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​Workforce housing project in Long Beach funded through Cal Cities-sponsored bond agency’s new program

March 31, 2021
An affordable housing property has been acquired for middle-income residents in the city of Long Beach from the issuance of $135.73 million in tax-exempt bonds through the California Statewide Communities Development Authority’s (CSCDA) new Workforce Housing Program. 
 
The project will assure available housing for those that earn too much to qualify for traditional affordable housing, but cannot afford to live where they work.
 
About Oceanaire Apartments
 
Constructed in 2019, the Oceanaire Apartments in Long Beach provides a 216-unit, multifamily residential rental community. The property includes a swimming pool, spa, courtyard with water feature, rooftop deck, meeting rooms, fitness center, lounge with coffee bar, and bike repair room.

The project will guarantee that studio, 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).
 
CSCDA partnered with the city of Long Beach and others, in connection with the acquisition of the project and issuance of $135.73 million in tax-exempt Essential Housing Revenue Bonds.
 
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 remains in short supply.
 
Workforce housing is intended 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 is for middle-income or moderate-income individuals and families typically earning between 80 percent and 120 percent AMI. Unfortunately, workforce housing 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 and middle income households. 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.
 
The League of California Cities’ co-sponsorship of CSCDA continues to be a significant benefit for Cal Cities 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 Cal 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 financed, locally-approved projects.
 
Visit CSCDA’s website for additional information on the ways in which CSCDA can help your city.


 
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