State Approves Funds For Two Local Housing Projects

Two major affordable housing developments totaling 244 affordable units received state financing awards to fund the construction of the projects.

On April 28, the California Debt Limit Allocation Committee (CDLAC) and the California Tax Credit Allocation Committee (CTCAC) approved allocations of tax-exempt bonds and low income housing tax credits for The Salvation Army Pasadena Hope Center, 1000 E. Walnut Ave. and Pasadena Studios, 274 and 282 N. Oakland Ave.

The Salvation Army Pasadena Hope Center is a 66-unit permanent supportive housing project developed by The Salvation Army which includes a food pantry and a services center. The project will serve single persons experiencing homelessness, including veterans.

State financing allocations are estimated to yield approximately $18.7 million in tax-exempt bond financing and $19.8 million in tax credit investor equity for the project. On July 27, the City Council committed $2 million in development loan assistance to the project and allocated project-based Section 8 rental subsidy vouchers for 65 of the units. Construction is expected to begin in October and completed in April 2023.

Pasadena Studios is a 181-unit rental project developed by Pasadena Studios, LLC. The development, which is subject to the City’s Inclusionary housing ordinance and CDLAC/CTCAC regulations, will provide 179 studio units of affordable housing for persons with income up to 60% of area median income (low income).

On that project, the state financing allocations are estimated to yield approximately $24M in tax-exempt bond financing and $23.3M in tax credit investor equity for the project. Construction is expected to begin in August, with completion in February 2023.