Congratulations to Resources for Community Development on the financial closing of 355 Sango Court in Milpitas and Burbank Housing Development Corporation for the acquisition of Windwood Apartments in Cotati.
Together, these developments will preserve and create 129 affordable homes in California's Santa Clara and Sonoma counties, which include 51 apartments set aside for households that have experienced homelessness.
355 Sango Court in Milpitas
Once completed, this development will provide 101 affordable homes, including 51 homes set aside for households that have experienced homelessness. An extensive supportive services program will be offered for all residents of the building.
Sango Court is near the newly opened Milpitas Transit Center, which offers access to multiple bus lines and newly extended BART and Valley Transit Authority light rail lines. The property is located in a rapidly transitioning area, with many new rental and for-sale housing developments planned, in construction, or recently completed.
Financing consists of $40.4 million in construction bonds provided by Chase and the California Municipal Finance Authority, a $3.1 million construction loan from Chase and a $7.7 million permanent loan from the Housing Trust of Silicon Valley.
Other financing has been provided by the California Department of Housing and Community Development through its Multifamily Housing Program and HOME program, Santa Clara County, and the City of Milpitas. Enterprise is proudly investing $37.2 million in equity to support this development.
Windwood Apartments in Cotati
This acquisition preserves a 28-unit, 100 percent project-based Section 8 community in the heart of Sonoma County, with local services nearby that include bus and regional rail transit (SMART train); shops and restaurants; as well as services including a grocery store, post office and health club within one block of the property.
Burbank’s established local presence and nonprofit status have positioned it to qualify for a local tax exemption to successfully compete with market-rate buyers who seek to reposition properties with aggressive value-add strategies.
Burbank’s immediate plans include a modest renovation of the property, and the long-term plan is to renew the Section 8 contract alongside a potential tax credit syndication in 7-10 years. The property will also implement Enterprise’s Health Action Plan, an innovative process to create affordable housing that takes into account the health needs of all residents.
Burbank assumed the existing, newly closed, $4.5 million HUD loan, the city of Cotati made a $250,000 grant to support the acquisition, and Enterprise invested $4.2 million in equity through the Housing for Health Fund, an $85 million collaboration among Enterprise, Kaiser Permanente and JPMorgan Chase.
