Affirmed Housing Group’s Affordable TOD Awarded LIHTC
- Aug 12, 2013
Vista, Calif.—The California Tax Credit Allocation Committee has awarded Affirmed Housing Group a 9 percent low income housing tax credit (LIHTC) for its new Paseo Pointe development in Vista, which will be in northwestern San Diego County. The affordable multifamily development is scheduled to begin construction in December.
The 69-unit project will feature 5,000 square feet of retail space, and an outdoor plaza and park for residents and the public, dedicated to Vietnam War veterans. The large-family affordable housing community will include one-, two- and three-bedroom units, a sizable community room, a small library for residents, play areas for children, and an outdoor barbecue area.
The development also counts as transit-oriented. It will have bike storage for short commutes, is within walking distance of the Vista Transit Center, a Sprinter station, and is adjacent to the Vista Village Shopping Center. This part of Vista is undergoing significant redevelopment, which includes the city’s plans for the realignment of South Santa Fe Ave. fronting Paseo Pointe.
The California Tax Credit Allocation Committee (TCAC) administers two low-income housing tax credit programs, one federal and one state, both of which are authorized to encourage private investment in affordable rental housing for households meeting certain income requirements. The 9 percent credit is part of the federal program, and currently each state has an annual housing credit ceiling of $2.20 per capita for 9 percent LIHTC.
Still, developing this kind of affordable housing will only be more difficult in the years ahead, San Diego-based Affirmed Housing Group president and CEO James Silverwood tells MHN. “The reductions to the HUD budget, specifically CDBG and HOME will continue to negatively impact the production of affordable housing throughout the country,” he asserts.
“Couple those reductions with the 2012 demise of the RDA [redevelopment authorities] here in California and it ultimately means that federal and state legislators have created significant roadblocks to the production of much needed housing for lower income seniors, veterans, and families,” Silverwood adds. In 2011, the California legislature abolished about 600 redevelopment authorities in the state as of early 2012. The agencies previously used a portion of property tax money to partner with developers to encourage development in blighted areas.