Cal Cities-sponsored bond agency issues nearly $600 million in tax-exempt bonds for housing in Escondido and Pleasant Hill
The California Statewide Communities Development Authority (CSCDA) recently announced the issuance of $597,270,000 to acquire workforce housing in Escondido and Pleasant Hill. 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.
Escondido
In Escondido, CSCDA issued $202,120,000 in tax-exempt Essential Housing Revenue Bonds to acquire Rowan Apartments, Haven 76 Apartments, and Alcove Apartments.
Constructed in 2020, Rowan Apartments is a 126-unit multifamily residential rental community that includes a clubhouse, fitness center, outdoor pool and spa, covered parking, and a BBQ and picnic area. Haven 76 Apartments — built in 2016 — is a 76-unit multifamily residential rental community: The property includes a clubhouse, fitness center, and an outdoor pool and spa. Comprised of 122 units and constructed in 2019, Alcove Apartments includes a clubhouse, fitness center, outdoor pool, covered parking, and a BBQ and picnic area.
The joint powers authority partnered with the city and others for the acquisition of the properties and issuance of bonds. One-, two-, and three-bedroom units will be restricted for households earning less than 80%, 100%, and 120% of the area median income.
Pleasant Hill
CSCDA also issued $395,150,000 in tax-exempt Essential Housing Revenue Bonds to acquire Wood Creek Apartments in Pleasant Hill. Built in 1986, Wood Creek Apartments is a 484-unit multifamily residential rental community that includes three swimming pools and spas, a playground, a clubhouse, and a fitness center.
The joint powers authority partnered with the city and others for the acquisition of the properties and issuance of bonds. One- and two-bedroom units will be restricted for households earning less than 80%, 100%, and 120% of the area median income.
About CSCDA’s Workforce Housing Program
Workforce housing is for middle-income or moderate-income individuals and families typically earning between 80% and 120% of the area median income. Unfortunately, workforce housing is not eligible for tax credits, private activity bonds, or most other federal, state, or local government subsidies. 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 remains in short supply.
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%, which is less than the rent limits under AB 1482 (Chiu 2019). Additionally, no existing tenants are displaced under the program.
About CSCDA
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 financed, locally-approved projects. Visit the organization’s website to learn how CSCDA can help your city.