|USDA FUNDS BRING IN NEW CAPITAL FOR AFFORDABLE HOUSING|
|, Mar 01, 2011
In San Luis Obispo County average home prices range anywhere between $300,000 - $600,000 and safe, affordable housing options are rare, especially for large families. In this high cost area, many low income families could not live close to where they work and go to school. 750 Grande Associates wanted to develop a new low-income apartment complex geared toward larger families, but needed affordable permanent financing.
Rural Development was able to assist by providing a $4.15 million loan guarantee on a mortgage funded by Bonneville Multifamily Mortgage. The loan guarantee helped 750 Grande Associates obtain favorable terms on their mortgage as well as a 9% tax credit totaling $11 million in Low Income Housing Tax Credits. Together, this provided the necessary equity to construct a 52-unit apartment complex of three and four bedroom units in the community of Nipomo.
This project brings much need pride to the community, and an affordable, safe place for families to live. Residents have access to a community center equipped with computers, printers and high-speed broadband. There is also a playground and picnic area at the complex. Families have more time is spend with each other, and local business have benefited as well. The new families now shop in the community they live, bringing much needed revue into the local business community. And best of all, rents remain affordable.