Governor Gavin Newsom Announces $159.9 Million Investment to Prevent 638 Homes from Losing Affordability Restrictions

Portfolio Reinvestment Program, Launched in 2022 to Preserve Affordable Homes Statewide, has Already Protected 1,364 Homes
July 7, 2023
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Why it matters: In the Statewide Housing Plan we are guided by three principles to protect our most vulnerable residents, produce more housing faster, and preserve existing housing. Today, our commitment to preservation is supported through this historic investment of $159.9 million.

What the Governor said: “As California faces a critical housing shortage, it is vital that we use every tool in our toolbox to build more housing faster and preserve affordability for individuals and families struggling with the high cost of rent. Every Californian deserves a place to call home, and we are aggressively working to secure more affordable housing throughout the state.”  

In the ongoing effort to preserve affordable homes for lower-income Californians priced out of the rental market, Governor Newsom today announced $159.9 million in awards from the new Portfolio Reinvestment Program (PRP) administered by the California Department of Housing and Community Development (HCD). These awards keep an additional 638 homes in the pool of available affordable homes for up to 55 years.

Map of California highlighting counties supported by Portfolio Reinvestment program. Text reads: 159.9 million in portfolio reinvestment program awards will keep 638 homes restricted as affordable for up to 55 years. Sonoma county 6 homes; Sacramento county 90 homes; San Joaquin county 24 homes; San Francisco County 172 homes; Alameda County 45 homes; Santa Cruz County 76 homes; Santa Clara County 21 homes; Kern County 16 homes; Los Angeles County 188 homes.

Since its launch in 2022, the PRP has awarded nearly $315.3 million to preserve 1,364 affordable homes, assuring housing for nearly 27,000 people over the life of the developments’ affordability compacts. That’s over 1,300 homes that would have been lost to market rate rental or redevelopment.

Preserving existing affordable homes is part of the multi-pronged strategy laid out in the California’ Statewide Housing Plan, which calls for 2.5 million new homes by 2030, with at least one million of those homes being affordable to Californians at lower income levels.

The PRP preserves existing affordable housing projects funded by the HCD by extending and restructuring affordability agreements; extending loan maturity dates; providing new low-interest, long-term loans for rehabilitation; and providing forgivable loans to capitalize short-term operating subsidies.

“As we work to expand the construction of new housing, it is critical that we also preserve, invest in, and maintain existing affordable housing in communities – it prevents displacement, is cost efficient, and improves neighborhoods,” said Business, Consumer Services, and Housing Secretary Lourdes Castro Ramirez. “These awards announced today by Governor Newsom will allow affordable housing community developers to improve the quality of living and extend the life of these buildings for many more years by making critical repairs such as fire and life safety improvements to common areas and new roof installation.”

"Keeping safe, quality, affordable homes from reverting to market rate is a key component of any strategy to address the crisis of homelessness our state is facing,” said HCD Director Gustavo Velasquez. “These strategic reinvestments – that ensure HCD-funded properties remain livable and affordable for the foreseeable future – will offer tens of thousands of Californians the housing stability and supportive services they need to be successful in a life lived off the street.”

HCD offered $332.5 million over the counter to affordable housing developers in the first round and received 34 applications totaling more than $350 million. Approximately $17 million remaining from the first offering of PRP funds will be added to the second round of $100 million funding approved in the recent budget for approximately $117 million. The notice of funding availability is anticipated in early fall of this year.

The awards announced today include the following:

  • Mission Housing Development Corporation received $12,950,076 to preserve 49 units at Dunleavy Plaza in the County of San Francisco. Dunleavy Plaza was built in 1985 and is located in a densely populated area of San Francisco’s Mission District. PRP funds will be used to address critical repairs such as replacing the fire alarm and sprinkler head system, replacing insulation to increase energy efficiency, and roof replacement. The funds will also be used for remediation of water damage.
  • Abode Communities received $26,248,920 to preserve 144 units at Centennial Place in the County of Los Angeles. Centennial Place was built in 1910, originally serving as a YMCA. It now houses people who are formerly homeless or at risk for homelessness with very low incomes. The rehabilitation of Centennial Place will consist of elevator refurbishment, repairs to the exterior and common areas, a new roof, and fire alarm replacement.
  • Eden Housing, Inc., received $12,075,450 to preserve 45 units at Sparks Way Commons in the County of Alameda, built in 1985. They also received $5,719,492 to preserve 21 units at Hope Villa Esperanza, which was built in 1999 in the County of Santa Clara. A third award of $19,421,950 will preserve 76 units at the Vista Verde Apartments in Santa Cruz County. All three projects serve low-income households and will use these rehab funds to improve living conditions for tenants. The projects will conduct in-unit repairs including new cabinets, sinks, ADA showers, and energy-efficient appliances. They will also replace the windows and do repairs to the exterior including a new roof and paint.  
  • 5169 Hollywood Boulevard received $11,217,661 to preserve 44 units at Kingswood Apartments in the County of Los Angeles. Kingswood Apartments was built in 1995 and has not had any major renovations to date. Kingswood will use the PRP funds to replace the flooring, plumbing, doors, windows, and paint. The funds also will be used to remodel the kitchens in each unit, including new appliances.
  • Golden Empire Affordable Housing, Inc., received $2,996,989 to preserve 16 units at Park Real Apartments in the County of Kern. Park Real was built in 1973 and is in need of rehab work. Park Real will use the PRP funds to install new plumbing throughout the site, as well as to repair the damaged roof.
  • Community Support Network received $396,103 to preserve 6 units at DeTurk, a group home in Sonoma County. DeTurk was built in 1958 and serves a special needs population for disabled households. DeTurk will use the PRP funds to conduct full kitchen and bath remodels, install new plumbing, and repair the subfloor. 
  • Lutheran Social Services of Northern California received a total award amount of $4,520,577 to aid in rehabilitation of three projects all located in the County of San Joaquin. All three projects will serve a special-needs population of homeless youth with income levels at 30% AMI and below. The first property is Coral, which was built in 1975 and received $1,198,186 to preserve 6 units. Second is Edan, which was built in 1965 and received $1,543,956 to preserve 8 units. The final project is Hunter, which received $1,778,435 to preserve 10 units. All three projects will have complete rehabilitation of all units including asbestos abatement, remediation of water damage, new windows, doors, countertops, cabinets, flooring, appliances, paint, and bath and plumbing fixtures.
  • Chinatown Community Development Center, Inc., received $9,821,259 to preserve 82 units at Clayton Hotel and $9,976,420 to preserve 41 units at St. Claire, both in the City of San Francisco. Both buildings were constructed in the early 1900s and are in need of major repairs. St. Claire will install an ADA lift platform at the front entry; it will also repair the current elevator to better assist its elderly tenants and those with disabilities. Clayton will replace the building’s electrical, roof, and windows, and complete ADA upgrades to the units. Both projects serve extremely low-income households and will preserve affordability in an area of critical need.
  • The John Stewart Company received $44,621,770 to preserve 90 units at The Sequoia in the City of Sacramento. The Sequoia was built in 1906 and is currently an HCD-owned project. The funds will be used to perform a gut rehab of the building. The Sequoia will be stripped down to the studs, and the rotted frame will be replaced. The funds will replace the roof, windows, electrical and wiring throughout the building, and new plumbing and fixtures. The ground floor will have a full demo to add 4 ADA studios. Each unit will have a new cooling and heating element added, new door, new walls and paint, as well as replacement of the kitchenettes with new cabinets, sinks, and under-counter refrigerators.

For additional information on PRP, please visit Portfolio Reinvestment Program.

Contact Details:

HCD Press Office