Developer will rehabilitate 55 housing units in the Sacramento community
SACRAMENTO, Calif.–(BUSINESS WIRE)–Vitus, a national developer and owner of affordable housing, announced the acquisition of River City Trio in Sacramento. River City Trio consists of three multifamily properties, totaling 55 units. In addition to renovating these properties, Vitus is preserving them as an affordable housing community for decades to come.
“The acquisition of River City Trio is an exciting step forward in our expansion into California and creating affordable housing for low-income residents in Sacramento County,” said Brooke Kim, director of development at Vitus. “In addition to revitalizing these units, we hope to improve the quality of life for residents and make the Sacramento community stronger.”
Vitus partnered with nonprofit the Foundation for Affordable Housing (FFAH) on the project and Merchants Capital financed it with a Freddie Mac Tax-Exemption Loan of approximately $8 million. The portfolio also utilized a bond issuance of multifamily housing revenue bonds from the Sacramento Housing and Redevelopment Agency (SHRA). Construction work will be completed by MFRG Icon with architectural services provided by True Craft Architecture. Upon completion of construction, the properties will be jointly managed by Aperto Property Management.
Vitus will also be bringing 520 hours per year of new resident services to these properties, including a combination of after school programming for children and adult education on health, wellness, computer literacy and other topics depending on the needs and interests of the residents. These services will be provided in a new community room and leasing office.
“Rehabilitating River City Trio will help preserve essential housing for a community of long-term, low-income residents, including some that have lived in these properties for over 20 years,” said SHRA Executive Director, La Shelle Dozier. “Ensuring that existing affordable housing stays affordable and provides high-quality homes for families and seniors is essential. We are also thrilled that Vitus is bringing robust resident programming to the community.”
Construction for River City Trio is expected to begin in November with an estimated completion date of late 2023 and will create minimal disruption to the neighborhood and surrounding areas. A relocation specialist will work directly with current residents to find alternative housing during the dates their unit is being renovated.
Approximately $60,000 has been budgeted for renovations per unit. All units will be renovated with comprehensive kitchen and bathroom remodels, new vinyl plank flooring, and upgraded heat pumps and air handlers. Upgrades also include high efficiency lighting, ENERGY STAR appliances and energy-efficient HVAC systems. The properties’ exterior will be renovated with new lighting, roofing and painting, sidewalk and asphalt repairs, installation of security cameras and landscape upgrades.
Additionally, Vitus will be converting 10% of the units into ADA units to accommodate the high number of existing senior or disabled residents at these properties.
Vitus purchased River City Trio through a tax credit acquisition. 53 units are controlled by a Section 8 Housing Assistance Payments Contract, which was extended at closing for a period of 20 years. These units are restricted to residents earning 60% area median income or lower. The remaining two units are designated as non-restricted management units. To date, Vitus has preserved nine properties in California and is continuing to invest in affordable housing in communities across the state.
At Vitus, our mission is to create positive impact – one community, one family and one life at a time. Since 1993 we have partnered with lenders, investors and public agencies to preserve and extend the life of existing affordable housing across the country in markets with the greatest need. Through holistic renovation, we focus on the well-being of residents and rejuvenating the surrounding community to both improve the overall quality of each property and incorporate features that promote physical activity, community gathering and energy efficiency. To date, our team has provided stable homes for more than 25,000 residents in 29 states. www.vitus.com
Samantha Kwok, 626-348-9232, [email protected]