Canoga Park Apartments is a relatively unique property for CPP to acquire due to its small size. With only 14 units, it faced financing challenges due to the economies of scale: operational expenses and the renovation costs of the building (HVAC, water heaters, electrical, cabinetry, flooring, painting, seismic upgrades, ADA upgrades, etc.) needed to be spread out over a smaller number of apartments. Because of the size, this was a renovation that was overlooked by many developers. But it has always been CPP’s mission to preserve units that are set to lose their affordability in high-need neighborhoods.
Through hard-earned experience, CPP’s development team found a financeable path forward on Canoga Park Apartments by securing Federal and California Low-Income Housing Tax Credits (LIHTCs). Other cost-saving efficiencies were found in combining the management of the development with another relatively small property nearby that was overseen by the same management company, with the goal of sharing staff efficiently between the several sites, leading to smoother operations. Additionally, CPP’s team made sure that longevity was a core tenet of its design philosophy, making property improvements in such a way that ensures updates will last for the long-term instead of just addressing immediate needs.
Preserving the 14 units at Canoga Park Apartments benefitted the local community immensely and helped CPP to further its mission of affordable housing preservation. On the affordability side, CPP was able to deepen the affordability of the units past the minimum LIHTC qualification standards (with two units restricted to 30% of AMI, three restricted to 40%, and, nine units for 50% of AMI) while extending the affordability by 55 years. CPP also achieved more than the minimum 10% improvement in energy efficiency by replacing all windows, and installing new hot water heaters, Energy Star appliances and high efficiency lighting. The team also chose environmentally sustainable flooring in all units and common areas to meet the TCAC standards selected in the application.
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