by J.K. YAMAMOTO
Hokubei Mainichi

House Speaker Nancy Pelosi visited San Francisco Japantown on Sept. 1 to help celebrate the preservation and renovation of Nihonmachi Terrace.

Through the efforts of several public and private agencies, the seven-building, 245-unit property is undergoing a $25 million rehabilitation, scheduled for completion in 2010, and will continue to serve as affordable housing at least until 2064.

Built in 1975 by JARF (Japanese American Religious Federation) Housing Inc., Nihonmachi Terrace has about 400 residents, including seniors and families. It includes the 15-story Hinode Tower, which contains 145 units; a three-story building with 30 units; and 18 houses with over 70 units. The units range from studio apartments to four-bedroom townhouses.

Will Tsukamoto, president of JARF Housing, noted, “It has taken us over two years to get to where we are now, and it will be another 15 to 18 months before work is complete.
When we started, the country’s economy was seemingly robust ... then seemingly overnight, the Greenspan-inspired gilded age ended in a freefall.”

He thanked the Low-Income Investment Fund, predevelopment lender; Citibank California, construction and permanent lender; and Enterprise Community Partners Inc., investor and limited partner, all of whom “did not abandon us during this crisis.”

Explaining the key role that Pelosi played, Tsukamoto said, “Until the speaker of the House inserted two very important sentences into ... the Housing and Economic Recovery Act of 2008, we had a very big problem.

“Less than half of the residents are assisted by Section 8, and most unassisted households paid a very high percentage of their incomes for rent. Without the increased rental income provided by Section 8, the scope of repairs that we could afford would be very modest.

“This legislation, however, not only permitted us to significantly increase the rehab budget, but at the same time reduced rates to affordable levels for many of our low-income seniors.

“For this and for the support she has given to the development and preservation of affordable housing in San Francisco and throughout the country, we are most grateful.”

(Section 8 is a rental voucher program that allows low-income families to live in privately owned rental housing. The Public Housing Authority pays the landlord 80 to 100 percent of the fair market rent.)

Speaking on behalf of the residents, 91-year-old Miyeko Kanoh expressed appreciation to
Pelosi, saying, “We have a long time to live all together.”

Tsukamoto and Kanoh presented Pelosi with a flower vase as a token of gratitude.

‘Thriving JA Community’
Pelosi said she has been working on affordable housing issues in San Francisco since she arrived in Congress in 1987. “Our goal was always to be able to lower costs so that we would have affordability and people would have the dignity of the shelter that they deserve. It’s tough, because as you know San Francisco is an expensive place.”

Working with community organizers like Buck Bagot, who emceed the celebration, Pelosi has fought to preserve the low-income housing tax credit, which started the same year she took office.

“So much of the housing that we have could easily revert to market rate ... and that really undermines what we are trying to do, to keep people in their homes or put them into homes at affordable rates,” she said. In the case of Nihonmachi Terrace, “as speaker I had a special opportunity to be able to tack a couple of sentences into the bill that preserved this affordability for 55 years.”

(Affordable housing financed with federal tax credits must be affordable for at least 55 years.)

Pelosi told the residents, “This is a celebration of you. You are inspiration, you are
motivation, you are a measure of success, and you make me very proud to represent you in the Congress of the United States and to serve you as speaker of the House.”

The gift she received will serve as “a constant reminder of how blessed we are to have this thriving Japanese American community in San Francisco ... and of the community effort that brought us all together today,” she said.

“Over three decades, Nihonmachi Terrace has stood for more than just a simple set of homes,” Pelosi added. “It is in the heart of Japantown. It has meant more than just bricks and mortar to this community. This place is about preserving homes, respecting dignity, honoring the bonds of history from generation to generation. We’ve talked about the past; this is now about the future.”

Asked in a brief interview how she was able to get the funding for Nihonmachi Terrace, Pelosi explained, “The construction that comes with the rehab of Nihonmachi Terrace ... that’s creating jobs and it’s creating housing and it’s growing the economy, and at the same time we did the right thing. So it met our standards of job creation.”

The rehabilitation includes replacement of roofs, landscape upgrades, Americans with Disabilities Act (ADA) upgrades, repairs to unit interiors, window replacement, building waterproofing, elevator modernization, life safety systems retrofit, exterior repainting, security upgrades, and renovation of office and common areas.

‘80 Years of Affordability’
Representing the San Francisco Redevelopment Agency, the bond issuer for the rehabilitation, was Executive Director Fred Blackwell. He was joined by Deputy Executive Director Olson Lee and four members of the Redevelopment Agency Commission, including President Ramon Romero.

“Nihonmachi holds a very special place in our hearts at the agency because it was one of the first affordable housing that we worked on in the A2 or Western Addition area,” Blackwell said. “It represents to us not only that early commitment but ... the ongoing commitment to affordable housing.

“This was developed in 1975 and has not been really rehabilitated since that time. The rehabilitation dollars that are being put into this right now will extend the affordability of Nihonmachi for another 55 years, so that represents over 80 years of affordability for housing for folks in this community.”

Nancy Andrews, president of the Low-Income Investment Fund, noted that her organization made a loan to the Nihonmachi Terrace project two years ago. “None of us had any idea that a year later we would enter into one of the worst financial situations the country has ever seen, and that we would face a capital freeze,” she said.

“But I’m thrilled to be able to say to you to today that despite that, and thanks to the spirit of the people who live at Nihonmachi, to the board, to our partners, Enterprise, Citigroup, and especially to the work of Speaker Pelosi, this project is a glowing
success and we as the predevelopment lender now have been repaid.”

Rebecca Macieira-Kaufmann, president of Citibank California, said the celebration was particularly meaningful for her as a fourth-generation San Franciscan who has visited Japantown all her life.

“Through this project, Nihonmachi Terrace will become completely renovated, from the windows to the carpets to new paint, and everyone will be able to stay in their homes while we do this, providing residents with even a better place to call home,” she said.

“Citi is delighted to be involved with this renovation and proud we were able to help. With financing provided in part by Citi community capital, Nihonmachi Terrace will significantly upgrade its facilities while its rents will remain affordable. ... Affordable housing like this is so critical in San Francisco.”

Green Construction
Doris Koo, president and CEO of Enterprise Community Partners, said, “We brought $8 million in investment capital to the low-income housing tax credits, helping preserve Nihonmachi Terrace. ... Our investment came from a very successful program that has been in place since 1987 and has been responsible for building 2 million affordable housing units around the country.”

She congratulated everyone involved in the project, including the residents: “You’re 400 strong and you generated tons of letters to appeal for help from your members of Congress and particularly Speaker Pelosi. ... Because of Speaker Pelosi’s intervention and leadership, we gave ... every single one of the residents the hope to have decent, affordable housing for years and years to come.”

Koo added that the project is “green” and will “cut down on carbon emissions and give the residents a healthy living environment.”

Efforts are being made to use non-toxic, energy-saving and recycled materials for the renovation. Energy-efficient enhancements include Energy Star appliances in the apartments, dual-pane window installation, water-conserving plumbing fixtures, and installation of a combined heat and power (CHP) system that will generate electricity while harvesting heat for reuse.

Describing Pelosi as “the second most powerful elected official in America,” Bagot said, “Despite these monumental responsibilities, she never fails to serve the needs of everyday folks like you, the poor and working people who live at Nihonmachi Terrace. ... She remembered Nihonmachi Terrace, and when you needed help, she gave it.”

Financing was also provided by the U.S. Department of Housing and Urban Development (HUD) and the Federal Home Loan Bank of San Francisco.

Recognition was also given to the contractor, Cahill Contractors Inc.; the architect, Kodama Diseno Architects and Planners; and the property manager, The John Stewart Company, which is also a general partner with JARF Housing.