Kern County Revitalization
Bakersfield, California

Development:
127 Rental units
84 For-Sale Condominium Homes
72 For-Sale Duplex Fee Simple Homes
92 Section 8 Vouchers

TCG Development Services, in partnership with the Housing Authority of the County of Kern, transformed three aging public housing communities by rehabilitating the existing duplex units into for-sale homes and selling them to resident public housing families. The sales proceeds were then used to leverage the development of additional replacement rental homes.   The three rehabilitated public housing communities were: Oro Vista in Bakersfield; Rosa Vista in McFarland; and Vina Vista in Delano. The revitalization was financed with a combination of capital funds and a $4.453 million Hope VI grant from the U.S. Department of Housing and Urban Development, that was then leveraged with private debt and equity funding. The total project development cost was $27.7 million, for a leverage ration of 6:1.

The development team implemented a homeownership program for each of the above communities. Oro Vista was rehabilitated and became an 84 unit condominium known as California Gardens; the Rosa Vista and Vina Vista communities were subdivided and sold as 72 individual duplex homes.  In the McFarland and Delano communities, the team provided for replacing the converted public housing units with mixed-finance rental units that were made affordable to the public housing families.   In addition to the condominium development, the public housing units in Bakersfield were further replaced with 92 section 8 vouchers.  In summary, the TCGD team developed and implemented the affordable housing program; prepared 156 public housing families to become homeowners; added 92 Section 8 vouchers and 127 new units of tax credit housing for a total of 375 units.  TCG Development was instrumental in obtaining from the State of California 9% low income housing tax credits up to $17 million in equity.  This was combined with the proceeds from homeownership sales to develop the additional replacement public housing units debt free.   

Development Team:
TCG Development Services, Master Developer
The Housing Authority of the County of Kern

Financing:
U.S. Department of Housing and Urban Development
Federal Home Loan Bank
The Housing Authority of the County of Kern
California Tax Credit Allocation Committee
Columbia Financial (Now PNC)
       
Marketing / Management
TCG Development Services, LLC –Homeownership
Housing Authority of the County of Kern - Rental