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Project Profiles

Fairfax Senior Citizens Housing, Inc.

1222 North Fairfax Avenue
Los Angeles, California 90046

Census Tract: 7010.00
Minority %:   20.20%
Poverty %:   15.84%

Project Description
Fairfax Senior Citizens Housing, Inc., a not for profit 501(c)(3) corporation, needed to refurbish two elevators of the senior citizen complex. As the building is approaching 20 years of age, it was necessary to upgrade and modernize the elevator to optimize services to the senior and disabled residents. In September 2000 the property paid off its HUD insured mortgages (HUD 202 Program Loan and HUD Flex Loan), which carried an interest rate of 9.25%. The loan was refinanced with a $10 million dollar variable rate demand housing revenue bond. The interest expense is expected to average 5%. The renovation of the elevators was an ineligible expenditure in the bond issue, therefore, the LDC provided the loan for the refurbishing of the elevators.

Neighborhood Description
The subject property is located in the Fairfax area of the City of West Hollywood. The current zoning of the property is "WD-R4" Multi-Family Residence.

Community Development Impact
This loan allowed the tenants of Fairfax Senior Citizen Housing, Inc. d/b/a Fairfax Towers to continue having easy access to their units. The tenants of Fairfax Towers are senior citizens and disabled persons that must be Section 8 qualified to reside in the Fairfax Towers.

Fairfax Senior Citizens Housing d/b/a Fairfax Towers is a not for profit corporation organized in 1980 to acquire, refinance, renovate and operate Fairfax Towers. The corporation acquired land, constructed a complex and is operating the 151-unit apartment complex. The complex consists of one eight-story residential tower. There are 150 one-bedroom and one two-bedroom apartment occupied by seniors along with an on-site manager's unit. The complex's common area amenities including a large recreation room equipped with a kitchen located on the first floor that is used for social events and dining. The complex also contains a small library and classroom where English classes are offered.

Community Development Finance Effect
The participation of LDC in this transaction allowed Fairfax Senior Citizens Housing to finance the refurbishing of the elevators for their tenants. The structure of the loan includes the LDC and the equity infusion from the borrower:

  % of Loan Loan Amount
LDC 90.0% $144,500
Equity 10.0% $16,000
Total Project 100.0% $160,500

The loan is collateralized by a UCC-1