Affordable Housing Preservation

Walnut Creek Manor is a 418-unit, formerly senior housing property located in unincorporated Contra Costa County.  

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The property qualified as naturally occurring affordable housing (NOAH) upon acquisition in that it was leasing at below market rents, but was not deed-restricted or regulated affordable housing. The property had been marketed for sale as a "value-add" opportunity which proposed a renovation and redevelopment strategy that would allow rents to be increased by 51% to market levels.

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However, via the application of a tax abatement and 100% private financing, the property was deed-restricted to preserve rents at levels affordable to households at 80% of Area Median Income (80% of AMI).  

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Existing tenants remain in-place and units made available via voluntary attrition are offered to a range of tenant profiles at 80% of AMI rents.

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Because the "natural" affordability of NOAH is often the result of a history of substandard management and maintenance, a robust capital improvement plan will be implemented. The portfolio budget included investment of $25,000 per unit which will be put towards common area upgrades, unit renovations and life / safety improvements.

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The preservation of NOAH has a number of ancillary benefits including extending the useful life of older vintage real estate and the reduction of green-house-gases via the replacement of older building systems with more energy efficient products.