The Edgewater Isle senior apartments in San Mateo earned a tax credit from the state for a major facelift that will temporarily displace the residents who live in the 92-unit complex.
California State Treasurer John Chiang announced last week that tax credits were awarded to 16 California projects, three in San Mateo County, to construct or preserve more than 1,800 affordable housing units across the state.
Tax credits were also awarded to the Ocean View Senior Apartments in Pacifica and 6800 Mission Family Housing Apartments in Daly City, according to Chiang’s office.
The San Mateo City Council approved a deal in January with HIP Housing to rehabilitate the units, built in 1985, to finance the deal.
The deal assures that the units will remain affordable for at least another 23 years and, when HIP refinances a loan on the property, it is expected to leverage another $2.5 million in cash for the construction of more affordable housing units in the future.
Capital improvements for the project are expected to cost about $8.3 million. The Edgewater Isle complex at 1510 Marina Vista needs major renovations, according to city officials.
“These are members of the community who have given a lot to the city. Without this sort of housing, they couldn’t remain in the community,” San Mateo Councilman David Lim said about the individuals who live there.
The city will actually earn about $35,000 a year for the next five years under the deal.
The apartment complex was constructed under inclusionary rules when a developer constructed a 416-unit market rate condominium complex in the former Shoreline Redevelopment Area.
The state’s affordable housing credits, valued at $319 million, provide a 4 percent tax incentive to potential investors who may help to finance the housing developments.
The $295 million of tax-exempt bonds awarded will allow affordable housing construction to be financed at below-market interest rates.
Currently, more than 34 percent of working renters pay more than 50 percent of their income toward housing, and the State Department of Housing and Community Development estimates that California needs to build 220,000 new homes a year to keep up with population growth, according to Chiang’s Office.
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