Bellflower Friendship Manor, an eight-story, 144-unit tower complex in southeast Los Angeles County, was owned by a local nonprofit church group that was not capitalized enough to address the ongoing capital needs of the property as it had become too expensive and burdensome for the church. They further needed a capital event to fund the needs at their church as they were becoming financially burdened by the property and drop in membership. Their primary concern was that the residents would keep their affordable housing after the sale and that any new owner would remain excellent stewards of the property. CPP was selected as the purchaser with the goal of providing them with the capital event they sought while continuing their legacy and stewardship to ensure the long-term viability of the community.
The transaction exemplifies the greatness that can be accomplished when all sectors and industries come together. Rather than selling the community to a market-rate buyer and ultimately pricing seniors out of their homes, CPP stepped in with one of its trademark deals, bringing local, state, and federal resources together. The project cost approximately $32M with $7M in renovations. CPP obtained financing through layering additional leverage by maximizing the portion of the property covered by a Section 8 contract from the U.S. Department of Housing and Urban Development, securing tax credits from the California Tax Credit Allocation Committee, and additional participation from the Housing Authority of the County of Los Angeles, and securing tax-exempt private activity bonds from the California Debt Limit Allocation Committee.
CPP also brought in nonprofit Foundation for Affordable Housing as a service provider of free social services which include Adult Educational Classes (computer classes, financial literacy, health and safety) and group programs such as adult coloring, arts and crafts, yoga, budget-friendly cooking, and bingo.
Through CPP’s efforts, the residents of Bellflower Friendship Manor kept their homes at an affordable level for the next 55 years, plus they received major structural and aesthetic improvements to their building. CPP teamed up with L+M Development Partners to buy the aging apartment building, which was built in 1973, from the nonprofit Bellflower Friendship Church and turned it into a modern facility while also providing seniors with life skills that meet their specific needs.
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