AMCAL Newsletter

June 2010 AMCAL Times Volume 7 No.2

Royale groundbreaking

WESTMINSTER – AMCAL began construction on its first development in Orange County, the “Royale” family apartments, in February.

The 36-unit apartment is 3 levels of residential over a garage for 90 spaces. It includes 2 courtyards with children’s play areas. Units are reserved for households with 30-60% AMI. The site is located near Hoover Park, Schmitt Elementary School, an OCTA bus line, pharmacies and markets.

Project value is $17,851,000. Union Bank provided the Tax- Credit Equity ($9,498,000), Construction Loan ($10,366,000) and Permanent Loan ($2,595,000).

Royale received a $12,665,000 allocation of 9% federal and state tax credits in 2009, and City of Westminster RDA provided $5,544,000 in funding.

Non-profit partner is Foundation for Affordable Housing (San Juan Capistrano). Withee Malcolm (Torrance) designed the contemporary Spanish/Mediterranean.

Key team members include Mario Turner, Vice President of Development; Colleen Edwards, Project Manager, and John Severino, Construction Manager.

Summer Hill groundbreaking

FRESNO – AMCAL began construction on its fourth development in the San Joaquin Valley, the Summer Hill Place family apartments, in March. Summer Hill in southwest Fresno is giving community leaders high hopes improving the area.

Not only will the apartment become “a new and vibrant focal point for this neighborhood,” said Marlene Murphy, Executive Director of RDA, “it will shore up and increase the demand for retail business in this area.”

Summer Hill is being built in two parcels on a combined 2.9 acres, one at the corner of B and San Benito, and the other on Elm Avenue. The $8,736,000 development will include 50 units. It was funded by a 9% tax credit allocation of $7,328,000 in 2009.

Entitlements included a zone change to R2 High Density. Summer Hill is located near a FAX bus stop, King and Lincoln Elementary Schools, Frank H. Ball Park, Holy Cross Medical Clinic and a grocery market.

Boston Capital funded a construction loan of $4,544,000 and a permanent loan of $1,500,000. Fresno RDA funded $2,000,000. Non-profit partner is Foundation for Affordable Housing (San Juan Capistrano). Architect is R.L. Davidson (Fresno).

Team members include Craig Smith, Director of Development; Colleen Edwards, Project Manager; and John Severino, Construction Manager.

Photo: Marlene Murphy, RDA; Craig Smith, AMCAL; Councilor Cynthia Sterling; Councilor Lee Brand.

Santa Fe groundbreaking

BAKERSFIELD – AMCAL began construction on its first development in Kern County, the “Santa Fe” family apartments, in February. The $11,673,000 development will include 56 units and 3,150 sf of retail along Union Ave. It was funded by an ARRA Tax Credit Exchange allocation of $7,031,000 in 2008.
Santa Fe is located near a Golden Empire Transit District bus stop, McKinley Elementary Schools, Lowell Park, Bakersfield Community Health Clinic and a grocery market.

California Bank and Trust funded a construction loan of $2,900,000. California Community Reinvestment Corp. funded a permanent loan of $1,485,000. Bakersfield RDA funded $2,400,000 in HOME and loans. Non-profit partner is Las Palmas Foundation (Encinitas). Architect is The Vincent Co. (Fresno).

Team members include Craig Smith, Director of Development; Frank Chang, Project Manager; and Gerardo Huerta, Construction Manager.

Photo: Colleen Edwards, AMCAL; Debbie Scanlan, City of Bakersfield; Rhonda Barnhard, City of Bakersfield; Donna Kunz, City of Bakersfield; Arjun Nagarkatti, AMCAL; Irma Carson, Councilor; J. Philip Bentley, RDA.

Details

Company News

AGOURA HILLS - CEO Percival Vaz welcomes the following new employees:
Kecia Boulware, Project Manager (Finance).
Kris Jaghasbanian, Superintendent (Construction).
Pui Lee, Asst. Project Manager (Finance).
Karla Mairena, Project Accountant (Accounting).
Alex Nguyen, Finance Associate (Finance).

New promotions:
Arjun Nagakatti, President.
Mario Turner, Vice President of Development.

Housing Costs

The 2009 “Paycheck to Paycheck” study by the Center for Housing Policy reports that purchasing a home remains out of reach for many of California communities’ important workingclass employees.
For home ownership, 12 of the most expensive 25 metro areas were in California: San Francisco (1st), San Jose (2nd), Orange County (4th), Los Angeles (15th), San Diego (16th), and Oakland (21st).
Los Angeles’ median price is $320,000. Orange County homes cost $435,000 and require an income of $129,000.
Los Angeles homes cost $320,000 and require an income of $96,000.
San Diego homes cost $319,000 and require an income of $95,000.
Ventura County homes cost $315,000 and require an income of $94,000.
For apartments, 11 of the 25 most expensive metro areas were in California: San Francisco (1st), Orange County (4th), San Jose (9th), Los Angeles (10th), San Diego (18th).
Los Angeles’ average rent is $1,420 for a 2-bedroom unit.
Across the country, even after the housing bubble, a teacher cannot afford to purchase a home in 38% of metro areas. A police officer cannot purchase in 41% of metro areas. A nurse cannot purchase in 70% of metro areas. Since 1988, 1,500,000 persons have moved to Los Angeles, and only 200,000 new residential units have been built.
A family that earns the County’s median income of $53,000 must spent half of it on housing. Only 11% of homes are affordable to median-income households. Since 1990, rents have doubled and wages have increased only 18%.
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