SAN DIEGO — Hunt Capital Partners, in collaboration with CRP Affordable Housing and Community Development LLC and its affiliate Castellan Holdings LLC, has arranged $5.6 million in Low-Income Housing Tax Credit (LIHTC) equity financing for St. Stephen’s Retirement Center.
Located in San Diego, St. Stephen’s Retirement Center is the acquisition and rehabilitation of 60 affordable housing units for seniors. The development will provide a variety of supportive services. As of the closing date of May 12, 2021, this transaction was the first development in California and the fifth in the United States to convert affordable housing supported by Section 202 Project Rental Assistance Contracts (PRAC) to Section 8 Project-Based Rental Assistance (PBRA) contracts under the Second Component of the Rental Assistance Demonstration program.
Situated on a 1.3-acre site, St. Stephen’s Retirement Center is a four-story apartment complex that was originally built in 1993 and formerly known as Lazzell Residence. With Hunt Capital Partners’ investment and additional financing, St. Stephen’s Retirement Center will offer 15 studio and 44 one-bedroom newly updated units that will include accessibility upgrades.
Apartments will be restricted to family households earning up to 50 percent of area median income (AMI). Property exterior and site improvements will be made over the next 12 months.
Other partners on the project include California Municipal Finance Authority, Jones Hall, MirKa Investments LLC, St. Stephen’s Retirement Center Inc., Hobson Bernardino, Nixon Peabody LLP, Citi Community Capital, Fisher Broyles LLP, Norris George & Ostrow PLLC, Hunt Capital Partners, Elkins Kalt Weintraub Reuben Gartside LLP, First American, Ironcore Construction, Hedenkamp Architecture and Planning and Hallmark Asset Management.
The total development cost will be $18.4 million. The acquisition and rehabilitation will be financed with 4 percent LIHTC equity; tax-exempt volume-cap bonds issued by the California Municipal Finance Authority and funded by Citi Community Capital; and a seller loan. Hunt Capital Partners syndicated the federal tax credits through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 41.