CPP (Community Preservation Partners) has acquired Euclid Villas, a 42-unit multifamily property in El Centro, California, with plans to renovate and retain the asset as an affordable housing project.
The acquisition was made in partnership with Bettencourt Properties Inc and The Beneficial Housing Foundation. CPP’s total development investment is approximately $14.85 mil, which includes the purchase price of $7.25 mil and an estimated per unit renovation cost of $81.2k.
“The need for affordable housing is greater than ever. Since 2000, median rent has increased 38%, while median renter household income has only increased by 7%,” said Karen Buckland, Vice President, Development at CPP.
The total site renovation will address years of deferred maintenance and will bring modernization, increased accessibility, and energy efficiency to the community. Euclid Villas will receive extensive improvements targeting energy efficiency, such as new HVAC units, updated energy-efficient appliances in each unit, new water heaters, and LED lights and fixtures. Units will also receive new toilets, vanities and mirrors, and vinyl plank flooring throughout. Additionally, 5% of units will be upgraded to meet ADA compliance.
Common area upgrades will include roof and skylight replacement, along with upgrading all windows to dual pane. Exteriors will receive new paint, exterior LED lighting upgrades, and stair and railing work. Other community upgrades include the construction of a new community and office building, new community signage, parking lot repair, resealing and restriping, and the installation of a new playground.
Additionally, Euclid Villas residents will be able to participate in adult education, health and wellness, and skill-building classes and services provided by LifeSteps. Classes include financial literacy, computer training, home-buyer education, GED, resume-building, and art and parenting education, among others. Health and wellness services include crisis intervention, counseling and emotional support, eviction prevention, and physical and mental health assessments, among others.
The property’s Housing Assistance Payment (HAP) Section 8 contract was set to expire, but with CPP’s involvement, the contract will be preserved for another 20 years. Additionally, the property encumbered a new Land Use Restriction Agreement (LURA). As a result, the homes will now remain affordable and prevent displacement of residents earning 60% of AMI or less for 55 years.
Renovations are expected to be completed in December 2024. Partners on the project include the California Tax Credit Allocation Committee (CTCAC), who issued 9% low-income housing tax credits; California Bank and Trust will serve as the lender; and WNC & Associates provided equity financing.
