Developer: The Unity Council and Eden Housing
Housing Trust Loan: $4.3M Construction-to-Permanent Loan and $1.9M Permanent Loan
Units: 75 Affordable Homes
Population Served: Families and Veterans
Congratulations to The Unity Council and co-developer Eden Housing on closing construction financing for 2700 International, a 75-unit affordable housing community serving families and formerly homeless Veterans earning between 30% and 60% AMI.
Our financing approach helped streamline the capital stack by offering coordinated support at different stages of the project – from construction through permanent conversion and Affordable Housing Program (AHP) support – reducing complexity and supporting the timely delivery of much-needed affordable housing.
As a creative, catalytic lender, Housing Trust is uniquely positioned to leverage our tools to craft tailored solutions for our partners. We initially supported the project with a $4.3M construction-to-permanent loan through our Apple Affordable Housing Fund. The developers also asked us to explore serving as the permanent lender, given that smaller permanent loans can be challenging to source from conventional banks. Housing Trust was glad to step in with an additional $1.9M, resulting in a combined $6.2M first position permanent loan at conversion.
Housing Trust also provided a coordinated financing solution that supported the project’s long-term stability and helped the developers access additional funding through the Federal Home Loan Bank’s (FHLB) Affordable Housing Program. As a recent FHLB member, we were able to support the developers in submitting an AHP application – the first AHP application submitted by Housing Trust since becoming an FHLB member – creating an opportunity to bring additional resources to the project.
Located in Oakland’s Fruitvale neighborhood, 2700 International will include 22 units set aside for formerly homeless veterans, with 19 supported by HUD-VASH (Veterans Affairs Supportive Housing) vouchers administered by the Oakland Housing Authority. The development will also feature below-market-rate commercial space, a community garden, a children’s play area, and sustainable design targeting GreenPoint Rated Gold certification.
The project site was purchased in 2020 as part of The Unity Council’s strategic vision to create neighborhood hubs that co-locate and connect services throughout the Fruitvale neighborhood. After receiving entitlements in 2021, securing tax credits and reaching the start of construction marks a major milestone following more than five years of work.
The Unity Council is a nonprofit Social Equity Development Corporation with more than 60 years of history serving Oakland’s Fruitvale neighborhood. Housing Trust is also proud to support The Unity Council through our Capital for Capacity program, which helps community-based housing developers strengthen organizational capacity and expand long-term access to capital for affordable housing development. With this loan, we have now partnered together on 2 projects totaling $8.2M invested to help create more than 250 affordable homes.
Our collaboration with Eden Housing, co-developer of 2700 International, spans more than two decades. Since 2003, we’ve closed 22 loans together totaling $81M invested, helping create more than 1,400 affordable homes for individuals and families in the greater Bay Area.
The Apple Affordable Housing Fund is part of the comprehensive $2.5 billion commitment Apple made in November 2019 to help address the housing availability and affordability crisis in California. Apple’s commitment includes a $150 million investment in the Apple Affordable Housing Fund with Housing Trust Silicon Valley. Housing Trust implements the fund by making loans to qualified developers to help accelerate affordable housing construction across the Bay Area.