Tax-exempt financing approved for Turnagain Arms

The San Diego County Board of Supervisors approved the issuance of tax-exempt revenue bonds to Community Housing Works for the acquisition, rehabilitation, and development of the Turnagain Arms Apartments.

The supervisors’ unanimous July 31 vote authorizes the California Statewide Communities Development Authority to issue up to $7,500,000 of tax-exempt bonds to Community Housing Works for acquisition, rehabilitation, and development of the 80-unit facility in the 900 block of East Mission Road.

The Turnagain Arms Apartments were built in 1974 and consist of nine two-story wood-framed buildings, an office, and a community center. Since 1995 the property has been owned by Turnagain Arms Community Housing Association.

Community Housing Works, which is based in San Diego, specializes in developing and operating affordable rental apartments in urban, suburban, and rural residential communities throughout San Diego County. Community Housing Works has already completed more than 1,300 units in 25 complexes and is currently working on an additional 300 apartment units. Community Housing Works has 501(c)(3) non-profit status, and in addition to building new complexes to alleviate San Diego County housing needs the organization also acquires and preserves older buildings to revitalize neighborhoods.

Community Housing Works has created Fallbrook Renaissance, LLC, which will be the general partner in an entity called Turnagain Renaissance Housing Associates, LP. Turnagain Renaissance Housing Associates, LP, will acquire the property from Turnagain Arms Community Housing Association and will restore building components which are beyond their useful life, replacing them with energy-efficient components when practical. Community Housing Works will also upgrade the existing community center to include a community room and a computer learning center. The community center will have free Internet access.

The California Statewide Communities Development Authority was created to provide local governments, non-profit public benefit corporations, and private entities with access to low-cost, tax-exempt financing for projects which create jobs, help communities prosper, and improve the quality of life of local residents. Since its inception the CSCDA has issued more than $25 billion of tax-exempt bonds.

The CSCDA is a joint powers authority whose members consist of more than 460 cities, counties, and special districts. The CSCDA has statutory authority to issue bonds, notes, or other financing documents in order to promote economic development, including the provision and maintenance of multi-family housing. However, the jurisdiction in which the project is located must approve the project and the financing in order for the CSCDA to issue the financing mechanism.

The role of the County of San Diego was to hold a public hearing and approve the issuance of the bonds. The CSCDA rather than the county will issue the bonds, and Community Housing Works is responsible for their repayment.