Riverside Capital announced it is making a $13.5 million low-income housing tax credit (LIHTC) equity investment in the construction of an affordable housing development in Lake Elsinore, Calif.
The Cottages at Mission Trail is being developed by an affiliate of Civic Partners with the support of the city. It also has the participation of AOF/Pacific Affordable Housing Corp.
The development is being constructed on almost 20 vacant acres and upon completion will offer 142 two- and three-bedroom homes for households earning between 50% and 60% of the area median income. Rents will be set at a level that will be approximately 40% lower than nearby market-rate housing. In addition to the affordable housing, the site will offer a community building, outdoor recreation areas, and green spaces.
“Closing a LIHTC transaction has its complexities to deal with, and the Cottages was no exception. The Riverside Capital team worked hand in hand with Civic Partners to create an efficient transaction to provide quality workforce housing, a much-needed benefit to the Lake Elsinore community and qualified residents,” said Steve Semingson, founder and CEO of Civic Partners.
Additional financing includes construction and permanent financing provided by Red Stone Tax-Exempt Funding along with a soft loan from the city. The city has offered further support for the project in the form of tax increment financing. Tax-exempt and taxable bonds were issued by the California Statewide Community Development Authority. Hunt Real Estate Capital served as the investment banker and advisor for the transaction.