Monarch Private Capital Finances Affordable Housing Development in California
The new development adds needed housing, jobs, and income in the San Diego area
Monarch Private Capital, a nationally recognized tax-advantaged investment firm that develops, finances, and manages a diversified portfolio of projects that generate both federal and state tax credits, is pleased to announce the financial closing of low-income housing tax credit equity (LIHTC) for a 50-million-dollar affordable housing development called Valencia Pointe in San Diego, California.
Located at 5930 Division Street in San Diego, California, Valencia Pointe will consist of 102 multifamily apartment units with affordable rents in place for households earning 40 to 80 percent of the area median income (AMI). Plans include 58 two-bedroom and 44 three-bedroom units in a single residential building. The development is expected to be available for rent in the second quarter of 2022. To bring the project to fruition, Monarch partnered with CRP Affordable Housing & Community Development, a full-service, vertically integrated real estate firm, and Hunt Capital Partners, a national syndicator of Federal and State Low Income Housing, Historic and Solar Tax Credits.
This new affordable housing development would not be possible without The California Housing Finance Agency and their 2019 preliminary awards to eight mixed-income multifamily housing developments, including Valencia Pointe. The awards come from Senate Bill 2, the Building Homes and Jobs Act, which provides a permanent funding source for affordable housing in California. As the state with the highest percentage of unsheltered homeless in the United States at an astounding 64 percent, this bill addresses a major affordability crisis in the state. The funding goes to existing state programs that provide assistance for emergency housing, multifamily housing, farmworker housing, homeownership for very low and low-income households, and down payment assistance for first-time homebuyers. The eight projects receiving funding for 2019 will create 1,379 homes for low and moderate-income households, 102 of which make up Valencia Pointe.
“Monarch is committed to providing affordable housing in California,” said Brent Barringer, Managing Director of LIHTC at Monarch. “We’re very excited to partner with CRP and Hunt Capital on Valencia Pointe to help satisfy the growing need for quality affordable homes in the San Diego area.”
San Diego, California, is the second-largest city in the state and the eighth largest in the nation, with nearly 1.3 million residents within the city’s limits and over 3 million residents across the county. With 70 miles of breathtaking beaches, the many attractions of the world-famous San Diego Zoo, and various parks boasting unique art and culture installations, San Diego attracts all types of people. As a major tourism spot with a lot to offer, the city is finding a greater need to develop more affordable housing opportunities for its residents.
Not only will the new development address the city’s need for affordable housing, but in the initial year alone, the project is expected to create over 100 direct and indirect jobs and generate nearly $12 million in local income. The economic and social benefits will continue to impact the area in the years to follow.
“At CRP Affordable, we believe all individuals deserve a safe and secure place to live no matter the circumstance,” said Seth Sterneck, Vice President at CRP Affordable Housing & Community Development. “Valencia Pointe will help make this belief a reality, providing 102 families and individuals with new, high-quality affordable homes and an enhanced quality of life.”
About Monarch Private Capital
Monarch Private Capital manages ESG funds that positively impact communities by creating clean power, jobs, and homes. The funds provide predictable returns through the generation of federal and state tax credits. The Company offers innovative tax credit equity investments for affordable housing, historic rehabilitations, renewable energy, film, and other qualified projects. Monarch Private Capital has long-term relationships with institutional and individual investors, developers, and lenders that participate in these types of federal and state programs. Headquartered in Atlanta, Monarch has offices and tax credit professionals located throughout the U.S.
About CRP Affordable Housing & Community Development
CRP Affordable is a full-service, vertically integrated real estate firm with significant experience in multifamily acquisition/rehabilitation, ground-up development and property management. CRP Affordable was founded with the principles of providing quality affordable housing and strengthening communities. The founders of CRP Affordable have owned, operated, developed, and managed over 2,500 rent-restricted units and have significant experience providing housing to at-risk, special needs, seniors, and other vulnerable populations. CRP Affordable has successfully partnered with non-profit, government, and community organizations to support individuals and families in need.
About Hunt Capital Partners
Hunt Capital Partners (HCP) is the tax credit syndication division of Hunt Companies, Inc. (Hunt). HCP specializes in the sponsorship of Federal and State Low-Income Housing, Historic, and Solar Tax Credit Investments funds. Since its inception in 2010, HCP has raised over $2.2 billion in tax credit equity in over 40 proprietary and multi-investor funds. HCP manages almost 800 project partnerships representing over 80,000 homes in 51 states and territories. Founded in 1947, Hunt is a privately held company that invests in businesses focused in the real estate and infrastructure markets. The activities of Hunt’s affiliates and investors include investment management, asset management, property management, development, construction, consulting and advisory. For more information on HCP, please visit www.huntcapitalpartners.com, or for Hunt, please visit www.huntcompanies.com.
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