BAHFA Works to Keep South Bay Apartment Complex Affordable
The Bay Area Housing Finance Authority (BAHFA) recently collaborated with New York City-based Jonathan Rose Cos. and its nonprofit partner, Pacific Housing, to keep San Jose's The Grove apartments affordable by utilizing the Welfare Tax Exemption Preservation Program.
Jonathan Rose closed the 331-unit building purchase on Nov. 30 and will soon commence an $11 million renovation effort to keep the homes in quality shape. With BAHFA’s assistance, and as part of Jonathan Rose’s mission, all apartments will be permanently deed-restricted as affordable housing.
BAHFA created the Welfare Tax Exemption Preservation Program to help mission-driven housing developers achieve their preservation and protection goals. The program provides the public sector support that private developers need to qualify for property tax relief under state laws. Eliminating property taxes from a building’s operating budget means lower rents for tenants. The program's assistance includes a recorded deed restriction on the property that ensures that rents remain affordable in the future.
This is BAHFA's sixth project to use the Welfare Tax Exemption Preservation Program. Overall, the program has preserved almost 500 total units.
The Welfare Tax Exemption Preservation Program is just one tool in BAHFA’s growing toolkit of resources created to deliver affordable housing to the nine county Bay Area. Staff are available to work with all developers who are considering building acquisitions that meet the program’s term sheet requirements.