Private primary financing totaling $3,075,000 has been arranged by City Bond & Mortgage Corp., a Pasadena mortgage banking firm, through Mercury Savings & Loan Assn. to assist in the development of 85 affordable rental units in the Temple-Beaudry and Hollywood Hills revitalization areas of Los Angeles.
The financing projects were executed in concert with the Los Angeles city Community Redevelopment Agency (CRA) and the Rental Housing Construction Program (RHCP) of the state Department of Housing and Community Development. Both agencies are providing deferred, low-interest rate secondary financing.
One project, at 417 N. Mountain View Ave., will contain 21 one-bedroom units for low- and moderate-income tenants. Mercury's financing comes to $400,000. A second project, at 419 N. Bonnie Brae Ave., will provide 44 one- and two-bedroom rental units; Mercury's construction loan is for $1.85 million. The third project, 6337 N. Primrose Ave., will provide 20 one-bedrooms units and Mercury's construction loan is for $835,000.
A special Community Investment Fund (CIF) established by the 11th District Federal Home Loan Bank has allowed Mercury to offer a below-market rate to the developer. Also, "gap" financing by the CRA was involved.