Senior Housing Developer Returns Funds to City
- Dec 16, 2011
Rancho Palos Verdes, Calif.—In an unusual event in multifamily development, or real estate development for that matter, AMCAL Multi-Housing Inc. recently returned about $519,450 to the city of Rancho Palos Verdes, Calif., after the completion of its Mirandela Senior Housing project. The funding had not been needed for the project, which was completed in Dec. 2010, due to cost savings in its development, according to AMCAL.
The 34-unit housing development was financed with an allocation of $7.27 million in 9 percent Low-Income Housing Tax Credits in 2009, and city of Rancho Palos Verdes RDA funds, which allowed for significant tax credits from the state. The cost to build the property totaled about $12.9 million.
Mirandela is the first affordable community in Rancho Palos Verdes, open to seniors who earn between 30 percent and 50 percent of area median income. The city determined a few years ago that there was the need for such a property in the area, since about a quarter of its population is 55 years and older, with a good number of them in situations in which they were paying more for housing than they could afford.
The Mediterranean-style development is located on a hillside of 2.9 acres and consists of one- and two-bedroom units. Amenities include a barbecue and seating area with views of the Los Angeles Basin, and 1,400-square-foot community clubhouse with a computer lab and media room. The property is also located near PVPTA and MTA bus stops.
Mirandela residents have access at no charge to a variety of services from LifeSteps, a nonprofit provider of social services for residents of work force housing in California. These include personal finance classes, computer training and wellness activities.
According to Arjun Nagarkatti, president of AMCAL, affordable multifamily development will be more difficult in the coming years. “However, I’m optimistic that the industry—as resilient as it is—will soon find a combination of methods to continue to build projects, such as finding new funding sources, the revision of regulations to make it less onerous and costly, and finding ways to be more efficient in the use of funds,” Nagarkatti tells MHN.