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Council approves tax-free bond to renovate Bethel Towers

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Bethel Towers in Costa Mesa will likely continue to serve low-income seniors for the next 55 years, thanks to a $37-million, tax-free bond issued to an Irvine-based developer Tuesday.

The California Statewide Communities Development Authority required the City Council’s approval to float the bond to Reiner Communities because the 18-story apartment complex at 678 W. 19th St. is within the city’s jurisdiction.

The approval paves the way for massive renovations to the 45-year-old building, including installing a fire sprinkler system, new flooring and lighting, and other aesthetic upgrades.

The 269-unit property consists of studio, one- and two-bedroom apartments. The building’s federal assistance was set to expire in 2017, Reiner Communities Investment Director Sean Burrowes told the council in June.

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His company’s goal is to keep the building from going to market and pricing out low-income seniors, he said.

None of the property’s permanent tenants have to be relocated under Reiner’s ownership, and up to 20% of the apartments will be dedicated to very low-income residents, Burrowes added.


FOR THE RECORD:
An earlier version incorrectly said 20% of the apartments will be dedicated to low-income residents.


The property’s monthly revenue is about $80,000. After the renovations, and under Reiner’s ownership, Burrowes estimated monthly revenue would climb to $250,000 a month. The property will receive a different kind of federal subsidy than the funding it’s currently receiving.

If a tenant can’t afford the rent, federal money would cover the difference.

joseph.serna@latimes.com

Twitter: @JosephSerna

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