The Casa del Pueblo apartment project, located in in the Central Business District of San Jose, California, was the $62.6 million substantial rehabilitation of a 165-unit, 12-story building that provides affordable housing for people 62 and older. The building, built in 1976, is connected to the United Food and Commercial Workers International Union Local 5 headquarters. All units were completely refurbished, including new appliances, windows, doors, floors and ceilings.
The HIT provided $25 million of financing by purchasing Ginnie Mae construction and permanent loan certificates insured under Section 221(d)4 of the National Housing Act, in September 2015. The HIT worked with mortgage lender Red Mortgage Capital, LLC and developer Preservation Partners Development (PPD) to structure the transaction.
The 165 rental units are affordable to individuals earning between 30% and 60% of area median income (two additional units are designated for management). A long-term HUD Housing Assistance Payments contract preserves the affordability of 154 of the units for 20 years and nine units have rents limited by Section 236.
The construction firm Blach Construction Company of Santa Clara utilized 100 percent union labor. The project created an estimated 255 union construction jobs.*
*Job and economic impact figures are estimates calculated using IMPLAN, an input-output model, based on HIT project data. The data is current as of March 31, 2020. Economic impact data is in 2019 dollars and all other figures are nominal.
This page provides information about a project or projects financed by the HIT which may or may not be reflective of other financed projects or refer to an asset currently held in the HIT’s portfolio. Investors should consider the HIT’s investment objectives, risks, charges, and expenses carefully before investing. This and other information is contained in HIT’s prospectus, available at aflcio-hit.com or by calling 202-331-8055. The prospectus should be read carefully before investing.