Standard Communities, one of the nation’s preeminent affordable and workforce housing investors, and Faring, among California’s most prolific developers, have formed a joint venture to create over $2 billion of “missing-middle” housing throughout California over the next 18 to 24 months. The strategic partnership, Standard-Faring Essential Housing, will engage in both ground-up development of middle-income housing and the acquisition and conversion of existing market-rate properties.
Utilizing California’s innovative public-private partnership structure designed to facilitate the creation of middle-income housing, Standard-Faring Essential Housing recently created over 650 units of dedicated middle-income housing in Southern California with a total capitalization of over $400 million.
These transactions utilized tax-exempt bond financing provided by CSCDA Community Improvement Authority. Upon taking ownership, CSCDA Community Improvement Authority worked with the Standard-Faring Essential Housing as Project Administrator to immediately lower rents for new residents who qualify with incomes between 80% and 120% of the area median income (AMI.) Traditionally, California’s state-administered affordable housing programs have focused on providing housing for households earning no more than 80% of the AMI. This has left a “missing-middle” gap, comprised of households that earn too much to qualify for traditional affordable housing programs, yet not enough to afford market-rate rents. Standard-Faring Essential Housing is spearheading opportunities to fill that gap.
“By focusing on middle-income housing, California cities can ensure that middle-income families and essential workers such as first responders, hospital and healthcare staff, and teachers, can afford to live near their jobs in the communities they serve,” said Jeffrey Jaeger, Principal and Co-Founder of Standard Communities.
“The expansion of middle-income housing is critical to California’s future as we prepare to host the Olympics in 2028 and is a key component of the state’s Regional Housing Needs Allocation (RHNA) goals. This new venture with Standard Communities is a powerful vehicle to ensure vibrant, mixed-income neighborhoods are accessible to middle-income families including essential workers across California,” said Jason Illoulian, CEO of Faring.
“California is in the midst of a severe housing shortage, and Standard-Faring Essential Housing’s public-private partnerships fill a crucial need for middle-income families,” said Chris Cruz, Managing Director of Essential Housing at Standard Communities.
“This joint venture will provide cities across California desperately-needed middle-income housing, without utilizing funding typically reserved for low-income and homeless housing,” said Darren Embry, Vice President of Community Development at Faring.