Sequoia Standard is the source for new and exciting real estate developments, specializing in affordable residential and mixed use market rate residential / commercial real estate. Sequoia Standard works in concert with governmental agencies and large national development firms to create pristine properties throughout California. The principles of Sequoia Communities have an extensive track record in developing apartment developments.
Our success lies in our unique ability to seek out and acquire properties throughout California that are competitive locations to receive funding for affordable multi-family units in addition to locations that are suitable for higher end market-rate apartments. These units are built using many different types of federal, state, local funding programs and private lending sources. We have experience using Tax Credits, Tax Exempt Bonds, CDBG, HOME, MHP, California Housing and Community Development funds, and AHP Funds.
Tax credits and/or bonds are the main source of equity for the developments allowing them to remain well funded and affordable for the fifty-five year life of the community. The federal low income housing tax credit program was established in 1986 by Section 252 of the Tax Reform Act and was codified as Section 42 of the Internal Revenue Code of 1986. This Act provided tax credits for the development of workforce housing under the direction and allocation of the individual states. Each state has a designated Tax Credit Allocation Committee, which administers the allocation of the credits through the Qualified Allocation Plan. The times and dates of the application process are reviewed and revised by the Committee annually.
Sequoia Standard has been successful at acquiring properties that meet the very competitive and stringent requirements that are set forth by the Tax Credit Allocation Committee and other affordable housing funding bodies. Sequoia Standard initiates a property search to locate potential properties based on these published criteria. Upon identification of a potential site, Sequoia Standard performs financial analysis’s, clarifies the status of and processing the government entitlements for the zoning, and related requirements for multifamily housing, such as conditional use permits, site suitability, location, neighborhood, entitlement procurement, impact fees, etc. Once under contract the property is submitted to the State of California for State and Federal Tax Credits or to the California Debt Allocation Committee to apply for Private Activity Tax Exempt Bonds.
The same extensive research is also needed for locating suitable sites for market rate apartments. Many different criteria must be met to ensure the site and design will produce a popular apartment community for many decades to come. The main criteria is finding a neighborhood that has competitive rent levels and also amenities in the area, such as shopping and entertainment, that will be appealing to future residents. In addition, the local planning jurisdiction must be amenable allowing enough density to enable the design to be financially feasible.
Even though the current real estate market is very tough for finding exceptional apartment sites, using unique ideas and innovative concepts there will always be solutions to meeting California’s enormous need for new high quality housing.