This program provides a variety of public agencies and developers access to low-cost, tax-exempt financing and economic development tools. CSCDA recently issued a total of $162,550,000 in tax-exempt revenue bonds for the construction of new student housing facilities located on the University of California, Irvine campus and New Markets Tax Credit
(NMTC) allocation to L.A. Prep Properties II LLC, an affiliate of CED Food II LLC, to finance L.A. Prep South, an approximately 60,000 square foot multi-tenant food production facility located in South Los Angeles.
About CHF-Irvine and the East Campus Apartments
The UC Irvine East Campus Apartments, owned by CHF-Irvine, L.L.C. and operated by American Campus Communities, currently comprise of five, 163 student beds developed in three phases between 2005 and 2010. Collegiate Housing Foundation (CHF), a nonprofit corporation, is the sole member of CHF Irvine. CHF was organized in 1996 exclusively for charitable and educational purposes, including assisting its member colleges and universities in providing housing for their enrolled students and faculty and otherwise assisting its member colleges and universities in furtherance of their educational missions.
The current transaction finances the construction of the new Phase IV-A of the East Campus Apartments, comprised of approximately 410 units and 1,440 total student housing beds for both undergraduate and graduate students. CSCDA and CHF-Irvine partnered with Barclays and Orrick, Herrington & Sutcliffe, LLP to provide the $148,550,000 in tax-exempt revenue bonds for the Phase IV-A Project.
About L.A. Prep South
L.A. Prep South builds upon the success of CED’s original L.A. Prep location, which opened in 2015. L.A. Prep South offers each tenant an exclusive, turnkey food production space along with essential shared amenities including flexible storage, packing areas, office and onsite logistics. The facility helps food companies scale production faster and with lower capital requirements than any other option available to such companies. Facility costs, infrastructure, and permitting are typically significant barriers to entry for small food businesses.
The project is expected to create approximately 40 construction jobs and 260 new permanent jobs. Sixty percent of the permanent tenant jobs are expected to be jobs paying a living wage or higher and 100 percent of the jobs to operate the facility will pay a living wage or higher. Seventy-five percent of the permanent tenant jobs are expected to be filled by residents from low-income communities in and surrounding South Los Angeles.
As conventional financing was not possible based on traditional underwriting standards, CSCDC partnered with Genesis LA, which provided an additional $10 million in NMTC allocation, as well as JPMorgan Chase which provided $1 million in NMTC allocation and is the tax credit equity investor, to complete the financing for L.A. Prep South.
The developer collaborated with the L.A. County Department of Public Health (DPH) to create innovative regulations that allowed for an expedited government approval process for small food manufacturers. L.A. Prep South will provide flexible lease rates to 62 small and medium size food businesses and helps them ramp up their production within days and at a substantially lower cost than if they were to rent space on their own and pay for permitting and startup costs, creating a pathway for startups and neighborhood businesses to expand and prosper. Based on its experience at its original L.A. Prep location, the developer anticipates that approximately two-thirds of the tenants at the project will be woman‐owned companies and one-third of the tenants will be minority‐owned companies.
CSCDC was created as an affiliate community development entity by CSCDA to facilitate investment in low income communities through the use of New Markets Tax Credits. The NMTC program, passed by Congress in 2000, encourages investments in low-income communities by providing a tax incentive for community development lenders and the capital markets to invest in communities that historically have had poor access to capital.
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.