Pasadena Awarded $1 Million for Affordable Housing
February 14, 2006
SACRAMENTO, CA – The California Housing Finance Agency's (CalHFA), Housing Enabled by Local Partnerships (HELP) program has awarded the Pasadena Community Development Commission $1 million to augment its Affordable Housing Revolving Loan Program. This represents one of nine California localities awarded a total of $9.1 million in low interest HELP loans to acquire, develop, rehabilitate, or preserve affordable rental or ownership housing.
The Commission will leverage the HELP program financing by pooling it with other sources of affordable housing funds. These funds provide short-term bridge loans to developers for the financing of site acquisition, predevelopment and construction costs for development and the rehabilitation of ownership and multifamily rental units.
The Commission received a commitment of $1.5 million for this program in 2004. In addition, the Commission received a $1 million commitment in 1999 under the HELP program's first round of funding that was used to rehabilitate a "blighted" 313-unit multifamily rental project.
With the funds, the Commission intends to develop approximately 200 units of homeownership and multifamily rental units over the next ten years. Of the funded projects, a minimum of 25% of the rental units will be made available to households at or below 50% of the area median income. The same ratio applies to units in funded ownership projects that will be reserved for households with incomes at 100% of area median income or less.
"CalHFA is pleased to partner with the Pasadena Community Development Commission to provide safe, decent and affordable housing," said Theresa Parker, CalHFA Executive Director. "Supporting the city's affordable housing goals is a 'win-win' for CalHFA and the community."
Since 1998, the HELP program has partnered with more than 94 local government entities to fund $140 million in affordable housing. CalHFA funding provides additional resources to address the localities unmet affordable housing needs by using a competitive process to award loans with repayment terms up to ten years at a 3% percent interest rate. Through the HELP program, CalHFA offers two funding cycles of approximately $10 million in the fall and spring of each year. Recipients of the semi-annual award are evaluated on six criteria: affordability, cost efficiency, maximization of benefits, implementation readiness, resource impact and comprehensiveness of program design.
The California Housing Finance Agency was established in 1975 to meet the housing needs of low and moderate income Californians. To date, HELP funding has participated in the financing of nearly 18,000 units of affordable housing for Californians that are most in need. More information on the HELP program and the full complement of CalHFA programs is available at 800.789.2432 or www.calhfa.ca.gov.
Contact: Melissa Flores