November 22, 2024
Lutheran Organizations Partner to Help Provide Affordable Housing
For the first time, California Lutheran Homes (CLH) has partnered with Lutheran Social Services of Northern California (LSSNC) to help provide affordable housing for those in need. CLH recently provided a $2.79 million construction loan to LSSNC so it can qualify for the California Department of Housing and Community Development Portfolio Reinvestment Program (PRP).
When the state foreclosed on three affordable housing projects, it asked LSSNC to oversee operation of the 24 units, which all require renovation. CLH’s loan allowed LSSNC to start the process after efforts to find a commercial lender failed.
While CLH and LSSNC had been discussing ways to work together, the social services agency reached out to CLH when a loan that was guaranteed from a bank fell through at the last minute. “LSSNC was in a real bind and asked CLH if it could help with a construction loan so the agency could begin renovation on 24 units of affordable housing,” said Deacon Nancy Ackerman, president and CEO of CLH.
Within a matter of two weeks, Ackerman said she was able to discuss the loan with her board, conduct the preliminary due diligence reviews, and issue a letter of loan guarantee. CLH’s quick response allowed LSSNC to meet its deadlines with the California Department of Housing and Community Development (HCD).
Carol Roberts, CEO of LSSNC said: “CLH has truly been a blessing to LSSNC. When our construction lender backed out at the 11th hour, CLH was able and willing to step in and provide us with a construction loan. Thanks to CLH, we’ll have 24 fully rehabilitated apartments and townhomes that will further LSSNC’s mission of ending homelessness. Deacon Ackerman is easy to work with, and the process is smooth and straightforward with no unnecessary red tape. They have my highest gratitude.”
LSSNC acquired the property from HCD, which took back the units from the previous owner in foreclosure. LSSNC was asked to operate the property as a home for homeless youth and those formerly living in foster care.
The properties are located at Coral Lane, Edan Avenue, and North Hunter Street, all in Stockton.
Contact
Nancy Ackerman
1-800-233-3709
nackerman@californialutheranhomes.org
