Riverside Capital is investing $25.4 million in low-income housing tax credit (LIHTC) equity in Jordan Downs 1B, the second phase of a comprehensive revitalization of the Jordan Downs public housing community in the Watts neighborhood of Los Angeles.
The property will be developed and managed by The Michaels Organization in partnership with the Housing Authority of the City of Los Angeles (HACLA).
When complete, Jordan Downs 1B will provide affordable housing for 133 families with low incomes. The six buildings to be constructed on a vacant 4.22-acre lot will contain 15 one-bedroom, 64 two-bedroom, 44 three-bedroom, five four-bedroom, and five five-bedroom units in addition to two units that will house on-site managers. All units will be affordable to families at or below 60% of the area median income, and all units will be supported by either Rental Assistance Demonstration program or Sec. 8 project-based subsidies administered by HACLA. Residents will have access to a wide variety of services focused on educational success, economic stability, health and wellness, and community empowerment.
“Riverside is proud to have been able to work on the complex financing of this important project,” said Sebastian Corradino, president of Riverside, in a statement “We look forward to our continued partnership with Michaels and the housing authority as they join with the residents of the Jordan Downs community in transforming their vision into reality.”
The $73 million Jordan Downs 1B development is part of a larger master plan initiated by the housing authority that will create a revitalized mixed-income and mixed-use neighborhood on the 49-acre site where Jordan Downs is currently located in combination with an adjacent 21-acre parcel. At build-out, the 700 World War II-era units at Jordan Downs will be replaced by approximately 1,400 new homes for existing residents and new neighbors as well as new retail spaces, a new community center, and over 9 acres of open space. Michaels and BRIDGE Housing were selected by HACLA as the master developers for the public housing in 2012. Phase 1A, developed by BRIDGE Housing, began construction in 2017.
Financing consists of 4% federal LIHTCs, tax-exempt bonds, a permanent Fannie Mae mortgage through Berkadia Commercial Mortgage, a soft loan from the Affordable Housing and Sustainable Communities program (cap and trade) of the state’s Department of Housing and Community Development, and soft loans from HACLA.
Riverside Capital, a joint venture of Berkadia and The Michaels Organization, is a full-service tax credit investment company. It has guided the financing and syndication for more than 7,500 affordable apartment homes across the country, representing $1 billion of equity capital.