When Community Housing Improvement Program (CHIP) set out to rehabilitate a decades-old affordable housing community in Chico, California, the path forward wasn’t clear. A new, untested state funding program created uncertainty for lenders and left the project at risk of delay. NeighborWorks Capital stepped in early, providing both the financing and partnership needed to bring the East of Eaton rehabilitation to life.
A $19 Million Investment in Community
Built in 1992, East of Eaton is a 76-unit affordable housing community serving low-income families. After more than 30 years, the property needed substantial rehabilitation. NeighborWorks Capital, in partnership with Century Housing, provided a $19 million construction loan to preserve the deep affordability while supporting upgrades that enhance safety, accessibility, and overall quality of life. This major rehab for East of Eaton addresses critical needs for residents and the broader community.
Navigating a New Funding Landscape
CHIP pursued financing through California’s Portfolio Reinvestment Program (PRP), a promising initiative aimed at preserving existing affordable housing. But because PRP was a new program and not a traditional LIHTC deal, most lenders were hesitant to engage, uncertain about repayment, timing, and requirements. CHIP was left without a clear path forward to fund the East of Eaton rehabilitation.
NeighborWorks Capital stepped in at a critical moment, offering both financing and strategic guidance. Staff participated in planning sessions with the California Department of Housing and Community Development, collaborated with additional partners, and worked closely with CHIP to navigate the complexities of the new program. Their proactive, hands-on approach turned an uncertain situation into a feasible solution, enabling the revitalization of East of Eaton to move forward.
The Impact on Residents and Community
The rehabilitation project preserves 76 affordable townhome units, maintains deep affordability through California’s PRP, and improves critical infrastructure, from roofs and windows to sidewalks, playgrounds, and landscaping.
“We are extremely grateful for NeighborWorks Capital’s partnership on our East of Eaton rehabilitation project. Because we were using a new funding program with untested guidelines, it felt a little risky in the beginning. They were a tremendous thought partner when we were putting the deal together, pulling in additional partners and helping think through the financing structure of a new funding source.”
Strengthening Rural Communities Through Partnership
Based in Chico, CHIP serves seven counties across Northern California and has developed more than 2,850 housing units since its founding. Recognized as an innovator and leader in rural housing, CHIP has been a trusted NeighborWorks Capital partner since 2015. Together, the organizations have advanced three projects and navigated periods of funding uncertainty to preserve and expand affordable housing opportunities. The East of Eaton rehabilitation exemplifies what’s possible when partners commit to early engagement, innovative financing, and community-centered outcomes, helping ensure that rural families have access to safe, high-quality, and affordable homes for years to come.
