Board

In 1994 Foundation for Social Resources, Inc. (FSR) was a fledgling non-profit without substantial assets or significant income. Our officers and directors were nevertheless anxious to make an impact in the local area by preserving apartment units for low income families. In spite of the lack of economic clout FSR, with the help of a cooperative seller, an aggressive statewide conduit issuer (California Housing Finance Agency now called CalHFA) and some creative bond financing was able to purchase Tara Village, a 170 unit apartment complex in the City of Cypress, CA. At the time of its purchase the property was conventionally financed and operating as a market rate complex. By virtue of the tax exempt financing FSR utilized to acquire it, 20% of the apartments were restricted to occupancy by households earning less than 50% of area median income. An additional 50% were restricted to households below 80% of area median. The transaction earned FSR the Mortgage Bankers Association of America Affordable Housing Certificate of Merit in 1994. Throughout the balance of the 90's however, the property struggled financially. Occupancy was steady, but income and rent restrictions (and increased operating costs associated with the on-site Family Resource Center operated by Project Access, FSR's sister organization) combined to limit cash flow needed to maintain the property. FSR reacted by advancing its own funds to address required repairs. In 2000 area household income improved. An on-site property management company change improved efficiency. These factors and the restructuring of subordinate debt combined to produce some cash flow. But as the property neared the end of its initial 10 year “lock-out” period required by the first trust deed holder, the organizations officers and directors had a decision to make.