Preservation Partners Development

Our Mission

Preservation Partners Development (PPD) acquires, rehabilitates and permanently preserves “at-risk” affordable housing resources which were originally developed under U.S. Department of Housing and Urban Development (HUD) financing and direct rental subsidy programs. Our objective is to provide long term, secure housing communities, and in partnership with affiliated nonprofit corporations, provide supportive social services focused on the most basic needs of very low income families and seniors.

Subsidized Housing Programs

HUD and state housing finance agencies have subsidized more than 1.7 million rental housing units since the late 1950’s, providing affordable housing for over 4 million residents.  Income and rent restrictions on the majority of these housing units will expire between now and 2013, leaving very low income residents exposed to the possibility of conversion of their properties to the unsubsidized market.  These rental properties are privately owned and managed. They are not physically distinguishable from “market rate” properties in a given area.  Many of these properties were constructed under HUD interest reduction or subsidy programs (such as Section 221(d)3 BMIR and Section 236).  They provide low interest rate loans in consideration for reduced rents and household income restrictions.  Other programs, such as Section 8, provide rental assistance directly to residents.  Households pay 30 % of their adjusted income for their portion of the monthly rent, with the balance of the rent paid to the owner by HUD.

Typical families have one, two or three wage earners, and average 20% to 30% of median household income for a given area.  The overwhelming majority of these families cannot afford to pay even the “affordable” rents set at 50% and 60% of median income under the low income housing tax credit program; and other affordable housing resources are extremely limited in major metropolitan areas.  Housing subsidies enable families to bring up their children in decent, safe surroundings, and to avoid a degrading dependence on direct forms of welfare and public assistance.

Typical elderly residents are widows or widowers living on $600.00 to $1,100.00 a month in social security income.  Housing subsidies allow them to live with dignity in well maintained and comfortable apartment homes, and with age and income appropriate supportive social services.

Our Existing Communities

Name Location Units Bond Allocation Lender/Enhancer Tax Credits
Springdale West Long Beach, CA 410 $17,550,000 TRI/HUD $6,878,100
Plum Tree Gilroy, CA 70 $5,650,000 CalHFA $2,047,500
Rowland Heights Rowland Hts, CA 144 $8,790,000 WAMU/FHLB $3,327,700
Royal Hills Renton, WA 284 (9% Tax Credits) WAMU $6,000,000
Hope Village Glen Allen, VA 100 $4,500,000 B of A/FNMA $1,450,000
Trailside Everett, WA 250 $10,620,000 US Bank $5,461,600
Birchcrest Downey, CA 64 $2,455,000 US Bank $1,257,400
LA Pro I 124   Union Bank, N.A $5610313
LA Pro II 123 9% LIHTC Union Bank, N.A $16750960
La Puente Park La Puente, CA 132 $6,776,000 US Bank $3,816,000
Lake Merritt Oakland, CA 55 $3,702,000 US Bank $1,772,000
Cienega Gardens Covina, CA 180 $11,760,000 WAMU/FHLB $4,548,000
Seminole Palm Springs, CA 60 $3,385,000 WAMU/FHLB $939,000
Corona Park Corona, CA 160 $10,250,000 WAMU $5,110,733
Sky Parkway Sacramento, CA 59 $1,965,000 WAMU $996,373
Citrus Grove Fontana, CA 51 $3,790,000 CalHFA $2,651,496
Royals I & II Los Angeles, CA 115 (9% Tax Credits) WAMU $8,200,000
Second Avenue Los Angeles, CA 20 (9% Tax Credits) US Bank $2,400,000
St Andrews Los Angeles, CA 43 (9% Tax Credits) US Bank $5,300,000
Panorama View Van Nuys, CA 87 (9% Tax Credits) US Bank $8,850,000
Belage Manor Anaheim CA 180 $22,350,000 Union Bank $10,350,000
Two Worlds Los Angeles, CA 96 (9% Tax Credits) Wachovia $13,900,000
Columbus Square Los Angeles, CA 64 $6,250,000 Union Bank $3,770,600
Jackson Hills 86 ARRA 1602 PNC Bank (FHA) $8148080
Pioneer Village 85 ARRA 1602 Enterprise (FHA) $7444147
Wadsworth Park 21 CBRE (FHA)   $3336690
Banning Villa 90 $10,100,000 Greystone (FHA) $6802990
Norwalk Towers 185 9% LIHTC Greystone (FHA) $20508370
Casa De Cortez 32 $3200000 Red capital (FHA) $1884660
Total 2624     $160,587,112

Strategic Partnerships

Our transactions have been financed by tailoring unique and complex structures that include tax exempt bonds, the sale of low income housing 4% or 9% tax credits, and gap financings from affordable housing loan/equity providers such as state and local governments. The bonds have either been directly purchased by financial institutions, or credit enhanced by government related entities or financial institutions rated by Standard & Poor’s or Moody’s, and sold in the public markets.  The low income housing tax credits have been syndicated to investors to provide the funds needed for acquisition and rehabilitation  When needed, gap financings have been structured as long term debt or surplus cash notes, and have been provided by various affordable housing equity/loan providers that include cities, counties and state agencies.  In order to meet the varying needs of our communities we have formed strategic relationships or partnerships with the following entities:

Issuers California Statewide Communities Development Authority (CSCDA), CalHFA, City of Hayward, Housing Authority of the County of Los Angeles, Housing Authority of the City of Sacramento, the Suffolk Redevelopment and Housing Authority, the Washington State Housing Finance Commission and the Housing Authority of the City of Anaheim.
Bond Underwriters D.A Davidson, BancAmerica Securities, Miller & Schroeder.
Credit Enhancers HUD, CalHFA, Comerica Bank, Fannie Mae, Federal Home Loan Bank, US Bank, Washington Mutual Bank; Union Bank.
Tax Credit Investors Edison Capital, Merritt Community Capital Corporation, MMA Financial, Paramount Group, The Richman Group, US Affordable Housing; Us Bank CDA, Union Bank of California.
Affordable Housing Equity Providers Century Housing Corporation, City of Covina, City of Fontana, City of Oakland, City of Hayward, County of Sacramento, State of Washington; City of Los Angeles
Social Service Providers Cornucopia Services, Housing With Heart
General Contractor ICON Builders
Property Managers PPMG, Goldrich & Kest, John Stewart Co., TOPA.
Tax Credit Counsel Carle, Mackie, Power & Ross
HUD Counsel Levy, Levy & Levy
Accountant/Auditor Dauby O’Connor & Zaleski LLC

ICON Builders

PPD has worked exclusively with ICON Builders, a general contractor with over 20 years of experience in California.  Icon specializes in the construction and renovation of multi-family apartment properties and provides 100% performance and payment bonds, if required by lenders..  Icon has successfully completed the scope of work on every property we have acquired – on schedule and within budget.  Icon believes in a "hands-on" approach, and as such is involved early in the process as part of the development team from a project's inception to its completion.  They work closely with residents to minimize the time and inconvenience of  temporary  relocation required during rehabilitation.  They also sponsor programs such as "Kids at Risk Mentoring Program" and make donations to enhance the lives of residents at their properties.  Icon won the "Affordable Housing Project of the Year" award given by the Southern California Association of Non-Profit Housing for its work on the Hollywood El Centro project.