Mortgage banking company Merchants Capital recently secured more than $55 million in financing for the development of Maison’s Palmdale, an affordable housing property currently under construction near 65th Street East and East Avenue S. The property is the first in the state to be developed under recently passed legislation which allows for greater lot size density.
To finance the property, Merchants Capital secured a $31.6 million Merchants Bank of Indiana construction loan and $24 million in permanent financing through a 4% Low-Income Housing Tax Credit Fannie Mae Forward Commitment and Fannie Mae Permanent Loan. The financing deal included both a taxable and tax-exempt component.
Maison’s Palmdale will be comprised of 118 detached housing units featuring three-bedroom and two-bedroom units. The three-bedroom units include a two-car garage, while the two-bedroom units have access to designated off-street parking spaces.
“Serving as the financier for this project shows Merchants’ commitment to advancing affordable housing across the nation,” said Marsha Goff, Executive Vice President at Merchants Capital’s Saint Paul office. “By capitalizing on the new zoning laws, we were able to maximize the development, bringing even more affordable housing options to such a desirable living area.”
Thirty-six of the units will be restricted to residents earning no greater than 50% of the area median income (AMI), and 81 units will be restricted to residents earning no greater than 60% AMI. One unit is reserved as the manager’s unit. Additionally, all 118 units on the property are under a Land Use Restrictive Agreement (LURA) with no release provisions.
“Ravello is very excited to work with industry best in class partners Merchants Capital and WNC to provide affordable, single family dwellings to the local community,” said Phil Ram, CEO of Ravello Holdings, the developer of the project. “The California Dream was built on the ability of working families to live and thrive in comfortable homes. We are thankful our legislators and the city of Palmdale have enabled us to be the first to provide detached affordable homes to Californians in a generation.
“We are very excited to be moving forward with the project and strongly believe in our mission to provide residents in the city of Palmdale with high quality affordable housing,” said Matt Avital, Principal at Ascenda Capital, developer partner for the project. “This development is unique because we will be providing each of our residents with a private backyard, a private entrance, and luxurious shared amenities at an affordable price. We strongly feel that our project will positively impact the Palmdale community and are looking forward to a successful development.”
To learn more about Merchants Capital and its services, visit www.merchantscapital.com.
[Information via news release from Merchants Capital.]
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LaToya says
How can I apply?
Jugoso says
Per https://www.census.gov/quickfacts/fact/table/palmdalecitycalifornia/SEX255219
Median household income (in 2019 dollars), 2015-2019 $62,865
Claire says
Most of the commenters went way off the rails regarding this article. Glad to see this happening for working families.
Irene M Collins says
First in the state and acourse we’re the first ones to get it!!! Our community needs to think about all the great and wonderful changes that our concerned city mayor is doing for us… 2 low income housing community’s, no new business, inviting more crime, no new housing for middle to moderate incomes… Wow!!! Palmdale is changing for the worst!!!
Franko says
Palmdale’s the new south-central.
El Vez says
I’d take East L.A. over Lancaster in a heartbeat. They don’t have a whack job mayor and they have much better food.
Betty says
How do we apply?
Morry says
… you wait, then try to scoop one up when the original buyer inevitably defaults –
Lavette says
For ALL the negative ppl on here talking bad about Sextion 8 .. everyone who is on this program are not loud , trashy and Aliy do have class with jobs. so when you talk about ppl on this program get your facts correct
Tim Scott says
Lavette this is just the outcome of decades…generations even…of Republicans/conservatives being indoctrinated into a belief system that being impoverished is a “moral failing” and the counterpoint that the wealthy, particularly the straight up born wealthy of absolutely no demonstrable merits are somehow “superior and deserving.” Don’t let them get you down.
Nakia Johnson says
I’m interesting and getting more information regarding this new development. I would like to know is there a waiting list and also the qualifications where do I go to apply
Bob says
We bought into a new housing tract in the early 2000s. The value of the homes skyrocketed and people sold. Investors bought and turned the homes into rentals, many Sect. 8.
What was once a nice, quiet street changed with the Sect. 8. They subletted rooms. One house had 16 people. Many had able-bodied men who never went to work. These were the homes where police responded—numerous times. Wrecked/totaled cars sat out front for months. Trash and other items accumulated. Neighbors complained about smelling pot. Children were beaten/abused out on the street, or neglected and left outdoors with no supervision.
One house seems to have sold and the buyer lives in it. We keep our fingers crossed that the others will sell, esp the one with owners who don’t seem to give a darn and don’t take care of it. While this may not be the case every where, all the ones on our street are problematic.
Marquita Covington says
How do you go by apply for this if you already have a section 8 voucher?
Altreana says
Are you going to be excepting section 8 vouchers for the units
Lorine says
Why would they want to? If they do, the place will be trashed in no time! My advice to the builder/owner: stay away from Section 8! If you accept it, expect trash everywhere, parties, loud music, rude people, fights, shootings, murders…you name it!
There isn’t a single place where Section 8 has gone and made the place better!
William says
I suspect that Republicans love Section 8.
They never complain about it other than to trash the voucher holders/tenants. You can be sure that most of the landlords are Republicans.
Republicans want to get rid of Social Security, welfare benefits and the rest but they never mention ending Section 8. Why is that?
Because they are the recipients of Section 8. The renters don’t get the money. They get a voucher. The government money goes straight to the landlord’s bank account.
How nice for them.
What do Republicans do for this country that is so important that we’d be lost without the GOP?
Riley S. says
Why would they? …they’ll just be asking for violence, parties, greasy wrappers and plastic bottles everywhere, screaming, homicides. No thanks!
#RecallRex says
Remember when Rex declared War on Section 8 and got us in a lawsuit that cost the taxpayers millions of dollars?
#RecallRex
Ella Newels says
Will you be excepting section 8
Bob says
Did you mean ‘accepting,’ meaning willing to receive? Or did you mean ‘excepting,’ or excluding, Sect. 8?
Terry B. says
You’re asking a lot here, Bob!
Josefa says
Yuck! I hope not !
Terry Irons says
I notice this type of development never gets built on our Westside of Palmdale and I wonder why? BTW who is our council person that is getting dumped on?
Barry Black says
Majority votes on the Palmdale City Council are Westsiders that will never let this type of housing on our precious side of town. We have seen what is happening lately, not good!
William White says
That is not true Barry Black. Palmdale was sued over not having districts. Rex was the lawyer. Palmdale has City Council from all parts of the city. Rex controls the three from the Westside
Betty R Livotto says
How can I apply and when