Construction UpdateSept. 10, 2012
Burbank Housing busy with four projects
Petaluma senior housing complex gets 68 more units
Nominations sought for 2012 Top Projects
PETALUMA -- Phase 2 of the Vintage Chateau affordable housing community for seniors 55 and older is set for occupancy this month.
[caption id="attachment_61112" align="alignright" width="450"] Work crews prepare the second phase of Vintage Chateau for September occupancy. (credit: Gary Quackenbush)[/caption]
The 68-unit addition on 1.67 acres, located at 325 N. McDowell Blvd., is adjacent to the existing 240-unit Vintage Chateau property built on an 8.05 acre parcel at 333 McDowell Blvd., which opened in 2000.
"There is a huge and growing need for senior and family housing projects," said Art May, senior vice president of project developer USA Properties Fund. "Our five-year plan is to build, acquire and/or rehabilitate projects to meet our goal of 15,000 units by 2015 within our portfolio. We are looking at other areas of the North Bay area to add to the five projects we have today in the region."
Both properties were built, owned and managed by Roseville-based USA Properties Fund, Inc., which has developed, acquired and/or rehabilitated more than 11,000 units in 72 California and Nevada communities since its founding in 1981 by J.B. Brown. The company has 372 employees in its Roseville and Irvine offices.
"What distinguishes us from other developers is that we are committed to each property for the long term," Mr. May said. "We don't just build and flip these communities in a few years."
Privately owned USA Properties Fund is vertically integrated with development, construction and management divisions under the same roof. The company value-engineers each project for the future with an eye toward sustainability and cost-effectiveness.
Evidence of this can be seen in the choice of building materials that can stand the test of time -- concrete roofing tiles, Hardy plank siding, drought-tolerant native plant landscaping, energy-efficient appliances, etc.
"When one of our communities approaches the end of an initial 15-year use period, we typically re-syndicate it with new tax credits and use the funds for upgrades and rehabilitation. Seven of our 85 properties have been re-syndicated. To date we have acquired more $550 million in tax credits for affordable apartment communities."
The $16 million Vintage Chateau II was funded using 4 percent federal tax credits and tax-exempt bond financing through bond issuer Association of Bay Area Governments Finance Authority.
When these tax credits were awarded, USA Properties approached Boston Capital, Citi Community Capital and the city of Petaluma, creating a private-public partnership that purchased these credits for 10 years.
Construction for Vintage Chateau II began on Aug. 4, 2011, and will be completed next month. Pending final occupancy permit approval, the development then will be turned over to USA Multifamily Management for day-to-day operations.
The project includes 54 one-bedroom, one-bathroom units with 593 square feet of living space with rents ranging from $775 to $910. There are also 13 two-bedroom, two-bathroom units with 750 square feet of floor space that will rent for $1,090, plus one apartment for a property manager.
Tenants need to meet certain income qualifications.
Apartment amenities include pantry cabinets, a dishwasher, garbage disposal, refrigerator/freezer, range oven with hood, energy-efficient and individually controlled heating and air conditioning, as well as wall-to-wall carpeting.