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Transforming Affordable Housing in Bakersfield: CPP’s Acquisition of Sundance Apartments
Tuesday, March 04, 2025
Strategic Investment to Preserve and Enhance Housing for Low-Income Families
Community Preservation Partners (CPP), a mission-driven developer specializing in affordable housing preservation, has made a significant move into the Bakersfield real estate market. In collaboration with Bettencourt Properties and The Beneficial Housing Foundation, CPP has acquired Sundance Apartments, a 60-unit affordable housing complex located in Bakersfield, California. This acquisition represents not only an expansion of CPP’s footprint but also a crucial effort to address the affordable housing crisis in the region.
A $32.5M Investment in Community Preservation
The total investment for this project is approximately $32.5 million, with $20 million allocated for acquisition and $80,000 per unit earmarked for significant renovations. Built in 1981, Sundance Apartments had not undergone substantial rehabilitation until now. The property, consisting of ten two-story buildings and a single-story community space, is designed to house families in 40 two-bedroom and 20 three-bedroom units.
Why This Matters for Bakersfield’s Housing Market
Bakersfield, like much of California, faces an ongoing affordable housing crisis, where nearly one-third of residents spend over 30% of their income on housing. CPP’s intervention in preserving and enhancing Sundance Apartments ensures long-term affordability for low-income families.
Planned Upgrades: A Focus on Sustainability and Modernization
CPP’s renovation strategy includes a comprehensive modernization plan, focusing on energy efficiency, infrastructure updates, and resident experience. Key improvements include:
● Energy Efficiency: Replacement of solar panels, HVAC systems, electrical panels, and water heaters to reduce energy consumption.
● Interior Enhancements: Modernized kitchens and bathrooms, new flooring, and upgraded appliances.
● Exterior Improvements: Roof replacements, parking lot resurfacing, upgraded pathways, and enhanced landscaping.
● Community Upgrades: The on-site community room will undergo significant renovations to better serve residents.
Long-Term Affordability Commitment
One of the standout aspects of this acquisition is CPP’s commitment to long-term affordability. Originally, the property’s affordability restrictions were set to expire in 2027. However, under CPP’s stewardship:
● A renewed 20-year Section-8 Housing Assistance Payment (HAP) contract will be implemented.
● A new Land Use Restrictive Agreement (LURA) ensures affordability for an additional 55 years.
● All units will be income-restricted to families earning 60% or below the Area Median Income (AMI).
Financing and Strategic Partnerships
This project is supported by key financial and development partners:
● California Tax Credit Allocation Committee (CTCAC) – Allocated 9% Low-Income Housing Tax Credits (LIHTC).
● WNC & Associates – Serving as an equity partner.
● Banner Bank & Key Bank – Providing construction and permanent financing through Freddie Mac-backed lending programs.
Enhancing Resident Services
Beyond physical upgrades, CPP is committed to improving the quality of life for residents. Partnering with LifeSTEPS, the development will offer on-site adult education, health and wellness programs, and skill-building workshops. These services are designed to empower residents and provide long-term stability.
A Model for Future Affordable Housing Investments
CPP’s acquisition of Sundance Apartments serves as a model for preserving affordable housing in high-demand markets. With rising construction costs and increasing affordability challenges, preserving and enhancing existing affordable housing stock is crucial. This approach allows investors to maximize impact while ensuring long-term housing security for low-income families.
Looking Ahead: A Sustainable Future for Sundance Apartments
Renovations are slated for completion by the end of 2025. Upon completion, Sundance Apartments will be a modernized, energy-efficient, and community-focused affordable housing asset, ensuring that Bakersfield’s low-income residents have access to quality housing for decades to come.
Hi, I Am Sanjeev
REAL ESTATE BROKER / ENTREPRENEUR
Sanjeev Advani is a seasoned real estate entrepreneur and financial strategist from Bakersfield, California. Having built and sold his Company Synergy Property Management, he specializes in innovative investment solutions and portfolio growth. With a rich background spanning real estate, financial planning, and community leadership, Sanjeev brings a blend of tenacity, expertise, and visionary thinking to every endeavor. Dedicated to excellence and driven by a passion for empowerment, he is committed to guiding clients and communities toward success and prosperity.
