|HUD No. 22-032
HUD Public Affairs
February 24, 2022
FEDERAL HOUSING ADMINISTRATION INSURES $20.3 MILLION MORTGAGE FOR AFFORDABLE SENIOR HOUSING IN NORTH HOLLYWOOD, CA
Insurance endorsement provided by FHA supports affordable financing to sustain more than 203 rental units for low-income seniors
WASHINGTON, D.C. - The Federal Housing Administration (FHA) announced on February 28 that it has closed an insurance endorsement on a $20.3 million mortgage originated under FHA’s 223(f) refinance program for Park Plaza Senior Apartments, 12450 Vanowen Street, North Hollywood, California. The mortgage will be used to refinance this age-restricted project that includes 203 rental apartments restricted to households for low-income seniors (55+ years) earning between 30% and 60% of area median income (AMI). There is an existing Rental Covenant and Agreement with the City of Los Angeles. The agreement provided a bonus density resulting in 203 apartment units, a parking reduction variance, and 41 units restricted to low-income seniors (ages 55 and older) earning 60% of the AMI.
The mortgage was originated by ORIX Real Estate Capital LLC, Pavilion Park Plaza, L.P. The Sponsor is 21 Alpha Group.
Built in 2001 with new 9% Low Income Housing Tax Credits, Park Plaza Senior Apartments is a mid-rise elevator apartment complex. Unit rents are, on average, at least 10% below comparable market-rate units. The project benefits from the California Welfare Tax Exemption given that a non-profit is the sole member and manager as well as the affordability restrictions of the LIHTC Land Use Restriction Agreement.
Common amenities at Park Plaza Senior Apartments include security, a billiards room, computer room, recreation room, fitness center, spa, pool, and parking garage. The property provides 137 off-street parking spaces. Unit amenities include an electric range/oven, vent-hood, refrigerator, and garbage disposal. Additionally, each unit features wood cabinets with laminate countertops and vinyl flooring in the kitchen area. The bathrooms within each unit feature combination tub/showers with fiberglass surrounding. Additionally, each bathroom features a commode, wood cabinet with laminate counter and built-in porcelain sink, wall-mounted vanity mirror and vinyl flooring.
About the Office of Multifamily Housing
FHA’s Office of Multifamily Housing plays an important role in the construction, substantial rehabilitation and refinance of market rate and affordable housing through the issuance of FHA mortgage insurance. These insurance programs provide stability, liquidity, and affordability to the multifamily housing market by providing credit during countercyclical times and in small markets. Fiscal year-to-date, the Office has insured 11,225 mortgages for 1.4 million homes with a total unpaid principal balance of $114 billion.
In fiscal year 2021, the Office of Multifamily Housing achieved record-breaking volume of $29.5 billion in initial endorsements for mortgage insurance. View quarterly and historical data on FHA Multifamily volume here.