Blighted Motel Conversion
to Affordable Housing
The
former Executive Lodge motel was an ideal environment
for criminal activity to flourish under the hood of
a dilapidated and neglected motel. Owner indifference
contributed to the structures becoming housing for
the community's criminal element, with low-income
families and children caught helplessly in the middle.
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New rehabilitated pool at
the Promenade.
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Newly rehabilitated into a clean, safe, affordable
housing community, the 25-year old building sits on
what was once considered a prime commercial location.
The motel was originally an Ambassador Inn. It succumbed
to financial instability during the recession and
the loan went to the RTC before being purchased by
a private, foreign investor who renamed it Executive
Lodge. Located on a medium traffic artery running
parallel to a major interstate freeway, the property
is highly visible from the freeway. It consisted of
seven two-story buildings comprising 219 motel rooms.
Before
After
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When National CORE, bought the property in April
1997 it had become a haven for crime. More than 200
police calls were responded to annually at the property.
Drug activity, prostitution and violent crimes were
prevalent. A few months before closing escrow, a child
molester moved into the property and a maintenance
worker was found in a utility closet murdered.
Only approximately 100 of the 219 units
were habitable. The remaining units were in various
states of disrepair. Considered
the city's toughest rehabilitation project, National CORE was selected and given the task of rehabilitating
the property.
Because of the urgency to address the deplorable
conditions, the City Council and the Redevelopment
Agency made the decision to commit a total $5.5 million
in tax allocation bond proceeds to the project.
Sanwa Bank provided a $2.75 million construction
loan and tax credit equity of $1.5 million. Approximately
$750,000 of the tax credit equity was provided up-front
and applied toward the construction costs. After construction
was complete and the property was 90% leased for three
months, the remainder of the tax credit equity was
funded. National CORE added the balance of the tax
credit equity with a $2 million tax-exempt permanent
loan from Washington Mutual Bank and a $214,000 AHP
loan from Federal Home Loan Bank of San Francisco
to pay off the construction loan. Total development
cost of the project was approximately $9.2 million
or less than $74,000 per unit, well below the average
cost for comparable projects in Southern California.
Before
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Pool Area Before
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After
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Pool Area After
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As part of the site re-use plan, the 219 motel rooms
were converted to 124 apartment units including 28
studio and 96 one-bedroom apartments. Three
units are wheelchair accessible. The apartments boast
new architectural treatments, roofs, stucco and paint,
appliances and cabinets, flooring, carpet, plumbing
fixtures, window coverings, and security gates. Amenities
added include a tot-lot, community room, learning
center equipped with computers, leasing office, and
refurbished pool and pool area.
All the apartments are leased under an affordable
housing program. Qualified residents earn 60% or less
of the median income for Los Angeles County. Most
residents are couples, single-parents, or seniors.
To ensure the property does not fall into the same
pattern of social blight, National CORE made certain
the project was properly underwritten and well managed.
Within 90 days after the Grand Opening, the property
was 98% leased, with a waiting list of more than 400
applicants. What was once a haven for crime and an
eyesore in the community is now a beautiful, clean,
and safe community that will give shelter to more
than 100 families, children, and individuals that
have previously struggled with the high cost of housing.
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"The
transformation is incredible."
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site used to be the blight of this community.
It's inspiring to see how beautiful the apartments
look now and I'm glad to see so much support here
today from the people in the community." |
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--Mayor Pro Tem Steve Herfert
at the Grand Opening of The Promenade apartments
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To request more information on National CORE's Revitalization Plan click Here.
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Promenade
West Covina, California
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124 Units
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1333 West Garvey Ave. North
West Covina, CA 91790
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