Construction has begun on the rehabilitation of Courtyards at Penn Valley, an affordable housing development in Northern California.

Courtyards at Penn Valley, which provides affordable housing for low-income families, is 98% occupied with a waiting list.
Courtyards at Penn Valley, which provides affordable housing for low-income families, is 98% occupied with a waiting list.

The community includes 11 townhome-style buildings. When updated, Courtyards at Penn Valley will offer 42 two- and three-bedroom units, in which 10 are designated as HOME units and 15 units will benefit from Section 8 project-based vouchers. Six units will be set aside for households with disabilities.

Financing for the acquisition and rehabilitation of the property includes $2.71 million in low-income housing tax credit (LIHTC) equity from Hunt Capital Partners.

Courtyards at Penn Valley was placed into service in 2003 and has reached the end of its initial tax credit compliance period. Hunt Capital Partners’ investment helps to ensure the long-term operation of the affordable housing development.

“We are pleased to invest in Courtyards at Penn Valley to ensure its longevity,” said Dana Mayo, executive managing director of Hunt Capital Partners. “We are also glad to work with APG again as the developer has a great track record of completing tenant-in-place rehabilitations on budget and delivering tax credits on time.”

Located in Penn Valley in Nevada County, Courtyards at Penn Valley is APG and Hunt Capital Partners’ sixth transaction together. APG’s development team includes Day Builders, Musser: Architects, and FPI Management.

Site and exterior improvements include pavement repair, installation of additional barbecue and picnic areas, a new roofing overlay, and updates to the community space for accessibility. Units will be outfitted with new kitchen appliances, bath cabinets, and countertops.

The total development cost for Courtyards at Penn Valley is $9.16 million. Hunt Capital Partners syndicated the federal LIHTCs through a multi-investor fund. Bonneville Mortgage provided $4 million in tax-exempt construction-to-permanent financing through the U.S. Department of Agriculture Section 538 loan program. The California Statewide Communities Development Authority issued $1.9 million of tax-exempt bonds, which were purchased by HCP Bond Investors to finance construction. Soft financing was provided by the state Department of Housing and Community Development via the assumption of a $1.38 million HOME loan as well as by Nevada County Housing Development Corp. via the assumption of a $195,000 Community Development Block Grant loan and $425,000 of seller financing.