Cal Cities-sponsored bond agency issues $27.3 million in tax-exempt bonds for affordable housing in Merced

New affordable housing for low-income residents in the City of Merced will be constructed with funding from the issuance of $27.3 million in tax-exempt and taxable multi-family affordable housing bonds through the California Statewide Communities Development Authority (CSCDA).

Childs & B Street Apartments in Merced is a new construction project designed to provide the community with 119 housing units which include one-, two-, and three-bedroom housing units.

CSCDA and the project builder, The Richman Group, partnered with Bank of America and Orrick Herrington & Sutcliffe LLP to provide $27,333,716 in affordable housing bonds to build the project. The project will ensure that 100 percent of the rental housing units will be rent restricted for low-income tenants, and affordable units will be restricted to households earning 50 percent or less of the area median income. The financing for the project will maintain the affordability of units for low-income tenants for 55 years.

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.