Construction has started on a 166-unit development that will bring affordable housing opportunities to low-income seniors in Orange, California.
Under development by USA Properties Fund and Riverside Charitable Corp., The Orion will serve residents 55 and older who earn 30% to 70% of the area median income. It also will include eight permanent supportive housing units.
“Finding affordable housing has become a major challenge in California, where there is a critical shortage and tremendous competition for available apartments for low-income seniors,” said Geoff Brown, president of USA Properties Fund. “The Orion is an excellent example of far-reaching community support and partners working together to help ease the housing—and financial—burden that so many seniors face.”
Rather than a traditional groundbreaking with shovels, officials recently wielded sledgehammers to take an initial swing at the former Rehabilitation Institute of Southern California structure on the property to make way for the apartment community.
The city of Orange, Orange County, and the Orange County Housing Finance Trust provided financial support for the $64 million development. The California Tax Credit Allocation Committee and the California Tax Credit Allocation Committee awarded highly competitive tax credit and bond funding for the development. Bank of America was the tax credit equity partner and offered favorable terms as the construction lender. And, Citi Community Capital did the same as the permanent lender.
The Orion was also approved for a density housing bonus, significantly increasing the number of housing units allowed per acre to make the project financially feasible.
“That’s very efficient, almost unheard of in Orange County,” said Jatin Malhotra, vice president of acquisitions at USA Properties Fund, about the $385,500 cost per unit.
Publicly traded Safehold (NYSE: SAFE), based in New York City, is the leaseholder of the 3.85-acre property.
