LOS ANGELES--(BUSINESS WIRE)--Hunt Capital Partners (HCP), in partnership with Alliance Property Group (APG) and Community Bible Community Development Corporation (CBCDC), has announced the closing of $37.0 million in federal Low-Income Housing Tax Credits (LIHTC) and $15.1 million in state LIHTC financing for the redevelopment and expansion of Valley Pride Village, an affordable housing community that has provided a secure home for San Fernando Valley seniors since 1971. Located in Sylmar, California, the development will preserve its 88 existing homes and introduce 92 new housing options for seniors.
Valley Pride Village’s rehabilitation and expansion will help alleviate the urgent need for affordable housing as the senior population in Los Angeles is projected to increase by 24% and surpass 1 million by 2030, making up nearly one in four Los Angeles residents. The project qualified for a density bonus under the City of Los Angeles’ Executive Directive 1, which is the City’s latest move to advance affordable housing within the county. Los Angeles seniors have experienced a growing housing need due to a combination of fixed incomes, increased housing costs, and various physical and sensory disabilities that make it difficult to find accessible and affordable housing. A 2021 Housing Needs Assessment from Los Angeles City Planning revealed that 42% of Los Angeles seniors are renters, with nearly 65% of them cost burdened with housing.
“HCP is grateful for our partnership with APG and CBCDC as we work to create and preserve quality housing opportunities for Los Angeles seniors,” said Hunt Capital Partners Chief Operating Officer Amy Dickerson. “Many seniors live on fixed incomes and seniors across the country are increasingly finding it difficult to find and maintain an affordable place to call home, especially here in Los Angeles. Valley Pride Village ensures that 180 senior Angeleno households will have access to quality housing where they can age with a little more peace of mind.”
Residents will benefit from a variety of services, ranging from skill building and adult education to health and wellness that will be provided free of charge by All Things Are Possible After School & Family Resources Centers. The services will include programs tailored to meet the unique needs of senior residents, prioritizing health, well-being, and community spirit.
Valley Pride Village will offer a mix of studio, one-, and two-bedroom homes for seniors who earn up to 30-80% of the area median income. The existing buildings within the community will undergo extensive renovations, including upgrades to cabinetry, countertops, faucets, and heating systems, as well as installation of LED lighting and appliances like a refrigerator and a range. Exterior enhancements will feature new roofing, windows, paint, and an improved clubhouse with a new handicap accessible restroom. Valley Pride Village will also construct a new two-story residential building to bring additional housing choices for seniors.
“Thanks to the unified efforts of the City of Los Angeles, the Housing Authority of the City of Los Angeles, and LADWP with streamlined processes for affordable housing. Together with our lenders, financing team, partners and development team, Valley Pride Village has reached a major milestone with Hunt Capital Partner closing with their upper tier investor J.P. Morgan,” said Alliance Property Group President Danielle Curls Bennett. “We’re proud to see the renovation and new construction work progressing, bringing us closer to providing sustainable, affordable housing that benefits both our community and the environment."
Led by Danielle Curls-Bennett of APG as developer, the development team represents APG’s commitment to partner with BIPOC organizations to empower underserved communities with the resources and momentum to build quality housing and make meaningful impact. CBCDC, a nonprofit that has provided affordable housing for over 50 years and represents one of the oldest Black churches in Pasadena, is the co-developer. Aldrich Burch Construction, Inc. is the general contractor for the existing 88-unit building and Walton Construction is the general contractor for the new residential building and all sitework. KFA Architecture is the architect of record. FPI Management, Inc. will provide property management.
To make the development a reality, Hunt Capital Partners syndicated the federal and state LIHTC through its proprietary fund with J.P. Morgan. The California Housing Finance Authority (CalHFA) provided $62.2 in tax-exempt construction financing, $24.4 million in permanent financing, and $4.0 million in soft financing through the Mixed Income Program. The Housing Authority of the City of Los Angeles provided $18.5 million in tax-exempt construction financing through CalHFA. CBCDC provided $4.0 million in construction to permanent financing.
Environmental Social and Corporate Governance (“ESG”) Investing
Hunt Capital Partners recognizes that its institutional investors are seeking to increase the social value of their investments to help further their ESG initiatives. An investment in affordable housing not only improves the living conditions of its residents, but it also helps to remove obstacles that stand in the way of creating a healthy, safe and stable home environment for low-income families and seniors. When families spend less on housing related expenses, they have more resources available for other essentials such as food and clothing, or even extracurricular activities and educational programs. One of the most significant benefits to providing quality affordable housing is an increase in an individual’s physical and mental health. Hunt Capital Partners’ affordable housing investments create a lasting effect on the people and communities they serve for generations to come.
About Hunt Capital Partners
Hunt Capital Partners (HCP) is the tax credit syndication division of Hunt Companies, Inc. (Hunt). HCP specializes in the sponsorship of Federal and State Low-Income Housing, Historic, and Solar Tax Credit Investments funds. Since its inception in 2010, HCP has raised over $3.3 billion in tax credit equity in over 48 proprietary and multi-investor funds. HCP manages almost 760 project partnerships representing over 75,000 homes in 48 states and territories. Founded in 1947, Hunt is a privately held company that invests in businesses focused in the real estate and infrastructure markets. The activities of Hunt’s affiliates and investors include investment management, asset management, property management, development, construction, consulting and advisory. For more information on HCP, please visit www.huntcapitalpartners.com, or for Hunt, please visit www.huntcompanies.com.
