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League-Sponsored Bond Agency Issues $231.8 Million in Tax-Exempt Bonds for Affordable Housing in National City, Educational Housing in Riverside and a Community Hospital in Redlands

November 18, 2016
Some of the most significant benefits of League membership for cities since 1988 have flowed from the League’s co-sponsorship of the California Statewide Communities Development Authority (CSCDA).
 
This program provides a variety of public agencies and developers access to low-cost, tax-exempt financing and economic development tools. CSCDA recently issued $231,822,392 in tax-exempt multi-family affordable housing bonds for the Paradise Creek in National City; tax-exempt bonds for Lancer Educational Housing LLC (LEH LLC), in conjunction with California Baptist University in Riverside; and Redlands Community Hospital in Redlands.
 
About Paradise Creek II Apartments
 
The project is the second phase of Paradise Creek, an additional 92-unit affordable housing community for low-income families located on two acres by Related California and Community HousingWorks (CHW). Recognized as the transformative cornerstone of National City’s Old Town neighborhood revitalization, Paradise Creek is a transit-oriented community development project that will remediate old underground contamination, provide a total of 201 affordable rental homes, a new public park, and will be a catalyst to future revitalization of Old Town. Envisioned by the community and city more than 10 years ago, the Related-CHW team developed the project over the last eight years.
 
The project has been recognized with a number of different awards including the Silver Catalyst Award — California’s Sustainable Strategies Pilot Program, which is  one of five federal Sustainable Communities Partnership Pilots in the country by the U.S. Environmental Protection Agency in partnership with the U.S. Department of Housing and Urban Development and the Department of Transportation. It also received California Housing and Community Development Infill Infrastructure Grant funding, and was also the recipient of over $9 million of competitively awarded California Cap-and-Trade funds earmarked for affordable housing. The project received a U.S. Green Building Council Affordable Green Neighborhood Grant as a LEED Neighborhood Development project. The city of National City provided significant funding in addition to a long-term ground lease reflecting its partnership with the community and Related-CHW.
 
The benefits of the project for National City and San Diego County include the following:
  • 100 percent of the affordable rental housing units will be rent restricted for low-income tenants;
  • The building will bring new economic vibrancy to the project site;
  • A positive impact to restaurants and retail in the area; and
  • The project consists of six studios, 21 one-bedroom units, 35 two-bedroom units, 29 three-bedroom units and one manager’s unit. 
About Redlands Community Hospital (RCH)

A California nonprofit public benefit corporation, RCH owns and operates a general acute care hospital with 229 licensed beds in the city of Redlands. RCH provides health care services primarily to the residents of the eastern portions of the San Bernardino Valley. Originally established as a 40-bed hospital in 1929, RCH has expanded and modernized its facilities to meet the increasing patient care needs of the Inland Empire which includes emergency services, inpatient/outpatient services, home health services, hospice services, maternal services, and family clinics.

CSCDA partnered with Bank of America Merrill Lynch to underwrite the $91,565,000 in tax-exempt bonds for RCH. The bonds were issued to refinance CSCDA’s previously issued Series 2013 Bonds as well as finance improvements to RCH’s facilities, including its operating rooms and emergency room.
 
About LEH LLC & California Baptist University
 
LEH LLC was formed in 2007 for the purpose of receiving, holding, and administering student housing facilities for the direct benefit of California Baptist University. The university is a California nonprofit corporation located in Riverside, organized to operate a private, accredited Christian university offering liberal arts undergraduate and graduate degrees.
 
CSCDA partnered with D.A. Davidson to underwrite the $113,555,000 in tax-exempt bonds for the project. The bonds will be used to finance new student housing facilities for California Baptist University as well as refinance CSCDA’s previously issued Series 2007A and Series 2010A bonds.
 
Background
 
CSCDA is a joint powers authority created in 1988 and is sponsored by the League of California Cities® and the California State Association of Counties. It was created by cities and counties for cities and counties. More than 500 cities, counties and special districts are program participants in CSCDA, which serves as their conduit issuer and provides access to efficiently finance locally-approved projects. CSCDA has issued more than $50 billion in tax exempt bonds for projects that provide a public benefit by creating jobs, affordable housing, healthcare, infrastructure, schools and other fundamental services. Visit CSCDA’s website for additional information on the ways in which CSCDA can help your city.


 
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