September 30, 2004
SACRAMENTO, CA – The California Housing Finance Agency's (CalHFA) Board of Directors has approved $13.45 million in loans to Central Plaza Housing Partners, L.P. to preserve and rehabilitate the 28-year-old Central Plaza Apartments for affordable housing. Central Plaza Apartments will serve approximately 112 families in the city of Santa Maria.
Renovation is expected to begin in November 2004 with anticipated completion by September 2005. Interior and exterior renovations will include window replacement, updated bathroom fixtures, replacement of kitchen cabinets and appliances, lighting, irrigation, and the construction of a new community building. During renovation, temporary relocation for existing residents will be minimized in an attempt to limit disruption. Central Plaza Apartments includes 112 units of garden style apartments, central laundry facilities, children's play area, and parkland containing gazebo, play area and green space.
The apartments serve families with incomes at 50% to 60% of the area median income. The rents will be restricted to below-market averages to ensure affordability to all residents.
"In Santa Maria, over 3,500 people are on the waiting list for subsidized rental housing. Finding affordable housing is critical for these families," said Theresa Parker, CalHFA Executive Director. "With partners like the County of Santa Barbara, we at CalHFA are able to achieve our mission by providing below-market rate financing to create safe, decent and affordable housing."
The $6.24 million CalHFA construction loan package is tax-exempt, interest only, financing at a 3% interest rate for a one-year term. CalHFA will provide additional tax-exempt financing with a $6.24 million permanent first mortgage loan and a $975,000 interest reduction payment (IRP) loan, both at 5.7% fixed interest rate, once construction is complete.
CalHFA, the State's affordable housing bank, was chartered in 1975 to meet the housing needs of low and moderate income Californians. More information on the Multifamily Loan Finance programs and the full complement of CalHFA programs is available at 1.800.789.2432 or www.calhfa.ca.gov.
Contact: Melissa Flores
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