Located in one of the nation’s most affluent regions, the 200 low-income seniors from the Miracle Terrace Apartments in Anaheim, CA, were at risk of losing their housing and having few affordable alternatives. With the landlord’s HUD subsidies set to expire in 2019, the residents of the property’s 179 units could lose their homes. In a joint venture with Jamboree Housing Corporation, CPP acquired the property and was able to rehabilitate the property and preserve and extend its affordability through a mix of negotiations with the Anaheim Housing Authority and the securing of tax credits in bonds through the state allocating agencies. As a part of this process, there were several hurdles. First, the Housing Authority wanted to move some of its existing vouchers to new construction projects. Additionally, both the city and state outlined several environmental requirements that the property had to comply with moving forward, including drought resistant landscaping, the use of Energy Star appliances, and a 20% overall energy efficiency post-rehabilitation improvement, among others. To further complicate the project, the closing occurred at a time of tax reform and chaos within the credit program’s capital markets, the deal’s primary equity source.
In less than a year, CPP rehabilitated the community, including $7.4 million in renovations and improvements. To address the standards laid out by the city and state, CPP developed a plan to make sure all the requirements were met or exceeded. The team installed a solar thermal PV system, which helped to not only reduce the property’s water heating costs, but also its carbon footprint. CPP also incorporated a variety of low-water usage plants and trees throughout the property’s landscaping and installed smart irrigation systems with timers to maximize irrigation water efficiency. Finally, the project partners were able to negotiate creative terms with lenders and investors to allow the property to grow into and prove out the economic underwriting that would make it feasible.
This project demonstrates how green initiatives and systems can be additive to the economics of an affordable housing deal, helping to make difficult-to-finance projects feasible. The Miracle Terrace renovation not only preserved the much-needed units, but also sustained safe, modernized housing for its senior residents. Since the initial renovation, CPP has continued to implement environmentally- and energy-friendly upgrades at the property, including the installation of 12 solar powered EV charging stations. These stations help to power the property’s two electric ride share vehicles available to residents. Additionally, Miracle Terrace recently partnered with the California Multifamily Energy Savings Program to install multiple energy saving initiatives, including low flow toilets, shower heads, energy efficient lighting, and seven brand new energy saving boilers.
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