Since the 2008 collapse of the real estate market the housing stock available for both purchase and rental across the country has diminished greatly to the point that impacts in economic stability and growth have been experienced in many communities. New affordable housing is in great demand by our workforce. Affordable housing means that the rent is kept to approximately 30% of a person’s income. Currently in Los Angeles County residents are paying as much as 60% of their incomes for housing. This means that people who live in market rate housing have less disposable income and often times experience severe overcrowding.
The Penney’s Apartments development will be comprised of 101 new one bedroom apartments with retail on the ground floor. The qualifying income for these apartments will be a percentage of median income or about $34,000 by the current requirements for a single resident and $39,000 for a household of two. This new development will provide much needed housing for people who work as starting nurses, teachers, ambulance drivers, or recent graduates. These new residents will help our local economy by their spending in our community or working closer to home. In addition, during the construction phase, construction jobs will be created and local spending with building material suppliers and contractors will increase.
The funding sources for this project will be provided by tax credit bond financing and tax credit equity. The city of San Fernando will have ZERO dollars invested. Furthermore the project meets the specific plan for the mall that was approved in 2005. (SP-4) Parking at the site meets the city code. Additionally, the JC Penney department store building that is important to the community will have it’s façade preserved along the San Fernando Road frontage for the community to enjoy.
Since the mid 1980’s the downtown mall has been in decline and only recently have new tenants entered the market. The Penney’s Apartments development will be a catalyst for a long awaited renaissance. The opening of our newest development, with tenants entering the market starting in 2015 nclude: Chipotle, Wingstop, AT&T, and Yogurt Land at the corner of Truman and Maclay, will become part of the revitalization much needed in the downtown.
Adriana Gomez, Asset Manager for Aszkenazy Development, Inc., the developer on this project. Aszkenazy Development, Inc. also owns and publishes the San Fernando Valley Sun / El Sol.