ROEM Assumes Market-Rate Developer Affordability Obligations
ROEM Corp has found a way to make affordable housing development a meaningful contributor to a builder’s bottom line with a unique financing structure at Charlotte Park Apartments in San Jose. (To hear more about multifamily development, check out Bisnow’s Silicon Valley Multifamily and Mixed-Use event July 28.)
The general contractor built 200 homes at the 295-acre former home of Hitachi Global Storage Technologies. ROEM EVP Alex Sanchez says the builder has a unique relationship with market-rate developers. “While inclusionary housing policies provide a major source of funding for affordable housing, they can significantly reduce a developer’s return and create long-term obligations,” he says. ROEM assumes market-rate developers’ affordable housing obligations and pays the in-lieu fees while designing and building high-quality affordable housing, he adds.
The $46M apartment complex is financed by Citi and Alliant. “Charlotte Park provides a safe haven to those who are being squeezed out of quality housing in Silicon Valley,” says Citi director Jay Abeywardena. “We are excited to help support this initiative and believe this project will have a meaningful impact on the community.” Alliant contributed $15M.
Charlotte Park is slated for completion by the end of June and is fully leased.