An Eden Housing development in California leverages a hybrid of federal housing tax credits to deliver 90 units for low-income seniors.
Established by citizen activists in 1968, Eden Housing has become one of the most productive affordable housing developers in California with over 11,000 units delivered. In recent years, Eden Housing has partnered with JPMorgan Chase as a lender and thought partner in rethinking how affordable housing projects can be financed—a critical need to overcome the labyrinthian maze that typically comes with a patchwork of grants, tax credits, and fundraising.
Eden Housing’s Pauline Weaver Senior Apartments in Fremont, California features 90 units for those over the age of 62. To qualify, people must make between 30 and 50 percent of Area Median Income.
In a blog post from JPMorgan Chase, it’s explained that the team leveraged a unique, hybrid of 9 percent and 4 percent federal tax credits to make the project viable. This was made possible by a 2017 update in regulations from the California Tax Credit Allocation Committee (CTCAC), which is responsible for running California’s low-income housing tax credit program.
Low-Income Housing Tax Credits (LIHTC) are good for 10 years and help drive private investment in affordable housing by giving a dollar-for-dollar reduction in tax liability. Projects that receive LIHTC are required to maintain their affordability levels for 30 years.
On top of federal credits, California also offers state low-income housing tax credits to help subsidize the cost of new construction in California which historically is two to three times as expensive as other markets.
Learn more about the United States’ Low-Income Housing Tax Credit program from the Local Initiatives Support Corporation.
Highlights from Pauline Weaver Senior Housing:
Eden Housing is structured Pauline Weaver Senior Apartments for those making 30 to 50 percent of Area Median Income.
4 percent and 9 percent housing tax credits were leveraged. Typically, you can only use one or the other.
Housing tax credits are good for 10 years and help drive private investment in affordable housing by giving a dollar-for-dollar reduction in tax liability.
Projects are required to maintain their affordability levels for 30 years.