CPP (Community Preservation Partners), a mission-driven affordable housing preservation developer, and WNC & Associates (WNC), a family-owned business known as both a pioneer and leader in the affordable housing industry, have announced the acquisition and planned renovation of Euclid Villas in El Centro, Calif.. The acquisition is in partnership with Bettencourt Properties, Inc. and The Beneficial Housing Foundation.
Built in 1982, Euclid Villas is located at 1735 W. Euclid Ave. A, and is a 42-unit family property Comprised of five two-story walk-up buildings, the property offers two- and three-bedroom layouts. CPP’s total development investment is approximately $14,850,000, which includes the purchase price of $7,250,000 and an estimated per unit renovation cost of $81,200.
“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. “CPP is proud to partner with Bettencourt Properties, Inc. and The Beneficial Housing Foundation to revitalize Euclid Villas and ensure that it remains affordable for current and future residents.”
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.
“WNC is proud to partner with CPP on another affordable housing project,” said Anil Advani, Executive Vice President of Originations and Finance at WNC. “We look forward to seeing the positive impact that these homes have in the community.”
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.
“When addressing affordable housing needs in communities, it is important to look beyond the physical needs of the property. The upgrades at Euclid Villas are aimed at addressing comprehensive resident needs, including community-making and support services,” said Ron Bettencourt, President at Bettencourt Properties, Inc.
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.
“Shelter is a basic need that is becoming increasingly unaffordable in California,” said Kimberley McClintock, CEO at The Beneficial Housing Foundation. “Through the preservation of Euclid Villas, we will provide much needed affordable housing in El Centro.”
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.
