SAN JOSE, Calif., Jan. 5, 2016 /PRNewswire-USNewswire/ -- The AFL-CIO Housing Investment Trust (HIT) today announced a $24.9 million investment in the rehabilitation of the Casa del Pueblo apartments, a 165-unit, 12-story building in San Jose's Central Business District that provides affordable housing for seniors. The project will create an estimated 218 union construction jobs.
The rehabilitation project will completely refurbish all the units, including providing new appliances, windows, doors, floors and ceilings. The building, which was constructed in 1976, is located at 200 South Market Street.
"The HIT is pleased to help sustain the supply of affordable housing for senior citizens in San Jose," said Stephanie Wiggins, HIT's Executive Vice President and Chief Investment Officer. "This project demonstrates the kind of partnerships that can be forged so that our seniors can have safe, affordable housing they can depend on."
The lead developer is Preservation Partners Development (PPD), a California based development group specializing in the acquisition, rehabilitation and preservation of affordable housing developments assisted by the U.S. Department of Housing and Urban Development and California Housing Finance Agency. The Blach Construction Company of Santa Clara is the construction firm and will utilize 100 percent union labor. Red Mortgage Capital, LLC, the mortgage lender, has worked on a number of HIT transactions in recent years. The building is owned by United Food and Commercial Workers International Union Local 5 and has served as its long-time headquarters.
"The Casa del Pueblo redevelopment has been worth all the time and effort to put this very complicated project together," said John Nunes, United Food and Commercial Workers International Union Local 5. "This was attributable to our great partnership between Local 5 and the AFL-CIO Housing Investment Trust, which will continue to protect affordable housing for low income seniors and create hundreds of good paying union construction jobs."
Gerald Pfeiffer, Business Manager, International Brotherhood of Electrical Workers Local 332, also voiced his support, "IBEW 332 appreciates the investment in jobs the Housing Investment Trust has made with Casa del Pueblo."
About the HIT
The AFL-CIO Housing Investment Trust (HIT) is a fixed-income investment company registered with the Securities and Exchange Commission. It manages over $5 billion in assets for over 370 investors, which include union and public employee pension plans. The HIT invests primarily in government and agency insured and guaranteed multifamily mortgage-backed securities. The HIT is one of the earliest and most successful practitioners of socially responsible, economically targeted investing, with a track record of over 30 years that demonstrates the added value derived from union-friendly investments. The investment objective of the HIT is to provide competitive returns for its investors and to promote the collateral objectives of constructing affordable housing and generating employment for union members in the construction trades and related industries. Since its inception, the HIT has invested nearly $8.5 billion (in current dollars) to finance more than 100,000 units of housing nationwide, generating 75,000 union jobs. More information is available on the HIT's website, www.aflcio-hit.com.
Michael K. Frisby
SOURCE AFL-CIO Housing Investment Trust