Mutual Housing Receives Millions for Zero-Net Energy Farmworkers’ Development
Mutual Housing California has been awarded more than $14.5 million in aggregate federal and state tax credits, which they can use to raise more than $12 million for the development of housing in Woodland for agricultural workers.
Without redevelopment funding, developing affordable housing communities have to rely even more heavily on tax credits. Because the economy is picking up, private investors are willing to buy them again.
Mutual Housing California has been allocated more than $14.5 million in aggregate federal and state tax credits, which they can use to raise more than $12 million for the development of housing in Woodland for agricultural workers.
The 62 apartments and townhomes at Spring Lake will be one of the first zero-net energy communities for farmworkers in the nation. Energy-efficient design will bring energy use down, and a photovoltaic system throughout the complex is expected to generate the needed amounts of electricity.
To raise the money for Spring Lake, Mutual Housing will syndicate $1,058,154 annually in federal tax credits over 10 years and $3,527,170 in one-time state credits for low-income housing. Depending on the market, investors will pay varying amounts for the credits to offset their taxes, entering into a limited partnership with Mutual Housing for ownership.
We are very pleased to have Mutual Housing California develop a community in Woodland that will provide much-needed housing for many in need, including those who work so hard to grow and harvest our food,” said Tom Stallard, Woodland Vice Mayor. “This will be a beautifully designed addition to Woodland.”
Mutual Housing was the only developer approved in the Capital and Northern California region. With 148 points, it also had the highest tie-breaker score in the region for projects in the first 2013 round in California.
“People don’t realize how hard it is to put together the funding for each of our communities—and Mutual Housinng at Spring Lake is no exception,” said Rachel Iskow, Mutual Housing Chief Executive Officer. “We have spent three years in the financing and planning of the development.”
Construction is expected to begin this fall.