Harbor City affordable housing project awaits approval from state.Developers may commence construction on an innovative, "affordable" Harbor City-area multifamily residential project as early as November -- if they receive an anticipated nod from the state Treasurer's Office's Tax Credit Allocation Committee next week. The planned $90 million Normont Terrace redevelopment project, near the intersection of Normandie Avenue and Pacific Coast Highway Pacific Coast Highway may refer to:
tr.v. sub·si·dized, sub·si·diz·ing, sub·si·diz·es 1. To assist or support with a subsidy. 2. To secure the assistance of by granting a subsidy. apartments interspersed with an equal number of "market-rate" for-sale condominium condominium In modern property law, individual ownership of one dwelling unit within a multidwelling building. Unit owners have undivided ownership interest in the land and those portions of the building shared in common. units. Each "cluster" of attached units would be either all-rental or all-condo, but each of the five planned Normont neighborhoods would include an equal mix of both rental and for-sale clusters. Design and construction quality would be consistent throughout the 800 units planned for the gate-guarded community, the developers emphasized. The project would replace an existing development owned by the City of Los Angeles
While Normont Terrace's rental and for-sale components would rise simultaneously, separate teams would finance and develop those components independently, explained Bill Witte, a principal in Normont's managing general partner, Newport Beach-based Related Cos. of California. Related and a residents' council would be co-general partners in the rental portion, while Aliso Viejo-based homebuilder Kathryn G. Thompson Co. and Related would be co-general partners in the for-sale component -- and would oversee construction of the entire project. The results of Tax Credit Allocation Committee's June 20 meeting are key to getting the project off the ground, Witte noted, because his team hopes to finance much of the rental component's projected $45 million development costs by raising $25 million in equity through corporate investments in affordable-housing tax credits. The competition for the semi-annual tax-credit allocations is fierce, but Witte said he's optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that the committee -- scheduled to meet again in August -- will allocate that amount to Normont, which "scores high" in all judging criteria. The project is thought to be the largest California development qualifying under the federal Community Reinvestment Act Community Reinvestment Act (CRA) Enacted by Congress in 1977, the CRA encourages banks to help meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes, while maintaining safe and sound operations. , which encourages lending institutions Noun 1. lending institution - a financial institution that makes loans financial institution, financial organisation, financial organization - an institution (public or private) that collects funds (from the public or other institutions) and invests them in to reinvest re·in·vest tr.v. re·in·vest·ed, re·in·vest·ing, re·in·vests To invest (capital or earnings) again, especially to invest (income from securities or funds) in additional shares. deposits into qualified projects within their respective communities, Witte noted. Normont Terrace has a "disposition and development agreement" in place with L.A.'s Housing Authority, and its Environmental Impact Report has been certified, he added. Witte also noted that AFL-CIO AFL-CIO: see American Federation of Labor and Congress of Industrial Organizations. AFL-CIO in full American Federation of Labor-Congress of Industrial Organizations U.S. Housing Investment Trust, affiliated with the big trade union organization's pension fund, has committed to providing HUD-guaranteed construction and permanent financing Permanent financing Long-term financing using either debt or equity. permanent financing The long-term financing that supports a long-term asset. for the 400 affordable units. The Section 8-qualified residents would participate in the construction and management of Normont Terrace's rental component, Witte noted. The Normont Terrace Coordinating Council, which represents these residents, would be a partner in the rental element along with a partnership of which Related California is the sole general partner, he added. Current residents would relocate temporarily for 18 to 24 months as the developers replace existing apartments with each new Normont Terrace phase, Witte explained. The initial phase would likely include 30 to 40 units, he added. L.A.'s Housing Authority awarded Related an exclusive right to negotiate a Normont Terrace disposition and development agreement in late 1989. The agency, Related and the Coordinating Council executed the agreement in September 1992, six months before Related and the Thompson firm signed their co-venture agreement pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to the for-sale portion and overall construction management responsibilities. Thompson probably won't finalize construction financing and pricing for the initial for-sale units until the construction schedule is solidified, the firm's namesake principal noted. The veteran Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, home-builder added that Normont Terrace would be among the nation's first major endeavors to mix Section 8 renters with market-rate home buyers. But she projected that the gate-guarded development's extensive recreational and community center facilities -- including child care -- would give Normont Terrace a substantial marketing advantage over competing projects in the area. Related Cos. of California is an affiliate of New York's Related Cos., the nation's largest developer and syndicator of low-income, tax-credit assisted housing. The California division also has projects under development near downtown L.A. and in La Mirada La Mirada (lä mĭrä`də), city (1990 pop. 40,452), Los Angeles co., S Calif.; inc. 1960. La Mirada derives from the Spanish for "the view," referring to the panoramic view of the surrounding valleys from atop the city's hills. . Kathryn G. Thompson Co. has developed more than 6,000 homes during its quarter-century of operation. |
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