Sunset Ridge Project
Sunset Ridge Apartments
The Sunset Ridge project involved the purchase and renovation of an 800-unit apartment building in Lancaster, California. Sunset Ridge is owned and operated by Provident Housing Resources, Inc. (PHR), which was created in order to purchase, operate and maintain affordable housing. Sunset Ridge was built during 1986-88 and renovated in 2003. It is comprised of 184 one-bedroom units, 486 two-bedroom units and 130 three-bedroom units.
The project involves both Senior and Subordinate debt financing. PHR acquired financing through tax-exempt revenue bonds payable to the Lancaster Redevelopment Agency Multi-family Housing Revenue:
· Lancaster Redevelopment Agency Multi-family Housing Revenue Sunset Projects Series 2003A ($28,400,000)
· Lancaster Redevelopment Agency Multi-family Housing Revenue Sunset Projects Subordinate Series 2003B ($23,100,000)
Through a credit agreement and the use of total return swaps, both risk and interest rate expenses are able to be reduced. The debt is also cross-collateralized across the housing portfolio to ensure any repayment obligations.
The property, set forth in the land use restriction agreement, must hold 75 percent of the units reserved for persons with income at 80 percent of Average Median Income (AMI) in addition to 20 percent of the units reserved for persons with income at 50 percent AMI. This provides lower income residents with the ability to live both comfortably and affordably. However, Provident is dedicated to providing more than just affordable housing. To ensure high quality community life, Provident operates its Service Enriched Housing Program. The program is designed specifically for the property’s residents and ensures they have access to the services they need to create a safe and stable environment while providing opportunity and support for the realization of individual goals and aspirations. The Service Enriched Housing Program provides residents with access to a range of programs and services sponsored by local and national organizations which can effectively address social problems such as abuse. The program can also enhance the quality of life for residents by improving access to education, employment, childcare, healthcare, transportation and more.
Sunset Ridge is managed by Provident Resources Management LLC.