Hunt Capital Partners and Community Development Partners announced the closing of $8.5 million in federal low-income housing tax credit equity financing for the construction of St. Michael’s Community Housing in Riverside, California.
Located 60 miles east of Los Angeles, St. Michael’s Community Housing will be a 50-unit garden-style development featuring one- and two-bedroom units set aside for households earning between 30% and 80% of the area median income (AMI). The land will be leased from St. Michael’s Church.
“Riverside County’s lowest-income renters spend about 68% of their income on rent,” said Dana Mayo, executive managing director at Hunt Capital Partners. “We are pleased to invest in the development of St. Michaels Housing Community, which will provide multiple housing options for low-income families and help alleviate the cost-burden of rising rents. We also thank the city and the state for their financial support of this development.”
The groundbreaking for St. Michael’s Community Housing is set to take place in the coming weeks, and construction is scheduled for completion in April 2022.
Upon completion, St. Michael’s Community Housing will offer 24 units at 30% of the AMI, one unit at 50% of the AMI, 14 units at 60% of the AMI, 10 units at 80% of the AMI, and one manager’s unit.
St. Michael’s Community Housing will help address the area’s homeless population, with a soft set-aside of 24 units for residents who are eligible for permanent supportive housing (PSH) under the state No Place Like Home program; these units will also benefit from a Section 8 Housing Assistance Payments (HAP) contract. The PSH apartments will be considered “floating units” for adults with serious mental illness or children with severe emotional disorders and their families, who are homeless or at risk of chronic homelessness. Riverside County Coordinated Entry System will refer applicants either directly or indirectly through the Riverside University Health Systems—Behavioral Health, which also will provide all services needed for the No Place Like Home tenants. Additionally, Mercy House Living Centers, managing general partner for the development, will provide supportive services—such as a service coordinator as well as adult education, health and wellness, and skill building classes—for all residents.
Amenities will include a patio or balcony, central air conditioning, a full appliance package, as well as access to a clubhouse/community room, on-site management office, a picnic and recreation area, Wi-Fi, and central laundry rooms. Residents also will be able to share certain common amenities with the St. Michael’s Church across the street, including its chapel, community garden, and parking spaces.
To help Community Development Partners finance the $19.7 million development, Hunt Capital Partners syndicated the federal tax credits through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 41. BBVA Mortgage Corp. provided $11.46 million in construction financing. Citi Community Capital provided $4.87 million in permanent financing. Other sources include a city of Riverside soft loan of $2 million and a California Department of Housing and Community Development soft loan of $4.3 million.
The team includes Precision General Commercial Contractors as the general contractor. Escher GuneWardena Architecture is the project architect. FPI Management is the property management agent.