Washington Square Iii was developed and operates with Federal housing financing. The property utilizes 3 Federal housing programs to make rent affordable to lower income tenants. These programs are Low Income Housing Tax Credit, HOME, and Project Based Sec. 8.
Washington Square Iii has a project-based Section 8 contract. 40 of the 53 total units at the property receive Section 8 assistance. This means that 75% of the renter households in the property pay no more than 30% of their adjusted income for rent.
The current Section 8 contract was effective on June 01, 2007 and the contract expires on May 31, 2027. The Section 8 contract rent is 110% of the Fair Market Rent for the area. According to the HUD Multifamily database, the fair market rents for the area are $815.00 for One Bedroom, $1,026.00 for Two Bedroom, $1,495.00 for Three Bedroom, and $1,791.00 for Four Bedroom.
28% of California properties and 26% of all properties across the country have Section 8 rental subsidies. See the Rent Subsidies section for more.
Low Income Housing Tax Credit
The property was developed using the Low Income Housing Tax Credit Program. This program incentivizes investors to inject capital into rental apartments for lower income Americans. The property received a tax credit allocation in 2007 for $570,120 with a 10 year value of $5,701,200. The property was placed in service in 2008. 53 of 53 units at Washington Square Iii are low income and subject to the tax credit program. The property, at the time of the tax credit allocation, was located in a Qualified Census Tract and a Difficult Development Area qualifying it for additional tax credit financing.
HOME Investment Partnership
The property was financed in part with financing through the Federal HOME Investment Partnership Program. 53 of the 53 total units at Washington Square Iii are assisted under the HOME program. It received $1,138,000 ($21,472 per unit) in financing through the HOME program.