Orange Senior Housing Inc

During 2024, OSH continued in its role as the managing general partner of the Triangle Terrace Affordable Limited Partnership (the LP), which owns a 75-unit senior affordable apartment community that was constructed for OSH in the 1980s, then recapitalized into a tax credit partnership and renovated during 2015-2016. A wholly owned, for-profit limited liability company (LLC) represents OSH in the LP. There is a staff services agreement between OSH and its subsidiary LLC. There were no extraordinary events in the operation of the property during 2023. Tenant occupancy exceeded 95%. A Resident Services Coordinator assists the low-income elderly residents to live independently for as long as practical before moving to housing that provides care; the RSC is funded by a grant from HUD. The subsidiary LLC collects (i) an annual partnership management from the LP and (ii) 50% of surplus cash from the operation of the property. The LLC pays OSH a staff services fee. OSH also collects an annual interest-only payment from the LP for its $1.5 million purchase money loan to the partnership. OSH also continued the process of co-developing a new community of senior affordable apartments named Katella Terrace on 1.54 acres of land that is owned by the City of Orange. Entitlement for plans to construct 74 apartment homes on the site was approved by the Orange City Council in September 2019. In December 2022, the California Tax Credit Allocation Committee (CTCAC) awarded the project state and federal tax credits with an estimated value of $26,974,000, which completed the financing plan for the project. In February 2023, architectural and engineering plans were completed, and an application for a building permit was delivered to the City of Orange. In June 2023, the City of Orange issued a permit for construction; and in July, general contractor Portrait Construction, Inc. (Portrait) commenced the construction of underground utilities for the project. In January 2024, wood framing for the apartment building began. On December 23, the Architect issued a Certificate of Substantial Completion for the building. Occupancy of the building will follow the testing and approval of all fire and life safety systems by the City of Orange.