Eden Housing has completed its merger with South County Housing (SCH), resulting in the preservation of 1,695 affordable homes across 41 properties in California’s Monterey, San Benito, Santa Clara, and Santa Cruz counties.
Eden assumed ownership of the properties, merged property operations and resident services, and recently transferred ownership of the final property within the SCH affordable housing portfolio. The total assets transferred were approximately $195 million.
“Eden Housing’s experience, reputation, and financial strength put us in a strong position to successfully complete the large portfolio transfer of South County Housing. Subsequently we’ve been able to orchestrate a turnaround in the financial and physical performance for these communities,” says Linda Mandolini, Eden Housing president. “We are grateful for the support from our local partners, investors, and the state of California. With their support, this merger not only preserves more than 1,600 homes, but it ensures they remain affordable for years to come.”
It’s been a long process with the nonprofit affordable housing organization embarking on the complicated transaction in 2013 by seeking third-party consents needed to transfer ownership and change property management companies. SCH property management and resident services staff transferred to Eden Housing Management and Eden Housing Resident Services effective Jan. 1, 2014. Eden also elected two South County board members, Joe Postigo and Doug Kuerschner, to its board.
Like many aging portfolios, a large number of older properties needed improvements. Eden performed rehabilitations on seven properties. Additionally, a rehab is underway at Charles Apartments in Marina and Sycamore Glen in Morgan Hill.
Eden’s preservation of affordable housing communities plays an essential role in addressing the housing crisis in California. In addition to the 1,695 homes preserved in partnership with South County Housing, Eden has preserved over 2,500 homes in recent years through acquisitions.
“As board chair of South County Housing for many years, I was happy to see the merger with Eden Housing come to fruition,” Kuerschner says. “Now as an Eden Housing board member, I feel it is important to keep the South County portfolio intact and affordable. My hope is to increase the amount of affordable housing in the South Bay, as was the mission of South County Housing and now Eden Housing.”