LOS ANGELES — Standard Communities and Faring have formed a joint venture with plans to create more than $2 billion of middle-income housing across California over the next 18 to 24 months. The strategic partnership, Standard-Faring Essential Housing, will engage in both ground-up construction of middle-income rental housing and the acquisition and conversion of existing market-rate properties.
The partnership recently created more than 650 units of dedicated middle-income housing in Southern California with a total capitalization of over $400 million. The transactions utilized tax-exempt bond financing provided by CSCDA Community Improvement Authority, a state program that seeks to improve the availability of housing for Californians earning approximately the same as the area median income (AMI).
Upon taking ownership, CSCDA Community Improvement Authority worked with Standard-Faring Essential Housing as project administrator to immediately lower rents for new residents who qualify with incomes between 80 percent and 120 percent of AMI.
“By focusing on middle-income housing, California cities can ensure that middle-income families and essential workers such as first responders, hospital and healthcare staff, and teachers can afford to live near their jobs in the communities they serve,” says Jeffrey Jaeger, principal and co-founder of Standard Communities.
“This joint venture will provide cities across California desperately needed middle-income housing, without utilizing funding typically reserved for low-income and homeless housing,” adds Darren Embry, vice president of community development at Faring.
Based in New York and Los Angeles, Standard Communities has a national portfolio of over 15,500 multifamily units — including approximately 11,500 affordable and workforce housing units — and has completed more than $3 billion of affordable housing acquisitions and rehabilitations nationwide.
West Hollywood, Calif.-based Faring manages the construction of retail, hotel, self-storage, medical office, multifamily and industrial development projects. The firm also participates in acquisition, development and financing.
—Amy Works and Katie Sloan