KDF pioneers the use of a residual receipts loan in California.

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Casa de la Villa is a 75-unit affordable multi-family apartment community located within a new master-planned civic center in the city of Corona, California. With the property being located in such a high-profile location, it was important to the City that the property be designed and built with the highest quality. The property was completed in 2007 and has received widespread praise for its design and how significantly it has improved the condition of the neighborhood. 

The Property is a three-story garden-style built with wood-frame and stucco, and slanted Spanish tile roofs. The community includes two- and three-bedroom units, private balconies/patios, laundry facilities, playground, pool, courtyard areas, and approximately 2,000 square feet of community space with an on-site leasing office. All 75 units are restricted to tenants earning 60% of Area Median Income or less.

KDF took over the construction of this property from another developer who could not obtain the necessary financing. KDF used a unique financing structure that allowed the Corona Redevelopment Agency (RDA) to pledge affordable housing funds so that KDF could obtain a residual receipts loan to be used for project development costs. KDF worked with CSCDA to use the RDA’s annual pledge to finance a $5.3 million tax-exempt loan used to finance project development costs. KDF was the first developer in the State of California to use this type of financing structure through CSCDA.