Press Release
Contact:
Colleen Mulcahy,
NEF
312-697-2482 or cmulcahy@nefinc.org
NEF Invests $46MM to Preserve Calif. Low-Income Housing
CHICAGO (July 27, 2007)-National Equity Fund, Inc. (NEF) has made its largest-ever single investment in an affordable housing development, closing on a $46 million commitment to support the substantial rehabilitation of Crescent Park Apartments in Richmond, Calif.
Developed by the nonprofit EAH, Inc.-one of the Bay Area's leading affordable housing developers-this 378-unit project will provide quality, affordable housing to families earning 50-60 percent of the local area median income, or approximately $42,000- $50,000 for a family of four. It includes 84 one-bedrooms, 111 two-bedrooms, 134 threebedrooms and 48 four-bedrooms. Rents are expected to range from approximately $785-1450 and are as much as one-third below local market rents. Total cost for this redevelopment effort tops $115 million.
"NEF has been focused on raising capital for low-income housing for 20 years, but never before have we invested this much in a single development," noted Joe Hagan, NEF president and CEO. "We're excited to do this now in large part because of our strong relationship with EAH and its tremendous track record of success in meeting the housing and services needs of low-income populations."
The 24 buildings that comprise Crescent Park were built in 1968 with funding from the Department of Housing and Urban Development. The current rehab effort includes roof and window replacement as needed, installation of photovoltaic panels and energy efficiency features, replacement of wood and stucco to repair damaged buildings, addition of lighting to bolster security, site improvements to mitigate drainage issues, and interior upgrades to units, among other things.
The project's current on-site Multicultural Family Resource Center is also being significantly expanded as part of the rehab. The new 4,400-square-foot facility will offer after-school programs, computer tutoring, literacy and job search programs, and social activities. It will include more community space, offices for the residents council, a new, larger kitchen and administrative space for management.
"This project is important," Mr. Hagan emphasized, noting that it spans 24 acres and extends the project's current Section 8 contract. "We already know there is not enough affordable housing available for all the residents who need it, particularly in high cost markets like the Bay Area," he said, citing a recently released report from Harvard University's Joint Center for Housing Studies.
"With 17 million households severely burdened by housing costs-and millions more in severely inadequate housing or homeless-we can't afford to have even one project like Crescent Park deteriorate or convert to market-rate apartments. We can't build new affordable housing fast enough to meet the need. We have to preserve what we have," he said.
National Equity Fund, Inc. is a national syndicator of federal low-income housing tax credits that has invested more than $5.5 billion in affordable rental housing on behalf of institutional investors. Since its founding in 1987, NEF has partnered with 550 local nonprofit groups and developers to support 1,500 projects that have delivered 80,000 homes to low-income and special needs populations. NEF is an affiliate of Local Initiatives Support Corporation, a New York-based national nonprofit focused on revitalizing distressed and disinvested communities. For more information, visit www.nefinc.org.
EAH, Inc., which is developing Crescent Park, is a nonprofit housing development and
management organization that has been active in California and Hawaii for nearly 40
years. It manages 67 properties and serves more than 15,000 seniors, families,
students, people with disabilities, frail elderly and formerly homeless residents. For more
information, visit www.eah.org.
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