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CalHFA board approves $3.8 million permanent loan increase for 8181 Allison Apartments
Summary
The California Housing Finance Agency board approved resolution 2602 to raise the permanent loan for 8181 Allison Apartments in La Mesa to $24.485 million to close a construction funding gap driven by expanded solar scope, equipment delays and higher variable-rate construction debt.
The California Housing Finance Agency board on a roll-call vote approved a $3.8 million increase to the permanent loan for 8181 Allison Apartments, a 147-unit family development in La Mesa.
Catherine McFadden, CalHFA’s director of multifamily programs, told the board the project reached certificate of occupancy in July 2025 but faced a roughly $5.5 million funding gap driven by an expanded photovoltaic scope, elevator equipment delays and pacing issues with San Diego Gas & Electric energization. CalHFA previously approved a permanent loan of about $20.685 million in 2022; the developer requested raising that amount to $24,485,000 to close remaining costs. McFadden said the request is supported by increased net operating income, an appraisal and adjustments elsewhere in the capital stack, including additional tax-credit equity and greater deferred developer fee contributions.
Board members probed the financing and underwriting. One director asked whether the developer’s fee adjustments would affect tax-credit basis; McFadden said developer-fee treatment contributed equity while also meeting the 50% test required for tax-credit financing. Staff noted total NOI had grown by roughly $325,000 since 2022, enabling support for a larger permanent loan without underwriting concessions.
Developers and lenders on the presentation slides were identified as USA Multifamily Development (developer), KeyBank (construction lender) and WNC and Associates (tax-credit investor), with CalHFA as the permanent lender. McFadden said the blended permanent loan rate would be locked through closing and that closing was expected in March.
With no public commenters on the item, a director moved approval and the board adopted resolution 2602 by roll call. The chair said the motion carried; staff will report back with closing details once the transaction completes.
