Overview of HACSC Real Estate

Overview

The Housing Authority of the County of Santa Clara (HACSC) owns and controls more than 2,600 affordable housing units, referred to as the agency's housing portfolio. Our Real Estate Services Department oversees all phases: real estate acquisition and development, asset management, property management, resident services, affiliate management and facilities repair/improvements. In addition, the Real Estate Services Department manages the agency's office location at 505 W. Julian Street in San José.

The Real Estate Services Department reports its activities monthly to the HACSC Board of Commissioners.

Ownership and Affiliate Management

HACSC, either directly or through affiliate nonprofit corporations, serves as the owner, managing general partner or co-owner of the agency's housing portfolio. The portfolio includes family and senior properties as well as one specialized homeless supportive housing development. Click here for a listing of the properties in the portfolio.

The affiliate corporations are governed by boards of directors; these board meetings are open to the public. Click here for more information about the affiliate boards, meeting agendas and minutes.

Financing

HACSC has financed the development of the majority of its housing portfolio through the federal Low Income Housing Tax Credit (LIHTC) program , tax exempt bonds and private financing from lenders and investors.

HACSC's customized debt and equity packages for bond financed, tax credit assisted complexes require an in-depth understanding of capital market trends and credit analysis criteria. HACSC has also built comfortable working relationships with the top performers in the equity syndication and municipal finance businesses. Because of the agency's reputation for efficient and responsible administration of these complex  finance transaction, the agency has continuing access to the most attractively priced financing. HACSC is committed to optimizing our project financing strategies in order to minimize the subsidy required without sacrificing the quality of the affordable housing development.

Affordability and Rents

The majority of HACSC's housing portfolio consists of units restricted to 50% and 60% of the Area Median Income. Rents may vary from property to property. Click here for links to the property management companies to check current rents.

Property Management and Resident Services

HACSC contracts with qualified professionals for property management and resident services. The agency's Real Estate Services Department oversees and administers these contractors. HACSC relies on three property management providers to service its housing portfolio:

These property management companies provide on-site management, maintenance, compliance and day-to-day oversight of the agency's housing portfolio.

For a review of the financial impact of HACSC's transition to third-party property management, click here .

HACSC provides the residents within its portfolio with on-site services ranging from homework centers to senior nutrition. In addition, HACSC uses an annual resident survey to assess the quality of these HACSC service providers.

Development of Affordable Housing

HACSC is an active and innovative developer of affordable housing. The agency has constructed new housing, rehabilitated and preserved existing housing, and assisted with the development of more than 30 housing developments serving a variety of households including seniors, persons with disabilities, veterans and homeless individuals and families.

Most recently, HACSC used LIHTC financing to complete the transformation and rehabilitation of 535 units of public housing into HACSC-controlled properties. HACSC is continuing to preserve its remaining housing portfolio using LIHTC financing.

The agency also consults and assists with other low-income housing developers in Santa Clara County and the surrounding area. These developments include a 240-bed shelter developed by Emergency Housing Consortium and the San Benito Migrant Farm Worker Housing Development developed by San Benito County.

Click here to see a list of developments built and/or rehabilitated by HACSC.

Development Pipeline

Upcoming Development Pipeline

In order to help meet the great need for more affordable housing opportunities in Santa Clara County, HACSC's Real Estate Services Department works to preserve existing properties through repair and rehabilitation, and to develop new rental units. There are four key financial resources that make this possible: federal low-income housing tax credits that are awarded by the State of California, tax-exempt bonds that are issued by HACSC and purchased by private investors, conventional bank loans, and local agency loans available through the state, Santa Clara County, cities or HACSC. Usually, it takes all four of these resources to develop affordable housing.

To be successful, affordable housing must offer tenants rents that are affordable to fixed- or low-income households, and also yield rents that are sufficient to make loan payments and to keep the properties well maintained and managed.

In 2014, HACSC has two major projects under development on one site within the City of San José.

  • Park Avenue-777 Park Avenue (Phase 1 and 2) 

Centrally located 2-acre vacant site near downtown San José adjacent to the Diridon Transit Center to be developed as new affordable housing. Pending a PD zoning application under review by the city, new apartments will be built in two phases.

Construction of the first phase is planned to begin by late 2014.

To qualify for a unit, households must earn less than 20%, 50% or 60% of the Area Median Income (adjusted for household size).

Phase I - Five-story family building will include 13 one-bedroom, 39 two-bedroom and 29 three-bedroom apartments with balconies, tucked-under parking, on-site professional management, children's and adult services and activities, and a community room.

Phase II - Four-story senior building will include 95 one-bedroom and 5 two-bedroom apartments, a community center, on-site professional management, and a full range of services and programs.

For more information on development please contact: RealEstate@hacsc.org

Asset Management

HACSC strives to ensure that its housing portfolio not only complies with regulatory requirements but also is maintained and operated under standards that meet or exceed the private market. Agency staff has developed a reporting, inspection and compliance structure that ensures clear oversight of the property management companies and that includes regular reviews of the portfolio's income and expenses, regular site inspections, operating compliance reviews and annual audits.

For more information on HACSC's Asset Management, please email RealEstate@hacsc.org

Bond Issuance

As a municipal agency, HACSC is able to issue tax-exempt bonds for affordable housing and other eligible development projects. Over the past 20 years, HACSC has completed more than 30 bond issuances for affordable housing projects. In 2012, HACSC implemented a new post-issuance compliance monitoring process, as recommended by the IRS.

HACSC bond issuances are subject to standard fees.

Details of past issuances can be found on the Electronic Municipal Market Access (EMMA) system.

For more information on bond issuance, including requests for new bond issuances, please contact RealEstate@hacsc.org.