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CalHFA approves $61 million permanent loan increase for Alamo Street Apartments
Summary
The CalHFA board approved Resolution 25‑27 to raise the permanent loan for the Alamo Street Apartments (a 271‑unit mixed‑income project in Simi Valley) to $61,000,000 to cover construction delays and higher financing costs; the developer will defer roughly $605,000 in fee.
The California Housing Finance Agency board approved Resolution 25‑27 to increase the permanent loan for the Alamo Street Apartments, a new‑construction 271‑unit family project in Simi Valley, to $61,000,000.
Steve Gallagher, deputy director of multifamily programs, told the board the project — developed by Pacific West Communities with US Bank as construction lender and tax credit investor — experienced construction delays and higher financing costs. "The new permanent loan amount that we're recommending today is a $61,000,000 permanent loan," Gallagher said, and added that underwriting shows increased income during operations and that "the blended perm rate of 5.15 is locked." Gallagher also said the developer would defer about "$605,000" of developer fee to residual receipts to help cover the gap.
Board members asked about community outreach and underwriting assumptions. Director Russell and others pressed staff on public engagement; Gallagher said CalHFA relies on localities and the developer to perform outreach and noted HUD risk‑share posting and public comment on the CalHFA website occurs for such projects. Gallagher said operating expenses were verified against a current appraisal and that reserves were increased in underwriting.
John Nicholas, representing Pacific West Communities, said scale from other nearby projects (another 240 units the developer has planned) helps absorb costs across the portfolio.
After discussion the board moved, seconded and approved Resolution 25‑27 by roll call.
The increase represents a roughly 25% rise above the originally approved permanent loan amount and follows an earlier executive‑level increase that brought the loan to $52,000,000 during construction.
