Pacific West Communities is developing two affordable housing developments in California.
The firm recently secured $66.4 million in financing from KeyBank Community Development Lending and Investment (CDLI) for the projects.
First, CDLI is providing $44.2 million to fund the construction of River Oaks Family Apartments, a 48-unit development for families at 30%, 40%, 50%, and 55% of the area median income (AMI) in two- and three-bedroom units in Plumas Lake.
Construction and permanent financing are being arranged by KeyBank, with a $14.7 million tax-exempt construction loan, a $9.1 million taxable construction loan, and a $2.4 million permanent loan financed with tax-exempt bonds. KeyBank is also providing $18 million of low-income housing tax credit equity. Additional sources of financing include an $8.3 million loan from California Department of Housing and Community Development (HCD), a $324,000 loan from the Regional Housing Authority of Sutter, Yuba, Colusa & Nevada Counties, and a $248,000 loan from the Yuba County.
The project sponsors for River Oaks are Pacific West Communities and Building Better Partnerships, an affiliate of the Regional Housing Authority. Pacific West Communities is part of The Pacific Cos., a leading affordable housing developer in the West.
CDLI officials said they are also providing $22.2 million of financing for the construction of Poplar Place, a 36-unit affordable housing that serves low-income families and farmworkers at 30%, 50%, and 60% of the AMI with a mix of two- and three-bedroom units in Wasco. Construction and permanent financing are being arranged by KeyBank with a $9.5 million tax-exempt construction loan and a $2.2 million permanent loan financed with tax-exempt bonds. KeyBank is also providing $10.5 million of tax credit equity. In addition, the project has received $6.1 million in financing through HCD.
The project sponsors are Pacific West Communities and Central Valley Coalition for Affordable Housing (CVCAH), a nonprofit public benefit corporation whose primary focus is in support services. CVCAH will provide social services with a focus on life skills training, education, and other supportive services. All services will be provided to the residents at no charge.
Becca Ickowicz and Jeremiah Drake of KeyBank CDLI structured the financing.