For Economic Development Committee January 30, 2025
TO: Honorable Economic Development Committee Members
APPROVAL: Colby Cataldi, Director of Community Development
FROM: Paul Guerrero, Economic Development Manager
Title
Rialto Housing Authority Loan Modification for National CORE Citrus Grove Renovation Project
Body
BACKGROUND
1432 North Willow Drive - Citrus Grove Apartments (formerly known as Willow-Winchester Condominiums)
In 2005, the Rialto Housing Authority (RHA) entered into an Affordable Housing Agreement with the Southern California Housing Development Corporation to acquire, renovate, and convert a 152-unit condominium complex into affordable rental units. The property is located on Winchester Drive, Clifford Street, and Millard Avenue, west of Willow Avenue. The appropriated funds for the project were $18,322,000 at a three percent (3%) interest rate. Under the agreement, the developer committed to leasing fifty percent (50%) of the units to very low-income households and the remaining to lower-income households, all at affordable rent levels. The affordability period was set at fifty-five (55) years from the date the Certificate of Completion was issued.
ANALYSIS/DISCUSSION
Over fifteen (15) years have passed since the last renovation of Citrus Grove, and the property now requires significant repairs due to aging infrastructure and deferred maintenance. The cost of these repairs exceeds the property's operational cash flow.
In 2023, National CORE applied for four percent (4%) credits from the California Tax Credit Allocation Committee to fund a complete rehabilitation, estimated at approximately $70,000 per unit for a total estimated project cost of $11,300,000. On December 6, 2023, National CORE was awarded the funding. The deadline date for all document submittal is March 12, 2025. The planned upgrades include new ADA-compliant units and path of travel, replacement of appliances and HVAC equipment, energy efficiency improvements, stairs safe...
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