The Cove, Newport Beach, CA
Goal: Execute a small but mighty project in our Newport Beach backyard
Located just steps from Coast Highway and public beaches, The Cove Apartments provide permanent affordable and supportive rental housing for homeless veterans and low-income seniors 62+ earning 30-60% of the area median income. This laid-back, beachy complex features a courtyard with an organic community garden and shared outdoor dining and meeting spaces with peaceful views of the neighboring wetlands. The American flag proudly flies over the courtyard and staircases showcasing patriotic and inspirational quotes. Several units even have private patios with ocean views. Crucial to the project’s success are the supportive services offered to the veteran and senior tenants provided by Mercy House in conjunction with the VA.
CDP acquired the 12-unit property, which was formerly a rundown market rate complex and completed extensive upgrades before transforming it into affordable rental housing. The project had hurdles to overcome. There was outspoken community opposition from affluent Newport Beach neighbors afraid of low-income housing in their neighborhood. Support from a strong City Counsel along with community outreach efforts enabled the project to push forward. Neighbors have now embraced the newly designed GreenPoint Rated property which features a refreshed exterior, all new unit interiors, a new laundry room, office, and a small courtyard. Construction was completed and 100% occupancy was achieved in February, 2018.
Financing was provided from the sale of 4% Low Income Housing Tax Credits (LIHTC),Tax Exempt Bond financing from bonds issued by CSCDA with construction debt provided by Citi Community Capital. Additional permanent debt was provided by City of Newport Beach Housing Funds, California Housing Finance Agency (CalHFA), and grants from the Affordable Housing Program (AHP), CITI Salute program, and The Home Depot Foundation.
-Kyle and Eric were born a stone’s throw from the property, strong local connection
-Wonderful location across PCH from the beach and backing up to open space
-Extremely small scale
-Strong NIMBYism attitude from neighbors
Number of Units: 12
Lot Size: .16 acres
Density: 75 units/acre
Unit Size: 402 ft2 average
Unit Mix: 12 1BD/1BA
Parking Spaces: 13
Affordability: 30% - 60% AMI
Financing: 4% LIHTC and Tax Exempt Bonds, City of Newport Beach Affordable Housing Funds, HUD VASH, CalHFA, AHP, CITI Salute Grant, The Home Depot Foundation Grant
Sustainability: Certified Green Point Rated
Architect: Rand Kruse
Contractor: Precision General Contractors
Property Management: Solari
Non-Profit Partners: Mercy House; Integrity Housing
Total Cost: $6,660,625
Cost Per Unit: $555,052
Federal Tax Credit Equity 2,035,153
CalHFA Permanent Loan 1,575,000
City of NB Note 1,975,000
CalHFA Soft Debt 290,000
AHP FHLBSF 120,000
CITI Salute + Home Depot Grants 185,000
Deferred Developer Fees 480,472
Total Sources 6,660,625
Total Uses 6,660,626
CDP is proud to partner with these organizations, dedicated to bettering the lives not only of The Cove’s residents, but of those lower-income residents in surrounding communities.
Mercy House is a nonprofit organization that’s core mission is to end homelessness. Based in Santa Ana, Mercy House provides housing and comprehensive supportive services for a variety of homeless populations which include families, adult men and women, mothers and their children, persons living with HIV/AIDS, individuals overcoming substance addictions, and some who are physically and mentally disabled. At The Cove, Mercy House provides services for the senior and formerly homeless veteran residents, some of whom suffer from substance abuse issues, mental and/or physical disabilities, and other trauma-related illnesses caused by their service or time on the streets. Mercy House partners with the local VA who regularly provides additional case management services to our veteran tenants. Mercy House has one part-time case manager who visits the property three or more times each week to help their clients overcome challenges, encourage participation in onsite events and activities, and to help aid their transition from living on the streets to living in a housing community.
James Dockstader Landscape Architect
Jim was the project landscape architect and focused on bringing in a beautiful palette of edible landscaping and garden plants that would create a meaningful connection between the Senior and Veteran residents and the source of food. Jim donated a year of his personal time after the project construction was complete to tend to the garden and work with the residents to teach them the skills necessary to sow, maintain, harvest, and utilize the food being grown. Jim’s the man.