through California Department of Housing and Community Development’s Veterans Housing and Homelessness Prevention Program and the County of Riverside Neighborhood Stabilization Program as well as a construction loan from BBVA Compass and low-income housing tax credit equity from Raymond James Tax Credit Funds.

D33 Design and Planning and Walton Construction Services designed and constructed the building, respectively.

The Spark at Midtown, a 95-unit affordable housing complex, is just the beginning of new development in Central Long Beach

LONG BEACH PRESS-TELEGRAM

By Hayley Munguia
March 20, 2019

Walking around downtown Long Beach, it’s hard to miss the ubiquitous hard hats, cranes and mid-construction skyscrapers. The neighborhood is without question the epicenter of the city’s development boom — but those investments are crawling northward.

Central Long Beach is the latest home of new development. City and county officials broke ground on Wednesday, March 20, on the Spark at Midtown, a new five-story, 95-unit affordable housing complex �� one of 22 new developments in the Central Long Beach area that Mayor Robert Garcia touted in last year’s “Building a Better Long Beach” address.

Seven of the 22 new Central Long Beach projects — including the Spark at Midtown, at 1900 Long Beach Blvd. �� will offer affordable housing for residents who earn a fraction of the area’s median income. Another 10 of the 22 projects will provide housing that’s not designated as affordable.

Official break ground on the new 95-unit Spark at Midtown affordable housing complex in Long Beach on Wednesday, Mar. 20, 2019. The LINC Housing facility at 1900 Long Beach Blvd. is being built for homeless and low-income individuals and families. (Photo by Scott Varley, Daily Breeze/SCNG)

During Wednesday’s groundbreaking, Vice Mayor Dee Andrews and L.A. County Supervisor Janice Hahn addressed Southern California’s housing affordability crisis and lauded the Spark at Midtown as one small way to be part of the solution.

“This is an innovative project that works to address our housing crisis from every angle — lifting individuals out of homelessness, preventing low-income families from falling into homelessness, and providing wrap-around services through the county that keep residents happy, healthy, and housed,” Hahn said. “These are the kinds of developments that help neighborhoods to thrive.”

Long Beach’s Housing and Neighborhood Services Bureau Manager Patrick Ure said the Spark at Midtown is just the beginning. Two more affordable housing groundbreakings — one for Vistas del Puerto at 1836 Locust Ave., and one for Las Ventanas at 1795 Long Beach Blvd. — are scheduled for the coming weeks.

Combined, the three projects will add more than 250 affordable housing units to Central Long Beach, Ure said.

The $52.6 million Spark at Midtown project has been years in the making. During the 2017 meeting where the City Council voted to move ahead with finding grant funds for the Spark, Andrews said he was delighted that he could help provide more affordable housing to his residents in Long Beach’s 6th District.

“I’m very excited for this project and what it will mean to the community,” he said. “You know, housing in this city is a citywide challenge, and we’re in short supply. And what is available isnot affordable, so (the developer) has proposed an innovative development that will serve the community.”

The Spark at Midtown, which will consist of 47 one-bedroom, 24 two-bedroom and 24 three-bedroom units, will devote half of its apartments to families earning up to 60 percent of the area’s median income, and the other half will be reserved for families who have been homeless.

Most residents will pay 30 percent of their income for their apartment. Rents range from $415 to $545 for a one-bedroom unit, $654 to $1,309 for two bedrooms, and $756 to $1,512 for three bedrooms.

Along with the housing units, the building will also include a computer lab, a community garden and private meeting rooms that residents can use to connect with service providers and case managers. The L.A. County Department of Health Services will offer case management, and the developer, LINC Housing, will also provide free after-school and summer programs, as well as classes on health, job skills, financial literacy and more.

The building’s ground floor will house the YMCA’s Long Beach Youth Institute, a St. Mary Medical Center health clinic and a Mental Health America cafe that will provide workforce training.

Construction is scheduled to be completed by late 2020.

Developers to break ground this week on 95-unit affordable housing development

LONG BEACH POST

By Brian Addison
March 19, 2019

One of Long Beach’s least-discussed affordable housing developments—the five-story, 95-unit mixed-use project dubbed The Spark—will officially break ground Wednesday, March 20.

The five-story building will feature 47 one-bedroom, 24 two-bedroom and 24 three-bedroom units; half of those units will be dedicated to families and persons who have experienced homelessness while the other half will be set aside for families earning up to 60 percent of the area’s median income.

Located at 1900 Long Beach Blvd., just north of Pacific Coast Highway, The Spark is one of many transit-oriented housing projects coming online in the city, joining projects like The Beacon, which is currently under construction.

Rendering courtesy of LINC.

More than just a housing complex, The Spark aims to be an epicenter of culture and connection for its tenants. On top of a community room with computer lab, a community garden and bike amenities, it features a partnership between the Los Angeles County Department of Health Services and the developer, LINC Housing.

That link is intended to help those whose experiences of living on the streets remain fresh. The 47 formerly homeless households will have access to intensive case management services with private meeting rooms on the property.

The estimated price of the design collaboration between City Fabrick, D33 Design & Planning, and WHA Architects has gone up to $52.6 million from $41.4 million; $1.62 million of that total came from Supervisor Janice Hahn while another $3 million came from the city’s Long Beach Community Investment Company. It was entitled in October of 2017.

“The SPARK is an exciting project that will not only mean new affordable homes for 95 families, but will be an asset to the entire Midtown Long Beach community,” Los Angeles County Supervisor Janice Hahn said last year when the project received additional funding. “These are the kinds of projects that allow neighborhoods to thrive and we have a great non-profit partner like LINC Housing working to ensure this project succeeds.”

Additionally, The ground floor space will house the YMCA of Greater Long Beach Youth Institute program, the Mental Health America of Los Angeles café for workforce training and a Dignity Health St. Mary Medical Center clinic.

The Spark is due to be completed in late 2020.

Brian Addison is a columnist and editor for the Long Beach Post.

Governor Newsom Proposes $750 Million To Support Affordable Housing

LONG BEACH BUSINESS JOURNAL

By Pierce Nahigyan, Staff Writer
March, 25, 2019

As part of his proposed budget for California, Gov. Gavin Newsom has proposed distributing $750 million to cities and counties to accelerate their production of affordable housing. This figure would be broken into two portions: $250 million to update local zoning codes to more accurately reflect the needs of municipal and regional populations, and $500 million in incentives for jurisdictions that meet certain housing goals. The funding is part of a larger $1.75 billion economic package to meet the state’s housing crisis.

Russ Heimerich, deputy secretary of communications at the state’s business, consumer services and housing agency, told the Business Journal that the $250 million component could be used to adjust regional housing needs allocations (RHNA) to make them more equitable for the jurisdictions they encompass.

“So, when a regional council of governments divvies up who should build what, I think we’ll have more of a review and approval process going forward,” he said, referring to the process of creating RHNA allocations. These figures denote housing production goals by region. The $500 million component would be dedicated to jurisdictions that show progress in their planning and production efforts. “That would come with fewer strings and go towards general purpose funds,” Heimerich said.

Heimerich added that the $750 million would be granted in addition to a proposed $1 billion in tax credits and funding to help middle-income Californians. The deputy secretary noted that the full details of the proposal, which Newsom’s office announced in mid-March, have not been determined yet. The budget may be revised by the state legislature, which has until June 15 to pass it.

Rebecca Clark, president and CEO of LINC Housing Corporation, a nonprofit developer of affordable housing, said that she was “thrilled” by Newsom’s budget proposal. “We finally have state leaders recognizing that there’s an affordable housing crisis in California, understanding it’s very complicated, but taking concrete steps to do something,” she commented.

California’s housing crisis affects people at multiple income levels, Clark continued, from the homeless to what she called the “general affordable population,” which is made up of people that are working but not making enough to support their housing. “Much of the service population in Long Beach, for example, might qualify for general affordable housing,” she said.

LINC Housing has worked closely with the City of Long Beach to develop affordable housing projects. The most recent is The Spark, a 95-unit apartment community for the formerly homeless and families earning up to 60% of the city’s median income. Groundbreaking for the property was held on March 20 at 1900 Long Beach Blvd. “Long Beach has been very progressive and great to work with,” Clark said. “They were the ones who really responded enthusiastically when we proposed The Spark project.”

Long Beach Mayor Robert Garcia, along with 12 mayors from the state’s largest cities, met with Newsom on March 20 to discuss his budget and offer their recommendations for changes. “We’re very supportive of the governor and his housing plans, and I think heartened by the conversations we had today,” Garcia told the Business Journal in an interview on the same day. “We are supportive of building more affordable housing. We need it.”

Garcia added that he and his fellow mayors are even more concerned with the issue of homelessness. “The mayors were there today to advocate for more funding to go directly into homelessness and programs that get people directly from homelessness into housing,” he said.

In his January budget, Newsom set aside $500 million for homeless programs, transitional housing and subsidies – a comparable figure to what Gov. Jerry Brown set aside in his last budget. Garcia said that the mayors have asked Newsom to increase that figure by up to a billion dollars.

HHH Gives Projects a Boost

LOS ANGELES BUSINESS JOURNAL

Local builders tap $800M in public funds for supportive housing

By Hannah Madans
April 12, 2019

More than $800 million in public funds allocated to combat homelessness in Los Angeles has made its way to private companies and nonprofits looking to develop housing projects since Proposition HHH passed.

The top five recipients of the public funds, which come from a bond measure funded by a property tax approved by city voters, are the Skid Row Housing Trust, Coalition for Responsible Community Development, Affirmed Housing Group Inc., Figueroa Economical Housing Development Corp. and Linc Housing Corp.

The five companies have secured $58.6 million, $57.5 million, $44.7 million, $43 million and $37.5 million in public funds, respectively, according to data posted on the Los Angeles Housing and Community Investment Department’s website.

Other large affordable housing developers that have received HHH funding include Path Ventures, Single Room Occupancy Housing Corp. and Thomas Safran & Associates Inc.

The disbursements are part of a $1.2 billion dollar fund the city is using to help finance so-called supportive housing — developments with on-site services like job training, substance abuse treatment, child care, social workers and educational programming.

The ballot measure responsible for the funds — dubbed HHH — has given supportive housing developers an early cash infusion important for getting projects off the ground, according to Path Ventures Executive Director Amy Anderson.
“The thing that has been so special about HHH funding is that the city was willing to commit those funds to projects early,” she said. “For a locality to best support an affordable housing project, they need to jump in strong, and they need to jump in early.”

The ballot measure also created a more streamlined entitlement process for supportive housing developments, allowing for faster project approval, according to Linc Housing Chief Operating Officer Suny Lay Chang.

“(HHH is) integral in getting these projects built and financed,” she said.

Both Path and Linc have three projects with HHH funding in the pipeline. Linc’s funded projects include developments at 3200 W. Temple St. in Westlake, 1424 Deepwater Ave. in Wilmington and 11408 S. Central Ave. in Watts, and the company is hoping to get one or two more financed with HHH funds.

Path Ventures recently completed the first stage of Path Metro Villas, which touts itself as the first HHH funded project to start construction. The second stage of the project is in the works as well. When completed, it will have 187 units.
Housing help

The $1.2 billion bond measure, which was approved by voters in November 2016, aims to aid in the construction of roughly 10,000 housing units for homeless individuals and those in danger of becoming homeless. It also provides for facilities to increase access to services for mental health, and drug and alcohol treatment. The Housing and Community Investment Department, in conjunction with other city agencies, decides how to allocate HHH money, which comes from property owners who pay an average of $9.64 per $100,000 of assessed property value. As of March, $810 million in HHH funding had been committed to 79 projects which represent a combined 5,388 units, according to the Housing and Community Investment Department.

Los Angeles’ homeless crisis: too many tents, too few beds

CNN

By Maeve Reston
Dec. 18, 2019

In Los Angeles’ Skid Row, tents line entire city blocks. These makeshift shelters for the city’s homeless are now an almost permanent fixture of the city’s landscape, with barbecue grills and clusters of bikes standing alongside them.

Some residents have tethered their tents to nearby fences and industrial buildings. Others run long power cords from their tents to nearby light poles to tap into the city’s power grid. A few Skid Row pet owners have created small dog yards next to their tents under tarps to block out the sun and makeshift fencing. On a recent evening in this industrial part of LA’s downtown, a young woman was washing her hair and her tank top in the jet of water gushing from a fire hydrant into the street.

As Los Angeles city and county officials struggle to shelter and build housing for nearly 60,000 people who are living on the streets, they are facing resistance — not just to new structures in neighborhoods where residents fear more crime and blight, but also from some within the homeless community, who insist they would rather continue living independently on the streets in their tents.

While the homeless crisis is perhaps most visible in California, it is gripping so many other cities, including Washington, that many of the 2020 Democratic presidential candidates are beginning to face questions from voters about their plans. In 2018, about half of all Americans experiencing homelessness lived in one of five states — California (24%), New York (17%), Florida (6%), Texas (5%) or Washington state (4%), according to the 2018 Annual Homeless Assessment Report, presented to Congress in December.

In dozens of interviews with unsheltered people in LA over the past year, many told CNN they won’t apply for housing because they are afraid of the police, or unable to access the right documents to apply for ID, or sometimes simply wary of losing their independence if they are forced to live under rules that might be imposed if they moved into subsidized housing facilities.

Tents are now all over LA County. But the so-called “shelter-resistant” population is most evident in Skid Row, the portion of downtown where many of the city’s homeless shelters, temporary housing and homeless services have traditionally been concentrated.

At the root of this tremendously complex problem is the fact that many within LA’s unsheltered population are grappling with substance abuse addictions and untreated mental illness. Another major factor is that a series of lawsuits against the city — aimed at preserving the rights of homeless people to protect their property — has created a semipermanent tent culture in some sectors of LA.

Under city policy, tent-dwellers are required to take down their tents during daylight hours to clear the streets for pedestrians and business owners. But because of the lawsuits, that policy is not being uniformly enforced. In some areas it does not appear to be enforced at all.

The lawsuits and court injunctions against the city have had other unintended consequences. Because of the proliferation of tents, police say, it is much harder to identify and halt drug dealing and human trafficking. The legal battles have also complicated the city’s ability to clear trash-strewn streets, because it is not easy to identify what bedding or clothing might belong to an unsheltered person living nearby.

HOMELESS WOMEN MOST VULNERABLE
The way in which tent culture feeds resistance to housing is one of the greatest frustrations for Los Angeles Police Officer Deon Joseph, who has worked in Skid Row for more than two decades both as a homeless advocate and enforcer.

During several nighttime patrols through Skid Row, he reeled off countless stories of unsheltered women who he has tried to get into the pipeline for housing, in part because they are among the most vulnerable to sexual assault, domestic violence and even demands for money from gang members who try to charge rent on certain blocks.

Several times a year, Joseph holds what he calls “Ladies Night” for the women of Skid Row — a workshop where he brings in advocates to teach self-defense, how to report assault and rape, and legal rights.

He often cites the example of a 70-year-old woman named Lena living in Skid Row who he got to know well but who was resistant to housing: “I tried to house her, tried to house her, tried to house her,” Joseph said, “and then one day I came back and someone found her dead in a pile of garbage. A human being found in garbage.”

Joseph notes that scores of well-meaning volunteers and church groups show up on Skid Row each month to try to help the population by providing food, clothing and even new tents. But in Joseph’s view, that assistance often perpetuates the cycle of people living on the street.

“The shelters and the missions here, they give food and clothes to draw people in to get the services to that help people get on their feet — like drug programs, alcohol programs, domestic violence program, job programs,” Joseph said. “But many of the folks from here won’t use them, because they’re getting their needs met on the streets of Skid Row.”

RISING HOMELESS RATE
As a result of several ballot measures approved by LA voters in the past few years, the city and the county spent hundreds of millions of dollars last year to address the homeless crisis. But the number of people living without shelter still went up 12% in the county and 16% in the city. Homelessness among youth and children rose 24% over the previous year, according to the 2019 Greater Los Angeles Homeless Count Results.

Of the nearly 60,000 people who are homeless in LA County, 19% told officials they came to LA County from out of state, 15% said they arrived from another part of California and 1.2% said they came from outside the United States.

While the homeless count in Los Angeles was shocking, the rise in homelessness in neighboring counties was equally bracing. Homelessness was up 43% in Orange County over the previous year, 28% in Ventura County and 50% in Kern County.

When questioned about why they had fallen into homelessness, 53% of those who said they were homeless for the first time in LA County cited “economic hardship”– with the lack of affordable housing serving as a major driver for many.

The staggering homeless count rose despite the fact that LA’s coordinated city-county homeless crisis response system helped 21,631 people move into permanent housing last year.

Another 31,500 people have been assessed by case managers and are waiting for housing or rental subsidies, according to city and county homeless officials. The county has opened eight new mental health urgent care centers and a sobering center to expand its outreach.

HOUSING FOR THE HOMELESS
While Los Angeles Mayor Eric Garcetti has confronted serious opposition in some neighborhoods even for his initial goal of placing 15 new shelters in City Council districts across the city, residents of some parts of Los Angeles County have been more receptive to housing for the homeless.

One example is the former Tiki Motel in LA County, a notorious site of neighborhood crime and blight that appeared in the Arnold Schwarzenegger movie “The Terminator.”

Al Nunez, who grew up in East Los Angeles and was homeless for three years after his mother died of lung cancer, is one of the residents who now live at the converted Tiki Apartments.

Nunez was paralyzed by a gunshot wound to the spine 16 years ago. He often got sick during the time he was homeless, and would go days, he said, sleeping in his wheelchair.

“They would call me ‘the statue,’ ” he recalled in an interview. “I was just alone because I was ashamed and embarrassed. Especially, where I was at — it was my neighborhood where I grew up.”

Former friends and acquaintances would often pass him on the street: “They wouldn’t even acknowledge me or say anything to me. But I understand, it’s because it’s a stigma like — ‘You’re homeless’ — It’s like I wasn’t the same person.”

“All I could think about is that I was going to either die from getting sick — from being in my wheelchair — or to the point where I wanted to take my own life because it was just a lot of suffering,” he said. “The only time I would go lay on a bed was when I would end up in the hospital. But … once I was stable, it was like, ‘You’ve got to go back on the street and fend for yourself.’ “

At another housing development called Mosaic Gardens at Willowbrook, in an unincorporated area of LA County, formerly homeless residents or those who were housed here because they were on the brink of homelessness have a playground, a computer lab and financial literacy programs, as well as access to services to help treat substance abuse or mental illness.

Suny Lay Chang, the chief operating officer of LINC Housing Corp., which built the project, notes that they involved the community in the design, from the paint colors to the city-in-the-country feel that they tried to create with a community garden and kitchen.

“We have groups come in to lead cooking classes and demonstration classes to help people learn how to eat healthy, cook healthy. We’ll use some of the vegetables from the community garden to do that,” Chang said. “It’s part of treating the whole individual.”

The project got off the ground, in part, because the community got behind it. One of the community leaders involved was Michael Torrence, a minister at nearby Fellowship Baptist Church who also directs a substance abuse prevention program for youth and families that is part of Volunteers of America of Greater Los Angeles.

Torrence said residents from the Willowbrook community were there “from the planning to the first shovel to the cutting of the ribbons.” “We feel a great sense of ownership,” he said during an interview in the community kitchen of Mosaic Gardens at Willowbrook. “I’m not a resident here, but as far as I’m concerned this is my place too.”

When asked about the resistance in other parts of Los Angeles to building homeless housing units and shelters, Torrence said he would argue that those neighborhoods will be safer if currently unsheltered people have ready access to wraparound services for substance abuse and mental health issues.

“Not in my backyard is only because you have a backyard right now,” Torrence said. “We have to recognize the fact that these are people.”

“If we address this, and provide housing and assistance and support — then you can get past the whole notion of this is the other — and begin to see them as my neighbor,” he said.

“So, your backyard? If they’re invested in it, they will take care of the backyard.”

A NATIONAL POLITICAL ISSUE
When Los Angeles County released its shocking homeless count this month, Sen. Kamala Harris tweeted that housing is a “human right,” noting that her proposed LIFT Act — to give lower-income working families a tax credit of up to $6,000 a year — as well as her “Rent Relief Act” are intended to address the crisis.

The California Democrat and presidential candidate, addressing the Poor People’s Campaign Forum in Washington on Monday, also introduced a new line in her campaign speech, saying, “What we learn in that parable is that neighbor is that person you are walking by who is homeless on the street.”

Julian Castro recently toured storm tunnels beneath the Hard Rock Café in Las Vegas where hundreds of homeless individuals have sought shelter — and on Monday he outlined his plan to “end chronic homelessness by the end of 2028.”

“It wasn’t lost on me or anyone else there that underneath hotels that are worth hundreds of millions of dollars,” Castro said, “you have people who are living in deep poverty, sleeping not even in the street but in a drainage tunnel.”

California voters approached both Joe Biden and Beto O’Rourke citing homelessness as a top concern during their respective visits to the Golden State. A voter in San Diego — a city that erected enormous tent shelters last year to temporarily house hundreds of people — told O’Rourke she was worried about the number of veterans living on the streets. The former Texas congressman noted that some of the homeless veterans he has spoken to in his home state had to wait so long for mental health treatment that they sought drugs on the street to treat their symptoms.

“If you cannot see a doctor and be well enough — then there’s a more likely chance that you’re going to be homeless in the first place,” O’Rourke told the voter during his San Diego town hall in late April. “So starting with health care for everybody — without exception, including mental health care — is so fundamental to being able to get this done. And in California, perhaps especially, where housing prices are going through the roof, we’ve got to make sure that we are creating enough housing units for the demand that is here.”

Sen. Bernie Sanders of Vermont routinely highlights the growing number of homeless people nationwide as he rails against the fact that 40 million people are living in poverty while the “very rich” are “getting richer.” “Tonight some 500,000 Americans, including many veterans, will be sleeping out on the streets,” Sanders said during a speech earlier this month at George Washington University.

The Spark At Midtown Aims To Ignite Change

LONG BEACH BUSINESS JOURNAL

By Brandon Richardson
Dec. 25, 2019

The Long Beach community came together on March 20, despite the threat of rain, to celebrate the groundbreaking of The Spark at Midtown, an affordable housing development that stands to revitalize and activate a vacant lot.

“This project was designed to create a spark and a light for those people who are going to live here,” Rebecca Clark, president and CEO of developer LINC Housing, said during the event. “It’s meant to ignite the collective energies of a whole group of people that are committed to a larger vision.”

Located on a 0.93-acre vacant lot at 1900 Long Beach Blvd., plans for the five-story development consist of 95 apartments for low-income families and individuals who have experienced homelessness. Units range from 570 to 1,068 square feet, including 47 one-bedroom units, 24 two-bedroom units and 24 three-bedroom units. The project is expected to be completed next year.

(Photograph by the Business Journal’s Brandon Richardson)

In addition to 95 affordable residential units, developer LINC Housing’s The Spark at Midtown will feature a health clinic, a YMCA Youth Institute, a cafe, a community kitchen and extensive case management services at 1900 Long Beach Blvd. Pictured from left: John Given, board chair for LINC; Bonnie Lowenthal, retired California assemblymember and LINC boardmember; Bob Cabeza, vice president of community development for YMCA of Greater Long Beach; Long Beach Vice Mayor Dee Andrews; Los Angeles County 4th District Supervisor Janice Hahn; Carolyn Caldwell, president and CEO, Dignity Health – St. Mary Medical Center; John Thomas, board chair of the Long Beach Community Investment Company; Rebecca Clark, president and CEO of LINC; Suny Lay Chang, COO of LINC; and Minh Nguyen, LINC boardmember.

Tenants in 53 of the apartments will pay rent at a rate of 30% of the area’s median income (AMI), while tenants of the remaining 41 units will pay 60% AMI. No resident will pay more than 30% of their income on rent. Aside from affordable units, tenants will have access to intensive case management services, a community room with computer lab, courtyards, a community garden, bikes and meeting rooms.

“Getting people off the streets isn’t enough,” LINC COO Suny Lay Chang said at the event. “You have to help them get back on their feet and you have to give them a track record of proving their worth so that when they go out in the real world, they’ve got something to stand on.”

To further assist tenants, The Spark will house a demonstration kitchen and the Deli 456. Operated by Mental Health America Los Angeles, the social enterprise cafe will provide residents with job and culinary skills, as well as a reference for future job applications. The ground floor of The Spark is also slated to house the YMCA Youth Institute and a four-room clinic operated by Dignity Health – St. Mary Medical Center.

Being a part of The Spark falls directly in line with St. Mary’s mission statement, according to President and CEO Carolyn Caldwell. “We dedicate our resources to delivering compassionate, high-quality affordable health care services, serving and advocating for our sisters and brothers who are poor and disenfranchised, partnering with others in the community to improve the quality of life,” she said, reading the hospital’s mission statement. “This will be a location for our faculty and for our residents so that they can practice their healing ministry of providing health care . . . for those in our community that are the most vulnerable.”

“After 20 years of doing this work, we have low-income youth of color in Long Beach who are engineers, who are doctors, who are attorneys, who are social workers, and they’re giving back to community,” Bob Cabeza, vice president of community development for the YMCA of Greater Long Beach, said during the event. “We need to give others a home and a place. That’s what The Spark is doing…That is why we’re so excited to be involved in this partnership. I have seen it in this city, and we can teach other cities how to do this right, how to do this well, how to help our children and our families move out of poverty.”

The Spark is LINC’s second project in Long Beach, but its first completely new development. The nonprofit affordable housing developer is celebrating its 35th anniversary this year. It has been located in Long Beach for more than 25 years. The company has developed over 8,000 affordable units statewide.

During construction, The Spark is expected to create 153 jobs, generating more than $3.4 million in business revenue, nearly $7.6 million in wages and salaries, and $2.1 million in taxes and fees. Once completed, estimated ongoing annual impacts include 41 jobs, nearly $600,000 in business revenue, more than $1.9 million in wages and salaries, and $478,325 in taxes and fees.

With a price tag of nearly $52.6 million, LINC received funding from several sources for The Spark, including more than $24 million through Raymond James Tax Credit funds, a leading sponsor of the state’s low-income housing tax credit program. Additionally, both Century Housing and Los Angeles County chipped in more $10.3 million and $10.7 million, respectively. The Long Beach Community Investment Company provided $3 million to the project, while the Federal Home Loan Bank of San Francisco supplied nearly $2 million.

“It’s no secret that homelessness and the housing crisis are the greatest challenges of our time. That’s evident by the thousands of people who have no choice but to sleep on our sidewalks, and it’s felt by the families forced to make the impossible decision between buying food and keeping a roof over their family’s heads. And we don’t accept that,” Los Angeles County 4th District Supervisor Janice Hahn said at the event. “These are the kinds of projects that allow neighborhoods to thrive and that’s why I was so happy to help ensure that the county contributed to make The Spark at Midtown a reality.”

Rising Up: Despite coronavirus closures, Long Beach continues to build – April 11, 2020

LONG BEACH PRESS-TELEGRAM

By Hayley Munguia
April 11, 2020

Folks in City Hall — now largely working from home — are optimistic that the city’s recent development boom can withstand the current economic downturn.

Downtown Long Beach, like so many other urban centers across the country and globe, is deserted. Bars are shuttered. Shops are closed. Restaurants are barren, no tables or chairs in sight. But one vestige of life from before the coronavirus pandemic remains: construction workers.

Building continues, if at a reduced capacity. Construction sites have about 20% fewer workers at any given time, according to city staff, to maintain social distancing. Projects have handwashing stations, and masks — a construction site mainstay — are now protecting the workers from more than just airborne debris.

But the sites are still active.

Long Beach continues to build - April 11

Long Beach, which was in the midst of a building boom before the economy ground to a halt to prevent the further spread of COVID-19 — the disease caused by the coronavirus — keeps building. While a few projects are now on hold and some timelines have been extended, the folks in City Hall �� now largely working from home �� are optimistic that the city’s recent development can withstand the blow.

“I really feel 100% confident about that,” Sergio Ramirez, deputy director of the city’s Economic Development Department, said. “I think there’s going to continue to be that momentum.”

Officials’ certainty that development in Long Beach will survive does not mean that the coronavirus hasn’t had an impact.

According to data from the city’s Building Safety Bureau, the total valuation of projects in the plan-check phase between January and March of this year was $48 million �� 54% lower than in the same period last year.

But other metrics show more reason for optimism. In the first quarter of this year, the number of plan check and permit applications were down from the same time period last year — but only by 4%. The number of permits issued were only down 2%.

The number of customers assisted, either by phone or in person, meanwhile, was up 34%; people who were in the process of building in Long Beach, understandably, had more questions this year.

Developers building in the city said the industry’s long timelines — any given building project takes years to complete — help it remain stable through short-term economic uncertainty.

Suny Lay Chang, chief operating officer of the affordable housing developer Linc Housing, said the economic downturn has made her company’s work even more necessary.

“We do serve some of the most vulnerable populations out there,” she said, “and at this time in particular, our services are needed even more than ever.”

So, she said, construction continues.

In Long Beach, Linc Housing is about 60% through the process of building the Spark at Midtown, a 95-unit affordable housing complex that broke ground last year. Another upcoming project, a 40-unit affordable housing complex called Bloom at Magnolia, is set to break ground later this month.

Chang acknowledged that, in some ways, Linc Housing has been lucky.

“We were fortunate in our timing with where our projects were,” she said, noting that the supply of some building materials, such as steel, has gone down because of global shutdowns related to the virus. None of Linc Housing’s projects, she said, are in the phase where steel is necessary.

“I know other developers may be affected,” she said. “As of right now, we’re still able to access the supplies we need, but we know that could change on a day-to-day basis.”

Builders in other industries, though, are feeling the pain.

Gregory Steinhauer, president of American Life, Inc. — a firm that specializes in building and managing hotels and office buildings — said the virus has been “impactful” on business.

Hotel occupancy rates have plummeted to 5 or 10% of usual, he said, and office tenants are having trouble paying the rent.

The company’s only active construction project — the American Life Hotel at 100 E. Ocean Blvd. in Long Beach — is moving forward as planned, he said. The company hopes to receive entitlements for the project over the summer.

But the broader economic picture at the moment, Steinhauer said, has made him unsure about what the future holds.

“It’s an unprecedented time,” he said, “so we’re all just kind of working our way through it one day at a time.”

The people managing the overall development scene in Long Beach, meanwhile, are doing their best to create stability for builders.

Sure, City Hall is physically closed. But its services remain open.

Inspectors continue to go out to sites to do their jobs — while maintaining the appropriate six feet of distance from others. City staffers are accepting plans electronically. Meetings continue, either over video chat or the phone.

“The biggest issue,” Ramirez, with the city’s Economic Development Department, said, “has been the change in perception. People think Long Beach is closed. Even though we’re physically closed, we are still open to the public virtually.”

Ramirez said the city has done its best to make that clear to developers. Particularly in this time of soaring unemployment, he said, it’s important to maintain the jobs, like construction work, that have been deemed essential.

“Folks are still employed,” Ramirez said, “and that’s a major economic development piece. We need to make sure we keep people employed.”

About 80% of the developers the city has contacted during the crisis have responded and are moving forward, Ramirez said.

“Overall,” he said, “it’s a very good picture.”

But Ramirez and developers alike agreed that they can’t predict the future. Some builders, particularly those constructing market-rate residential units, have sought to delay the process.

They want to make sure that, whenever they open, there will be renters to occupy the units.

“People are watching things,” Ramirez said, “and I think the next few weeks are going to be very crucial.”

So, during that time, he said, Long Beach will continue to push one important message:

“We’re still open for business.”

If you are a Long Beach Press Telegram subscriber, you may read the original article here.

Construction begins on 40-unit affordable housing complex in Long Beach – April 30, 2020

LONG BEACH PRESS-TELEGRAM

By Hayley Munguia
April 30, 2020

More affordable housing for people who have been homeless is on its way to Central Long Beach.

Construction has begun on Bloom at Magnolia, a 40-unit affordable housing complex in the Washington neighborhood, officials announced Thursday, April 30.

The project is expected to be finished by the end of next year.

“Building supportive housing for our city’s most vulnerable populations is now more critical than ever,” Mayor Robert Garcia said in a statement. “We are proud of innovative developments like Bloom at Magnolia that offer residents improved quality of life and access to a wide range of onsite social and supportive services.”

Particularly as COVID-19, the disease caused by the coronavirus, continues to spread, officials said the need for affordable housing is clear.

“Now, more than ever, we see that housing formerly homeless individuals can be life changing,” said Emilio Salas, the acting executive director of the Los Angeles County Development Authority.

While there have always been many “dangers that exist for an unsheltered individual,” Salas said, now “COVID-19 is yet another.”

Construction work is considered essential during the pandemic, and workers maintain appropriate social distancing and other safety precautions, according to a statement from the project’s developer, Linc Housing.

“Our work has always been essential,” the firm’s president and CEO, Rebecca Clark, said, “but these challenging times raise this idea of essential to new heights.”

The development, 1770 Magnolia Ave., will include 39 units for people who have been homeless and one manager’s unit. It will also offer a computer lab, office space for residents’ case managers, 3,000 square feet of indoor community space and 3,000 square feet of outdoor common areas.

The Los Angeles County Development Authority is contributing $8.5 million toward the project’s construction, while the Long Beach Community Investment Company is offering $2 million in gap financing. Linc Housing has also received loans from the California Community Reinvestment Corporation and Union Bank, along with funding from other sources.

“Even with so many on our team and others working remotely, our partners at the City of Long Beach and the County of Los Angeles have remained committed to helping us get this much-needed development underway by working with us to finalize the financing and obtain needed permits,” Clark said. “We can’t thank everyone enough for ensuring our work can continue through these trying times. We want to get this supportive housing built as quickly as possible.”

If you are a Long Beach Press Telegram subscriber, you may read the original article here.

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2020

Construction begins on 40-unit affordable housing complex in Long Beach – April 30, 2020

Rising Up: Despite coronavirus closures, Long Beach continues to build – April 11, 2020

2019

The Spark At Midtown Aims To Ignite Change

Los Angeles’ homeless crisis: too many tents, too few beds

HHH Gives Projects a Boost

Governor Newsom Proposes $750 Million To Support Affordable Housing

The Spark at Midtown, a 95-unit affordable housing complex, is just the beginning of new development in Central Long Beach

Developers to break ground this week on 95-unit affordable housing development

2018

Linc Housing Opens Affordable Housing Community for Veterans

Housing crisis requires some creative solutions

New homeless housing complex a sign of things to come

Apartments for homeless veterans set to open in Beaumont in July

Wide swath of Long Beach people to come together to solve homelessness

Belmont considers affordable housing development

100-Unit Affordable Housing Development Planned in Willowbrook

Affordable Housing Complex Wrapping Up in Westlake

Previous Years

2017 Hanley Award Winner: LINC Housing

2017 Hanley Award Winners Announced

Linc Opens LA-Area Affordable Community

Affordable Housing Complex Provides Homes for 31 Families in Need in Willowbrook

County will finance five new affordable housing projects, bringing 304 units to South LA

Non-Profit Developer Starts Construction on Affordable Homes

Developers Talk Affordable Housing Challenges

BBVA COMPASS & LINC Housing Charity Event, Los Angeles

Developer chosen for Fifth and Sonora housing project

Non-Profit Developer Starts Construction on Affordable Homes

LINC Housing Starts Construction on New Affordable Housing Community

Mayor Garcetti’s $8.7 billion Los Angeles budget includes big commitment to fight homelessness

Willowbrook celebrates groundbreaking for 61 low-income homes

Construction Starts on New Apartments for Formerly Homeless Households and Low-Income Families

California affordable housing coalition back rooftop solar power

Pleasant View Apartments in Fresno completes $1.6 million renovation

Cal State Long Beach students earn public relations honor

ANOTHER VIEW: Healthy Housing Helps Us Thrive

Greenbuild 2014: Financing Green Retrofits for Affordable Housing

Retrofit Package Helps Low-Income California Community Go Solar