May 30, 2014
By Stephanie West
Salinas, Calif. – The AFL-CIO Housing Investment Trust (HIT) has invested $16.8 million for the $43.3 million rehabilitation of Gabilan Plaza Apartments, a multifamily development that has provided affordable housing to residents of Salinas, CA, for over 40 years. The all-union rehabilitation work is expected to generate more than 110 union jobs.
The HIT investment of union and public employee pension funds will help finance exterior and interior rehabilitation at the aging housing complex, which consists of 26 garden-style apartment buildings offering 200 rental units. All of the units are income restricted, with 10% designated for households earning up to 50% of the area median income and the rest reserved for families earning up to 60% of the area median income.
"To address the escalating demand for affordable rental housing, it is critical not only to build new units but also to preserve and maintain existing affordable developments such as Gabilan Plaza Apartments," said HIT Chief Operating Officer Ted Chandler. "The rehab work on this project should help ensure that residents of this Salinas community will continue to have access to quality rental housing, as well as meet modern energy efficiency requirements and create 'green' construction jobs for union members."
The United Brotherhood of Carpenters and Joiners Local 925 Housing Sponsorship Corporation was the original nonprofit sponsor for Gabilan Plaza, which was built under HUD's Section 236 subsidized housing program.
"The HIT's financing helps assure that the construction work on Gabilan Plaza will be done 100% union," said Ron Chesshire, Chief Executive Officer of the Monterey/Santa Cruz Counties Building and Construction Trades Council.
