Affordable Housing Preservation of Smaller-Scale Properties in California

Many low-income families are at risk of displacement due to market forces affecting Class C multifamily properties. The Housing Trust Placer, Inc. presents an opportunity for California counties to preserve naturally-occurring affordable housing in smaller-scale properties by addressing challenges in quick acquisitions and creating a Preservation Fund. Examples of properties in Roseville and Auburn illustrate the potential for creating permanently affordable housing. Contact Dan Heldridge at Housing Trust Placer for more information.

• Affordable Housing
• Property Preservation
• California Counties
• Housing Trust
• Displacement

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Uploaded on Mar 01, 2025 | 0 Views

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1. AFFORDABLE HOUSING PRESERVATION OF SMALLER-SCALE PROPERTIES An Opportunity for California Counties Housing Trust Placer, Inc.

2. At-Risk Families Many low-income families live amongst us today in Class C multifamily properties These properties are known as naturally-occurring affordable housing ( NOAH ) In a robust real estate market, owners of NOAH properties have an incentive to: o Install cosmetic upgrades (vinyl floors, granite countertops, refinished cabinets, etc.), and o Sell to the highest bidder under the prospect of dramatic rent increases Families in these building are at risk of displacement Institutional investors are aware of these opportunities and are actively seeking preservation opportunities However, smaller buildings (9 to 40 units) are generally not on the radar screen of big investors These buildings present an economical and relatively fast way to create permanently affordable housing

3. Challenges for County Involvement Often we do not learn of a NOAH property until it becomes an active listing in the open market Once an opportunity is identified, there is very little time to secure approvals and arrange soft debt to help with acquisition How do we prepare in advance for a quick acquisition? One solution is to create a Preservation Fund that can quickly fund acquisitions that meet specific underwriting parameters (e.g., price per unit, limit on deferred maintenance / rehab costs, location, tenant incomes, etc.)

4. Continental Arms Roseville, CA Insignificant amount of rehab required 39 Units Acquisition Price: $217,949 per unit (in 2021)

5. 150 Foresthill Ave Auburn, CA Current Listing Substantial deferred maintenance? Significant rehab required? 9 Units Acquisition Price: $205,556 per unit

6. Contact Info: Dan Heldridge Housing Trust Placer dan@housingtrustplacer.org Tel: 917-826-6774