HIT Finances Union-Built Affordable Housing in National City, CA

HIT Finances Union-Built Affordable Housing in National City, CA

‍The AFL-CIO Housing Investment Trust ("HIT") is helping to finance the $85.5 million new construction of Union Tower Apartments in National City, CA. This development marks the first phase of the large-scale redevelopment of the 22-acre National City Park Apartments site, an affordable housing complex originally built in 1968 by a non-profit affiliate of the San Diego County Building and Construction Trades Council ("SDBCTC").

The SDBCTC has retained its ownership of the National City Park Apartments for the past 56 years with a mission to provide affordable rental housing to area residents. The HIT has worked closely with the SDBCTC since it started the development process eight years ago to ensure the successful realization of this significant development, including meeting the HIT's 100% union labor requirement.

This phase of Union Tower involves the demolition of two uninhabited residential buildings to construct 94 new affordable housing units across two 4- and 7-story buildings, tripling the density of the initial site. The development incorporates energy-efficient and green building design elements, including an all-electric design and the use of locally produced materials.

Union Tower will provide new affordable housing units to National City residents earning up to 60% of the area median income, with 24 units reserved for previously unhoused veterans. The project will also offer onsite supportive services to such veterans with the intention of nurturing the principles of self-sufficiency, including case management, physical and mental health care, and resident service coordination.

About the HIT:The HIT is a fixed-income, investment-grade mutual fund with $6.7 billion in net assets. For over 40 years, the HIT has been a leader in putting union and public pension capital to work to produce competitive returns and achieve mission-related collateral objectives. Investors should consider HIT's investment objectives, risks, and expenses carefully before investing. Investors may view the HIT's current prospectus, which contains more complete information, on its website at www.aflcio-hit.com and may obtain a copy from the HIT by calling the Investor Relations Department at 202-331-8055. Investors should read the current prospectus carefully before investing. Job and economic impact figures are estimates calculated using IMPLAN, an input-output model, based on HIT and HIT Subsidiary Building America CDE, Inc. project data. The data is current as of April 30, 2024. Economic impact data is in 2023 dollars and all other figures are nominal.