Community Preservation Partners (CPP) has announced the acquisition and planned renovation of a 144-unit affordable housing development in El Cajon, California.
The preservation firm partnered with co-developer The Hampstead Cos. on the deal.
Originally built in 1970, Lexington Green Apartments last underwent a renovation in 2007, which replaced some, but not all, of the original building systems.
CPP’s total development investment is approximately $80 million, which includes the purchase price of $52.9 million and estimated renovation costs exceeding $80,000 per unit, according to officials.
Funding partners include the California Tax Credit Allocation Committee (CTCAC) and California Debt Limit Allocation Committee, which issued and allocated 4% low-income housing tax credits and tax-exempt bonds; WNC; and Ready Capital.
With CPP's involvement, the property’s previously expired affordability status will be extended until 2044 under a renewed Section 8 Housing Assistance Payment contract.
“Lexington Green Apartments aligns with one of CPP's core philosophies of strengthening cornerstone communities in the neighborhood while extending the affordability of the community,” said Evan Cramer, assistant development manager at CPP. “We hope to accentuate the feeling of pride that Lexington Green's residents have for their community while providing the physical upgrades necessary to ensure the property remains a prominent piece of the community for many years to come.”
The renovation will exceed the 10% energy-savings requirement from CTCAC through the replacement of all windows with energy-efficient vinyl retrofit windows, water heaters, Energy Star appliances, and LED light fixtures.
Additional upgrades will include dry-rot repairs, flooring replacement, and new cabinets and countertops. Americans with Disabilities Act-compliant upgrades will be made for units.
CPP and The Hampstead Cos. said they are partnering with LifeSTEPS to provide instructor-led adult educational classes, including financial literacy, computer training, résumé building, nutrition, exercise, parenting, and more. LifeSTEPS will also provide individualized health and wellness services and programs, such as crisis intervention, practical counseling and emotional support, and physical and mental health assessments.