The San Diego Board of Supervisors approved the issuance of tax-exempt bonds for the renovation of the Casa de Cortez Apartments complex.

The supervisors’ Feb. 26 vote authorizes up to $5,000,000 of bonds to be issued to Cortez Preservation Limited Partnership to finance the acquisition, rehabilitation, and development of the 32-unit complex in the 500 block of DeLuz Road.

Cortez Preservation Limited Partnership will obtain tax-exempt bonds issued by the California Statewide Communities Development Authority. The CSCDA was created to provide local governments, non-profit public benefit corporations, and private entities with access to low-cost, tax-exempt financing for projects which create jobs, help communities prosper, and improve the quality of life for local residents.

The jurisdiction in which the project is located must approve the project and the financing in order for the CSCDA to issue the project’s financing mechanism. "As long as they have a public benefit project they can try to access the tax-exempt marketplace," said Joan Pan, the finance manager for the county’s Finance and General Government Group.

The CSCDA is a joint powers authority whose members consist of more than 500 cities, counties, and special districts. The CSCDA has the statutory authority to issue bonds, notes, or other financing documents in order to promote economic development, including the provision and maintenance of multi-family housing.

Since its inception in 1988 the CSCDA has issued more than $50 billion of tax-exempt bonds, including approximately $2 billion Advertisement

[ Pala Mesa Resort ] within the County of San Diego which has led to the establishment of more than 3,400 affordable housing units.

In May 2012, the county supervisors approved the issuance of up to $4 million of tax-exempt obligations to Casa Fallbrook Limited Partnership for the acquisition and rehabilitation of Casa de Cortez Apartments. Those bonds were never issued, and since then ownership of Casa de Cortez Apartments has changed to Cortez Preservation Limited Partnership.

Cortez Preservation Limited Partnership is based in California and was formed by Preservation Partners Management Group, which plans to manage Casa de Cortez Apartments. Preservation Partners Management Group is affiliated with Preservation Partners Development, LP, and specializes in senior and multi-family affordable housing. Preservation Partners Development acquires, rehabilitates, and preserves "at risk" affordable housing resources originally developed under U.S. Department of Housing and Urban Development financing and direct rental subsidy programs.

The low-income housing at Casa de Cortez Apartments will be limited to families with incomes of up to 60 percent of the area median income.

Cortez Preservation Limited Partnership will renovate the six two-story buildings. The 32 units range from one to three bedrooms, and the complex also has a children’s playground, a basketball court, and a laundry facility.

The county’s approval of the bonds does not make the county liable for any financial obligations. The CSCDA rather than the county will issue the bonds, and Cortez Preservation Limited Partnership is responsible for their repayment.