April 18, 2023–OAKLAND, CA
Congratulations to the Housing Authority of San Luis Obispo (HASLO) on the financing closing for the acquisition and rehabilitation of the Anderson Hotel in downtown San Luis Obispo. The project will contain 66 studio and one-bedroom units to be rented to households earning less than 30 – 40% of AMI.
Decades in the making, HASLO’s acquisition of the Anderson Hotel comes as the organization has managed the property since the early 2000s as privately-owned affordable housing for seniors and households with disabilities under a contract with the federal department of Housing and Urban Development. The housing authority’s acquisition of the building itself earlier this year was made possible in part by the state’s Project Homekey program, which provides funding for local entities to acquire existing properties (including hotels and existing apartment buildings) to house Californians experiencing or at-risk of homelessness. The acquisition ensures that its affordable units will not be lost to the private market.
As part of Merritt’s investment, HASLO will also rehabilitate the building, which was originally built as a hotel in the 1920s, including major seismic upgrades, system improvements, window replacements, improvements to circulation, and ADA/code upgrades. After completion, all units will continue to be rented as affordable housing to low-income households, including 40 units of permanent supportive housing targeted to households experiencing and at-risk of homelessness.
“We are thrilled to close on the Anderson Hotel Apartments and continue to serve the San Luis Obispo community. The rehabilitation of Anderson Hotel and partnership with Project Homekey will keep these 66 homes affordable and accessible,” said HASLO Executive Director, Scott Collins. “We are grateful for our continued partnership with Merritt as we close another project with them and look forward to working together again to support the SLO community.”
HASLO has been serving the San Luis Obispo area since the 1960s and was designated as a “High Performer” housing authority by the US Department of Housing and Urban Development for the high-quality services it provides to tenants. Merritt is thrilled to continue our ongoing relationship with the housing authority, building on our recent $5.6 million investment in HASLO’s Shell Beach Senior Apartments in Pismo Beach, which started construction in late 2022.
Merritt Community Capital Corporation is proud to provide $30.8 million in tax credit equity capital to create new affordable housing in San Luis Obispo. Thank you as well to our financing partners at Pacific Western Bank, the state Department of Housing and Community Development, the City of San Luis Obispo, and San Luis Obispo County. The project is expected to complete construction in 2024.
As California’s nonprofit housing tax credit syndicator, Merritt is proud to work with HASLO and organizations like it to retain the state’s supply of affordable units and support new, innovative government efforts to house homeless households quickly through Project Homekey.
Contact David Dologite – Director of Acquisitions to learn about Merritt’s equity solutions for your project.
About Merritt Community Capital Corporation
Merritt Community Capital Corporation is a nonprofit dedicated to our mission to provide equity capital for affordable housing exclusively to California. We do this by partnering with mission-aligned affordable housing developers throughout the state to ensure the most critical communities are developed and maintained for low-income residents. Since 1989, Merritt has created and/or preserved 11,000 affordable homes, through investing over $1.2 billion in 26 separate funds, providing housing for over 29,700 people.