-Editorial
The Calexico City Council approved a Loan Repayment and Modification Agreement between the city and the De Anza Hotel Limited Partnership, formalizing repayment terms and aligning the city’s prior financial assistance with a new state financing structure for the De Anza Hotel affordable housing project.
City Manager Benjamin Martinez recommended the agreement’s approval, stating it will ensure consistency with the financing requirements of the California Department of Housing and Community Development (HCD). The De Anza Hotel, built in 1931, is considered a defining structure in Calexico and has functioned as senior housing since its conversion in 1998 by Chelsea Investment Corporation and Pacific Southwest Community Development Corporation. The property includes 94 single-room occupancy units, one of which is reserved for an on-site manager, and houses seniors earning 30% to 50% of the area median income. Average rent is about $500 per month.
The building includes on-site amenities such as a courtyard, balcony, meeting room, leasing office, laundry facilities, and outdoor barbecue area. It also features 14,000 square feet of commercial space divided into 10 units, occupied by long-term tenants including the Cultural Arts Center.
Financing for the 1998 rehabilitation included low-income housing tax credits, an HCD rehabilitation loan, and loans from the former Calexico Community Redevelopment Agency. A partial repayment of $105,946 previously reduced the principal on the local loans. In 2010, following a 7.2-magnitude earthquake that displaced more than 100 residents, the city issued a $760,000 Community Development Block Grant loan for critical repairs.
The De Anza Hotel project was recently awarded $13.5 million under HCD’s Portfolio Reinvestment Program for major rehabilitation work identified through a 10-year physical needs assessment. Planned upgrades include new counters, cabinets, sinks, refrigerators, flooring, windows, roofing improvements, LED replacement of the historic rooftop signage, installation of a second elevator, refurbishment of the existing elevator, replacement of HVAC units, and electrical improvements. Interior and exterior walls will also be repainted.
Accessibility improvements include a new gate to meet Americans with Disabilities Act standards, new handrails, non-skid surfaces, upgraded mailboxes, and full accessibility renovations for five units. Audio-visual doorbells will be installed in two units to meet state building code requirements. The project will also add a computer room and exercise area for residents.
Pacific Southwest Community Development Corporation will continue providing social services such as computer literacy, art classes, health workshops, food distribution, and a Senior Companion program, with weekly activities guaranteed for at least 15 years.
Construction is expected to begin at the end of December 2025 and last about one year. A state-approved relocation plan will be implemented during the renovation period. The PRP loan carries a 55-year term and requires all existing loans on the property to be extended beyond that timeline; project funds cannot be used to retire existing debt.
Under the newly approved agreement, the De Anza partnership will repay $628,684 in principal on the former redevelopment agency loans at the closing of the construction loan, anticipated by the end of 2025. The deeds of trust for these loans will then be reconveyed. The city’s CDBG loan will be resubordinated to the new financing and extended for 55 years. Accrued interest on the redevelopment agency loans, totaling $498,017, will be paid before the city issues a final certificate of occupancy, expected by October 2026.
City officials said the rehabilitation will benefit both residents and surrounding businesses by improving safety, accessibility, and the building’s long-term viability.
