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Cal Cities-sponsored bond agency issues $187.5 million in tax-exempt bonds for two projects through newly created workforce housing funding program

Projects are first of their kind in Southern California cities

January 13, 2021
​Affordable housing properties have been acquired for middle-income residents in the cities of Carson and Anaheim from the issuance of $187.5 million in tax-exempt Essential Housing Revenue Bonds through the California Statewide Communities Development Authority (CSCDA). 
 
The Carson and Anaheim projects were the first two closings under the new CSCDA Workforce Housing Program.  

CTR City Apartments
 
The CTR City Apartments in Anaheim, constructed in 2019, provide the community with a 231-unit, four-story multi-family residential rental community containing 3,500 square feet of retail space, a four-story parking garage, and many other amenities.
 
CSCDA partnered with RBC Capital Markets as underwriter, Orrick, Herrington & Sutcliffe as bond counsel, Manatt Housing Solutions as project administrator, and the City of Anaheim, in connection with the acquisition of the project and issuance of nearly $70.7 million in tax-exempt bonds. The project will ensure that one-, two- and three-bedroom units will be restricted for households earning less than 80, 100, and 120 percent of the area median income (AMI).
 
The Renaissance at City Center
 
Constructed in 2013, the Renaissance at City Center in Carson provides a 150-unit, four-story multi-family residential rental community containing 12,000 square feet of retail space, 472 parking spaces, and several other amenities.
 
CSCDA partnered with Stifel for underwriting, Orrick, Herrington & Sutcliffe as bond counsel, Standard Communities as project administrator, and the city of Carson, in connection with the acquisition of the project and issuance of $116.8 million in tax-exempt bonds. The project will guarantee that one-, two-, and three-bedroom units will be restricted for households earning less than 80, 100, and 120 percent of the AMI.
 
About CSCDA’s new Workforce Housing Program
 
Since its beginning, CSCDA has financed the construction or preservation of nearly 100,000 affordable units throughout California. Despite these efforts, affordable housing for all income levels still remain in short supply.
 
Workforce housing for those that have been termed the "missing middle", individuals and families that earn too much to qualify for traditional affordable housing, but not enough to afford market rate rents in the communities where they work. Workforce housing (sometimes referred to as middle-income or moderate-income housing) is housing for individuals and families typically earning between 80 percent and 120 percent AMI. Unfortunately, workforce housing for the "missing middle" is not eligible for tax credits, private activity bonds or most other federal, state or local government subsidies.
 
Through CSCDA's Workforce Housing Program, government bonds are issued to acquire market-rate apartment buildings. These properties are then converted to income and rent-restricted units for moderate/middle income households, which are generally households earning 80 to 120 percent of AMI. Annual rent increases are capped at no more than 4 percent, which is less than the rent limits under AB 1482, the recently adopted state tenant protection legislation. Additionally, no existing tenants are displaced under the program.
 
Cal Cities' co-sponsorship of CSCDA continues to be a significant benefit for League members. CSCDA has issued more than $63 billion in tax-exempt bonds for projects that provide a public benefit by creating jobs, affordable housing, healthcare, infrastructure, schools, and other fundamental services.
 
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. More than 530 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.
 
Visit CSCDA’s website for additional information on the ways in which CSCDA can help your city.


 
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