CHI's management of the property commenced in August, 1998. Scope of renovation and financing for it were arranged in Spring, 1999 and deployed concurrent with purchase in June, 1999. Prior, a previous owner gave this property a cosmetic renovation that failed to correct substantive problems, notably condition of a chiller which failed in summer. The owner's response was inadequate and slow, causing a tenant revolt and litigation for failing to provide "safe, decent, sanitary housing". CHI was asked by the special master in a Federal court case to assume management during receivership of Cascade Park.
The overall value of the development was $3.7 MM, $1.2 MM in assumed debt to acquire the property and $2.5 MM to renovate it. The renovation was funded with a construction loan from Chase Bank. The assumed loan and the construction loan were later rolled into a new FNMA loan. No equity was needed.
CHI performed a major renovation of Cascade Park including retrofit to individual HVAC service. The development was handled turnkey by Shamrock Construction, an affiliate of the managing agent. Renovation was completed in stages as leases turned over and concluded Spring, 2000. The property was rededicated as Westlake Village June 1, 2000.
Debt has been refinanced three times since. Today, the property is full with a waiting list and is a valuable resource for working class families that choose to live in Mesquite.
CHI believes sale of this property would inevitably result in higher rentals and less quality housing and intends to hold it indefinitely with the objective of setting rentals to cover costs rather than trying to match market. Absent a change in those facts, it will be retained.
Westlake maintains a good relationship with the City of Mesquite and was heavily involved in recrafting their life-safety ordinance. Cascade Park came with a 36 unit project based HAP contract tied to a Walker Program LURA. The Walker Program LURA was terminated in 2010 by mutual consent with Inclusive Communities Project; this allowed CHI to non-renew the HAP contract and convert 36 residents to housing choice vouchers to enable them to relocate at will. Westlake Village accepts housing choice vouchers and has about 15% of its residents using housing choice vouchers.