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1 RiversideCA.gov1
RiversideCA.gov
Housing and Homelessness CommitteeAugust 31, 2026PROPOSED ACQUISITION AND CONVERSION OF MOTEL 6 AND DAYS INNHousing and Human Services RiversideCA.gov2
BACKGROUND•Riverside County’s senior population continues to grow, increasing the need for affordable housing that allows older adults to remain housed and age in place.•Seniors on fixed or limited income face significant housing cost burdens, while the supply of affordable senior housing remains limited. •Converting existing motels into dedicated senior housing in locations with access to medical care, transportation, community amenities, and services helps address the critical need. 8/19/2026
2 RiversideCA.gov3
ALLIED ARGENTA, LLC•Established in 2009, with extensive experience in acquisition, financing, development, construction, and management of affordable multifamily housing.•Utilizes multiple financing sources including tax-exempt bonds, Fannie Mae, Freddie Mac, FHA financing, private placement, and 4% and 9% LIHTC.•Experience developing affordable housing for individuals with developmental disabilities in partnership with local service providers.
RiversideCA.gov4
TWO PROPOSED PROJECTS•Allied executed letters of intent on two motel properties in the City of Riverside for acquisition , rehabilitation, and conversion into dedicated affordable senior housing communities.•Create 148 affordable senior housing units at a combined total development cost of $64.4 million MOTEL 6 – 3663 LA SIERRA AVENUEDA YS INN – 10545 MAGNOLIA AVENUE 8/19/2026
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3663 LA SIERRA AVENUE•Acquire and rehabilitate 122-room Motel 6 on approximately 2.1 acres, converting into 82 affordable senior housing units•Unit mix: 41 studios, 40 one-bedrooms , and 1 two-bedroom manager’s unit•20 units at 30% of AMI, 31 units at 50% of AMI, and 30 units at 60% of AMI•Include secured perimeter gates and controlled access for residents82Units$39.6MDevelopment cost$9MAHSC funding sought20Voucher units2030% AMI Proposed Project-Based Voucher units RiversideCA.gov6
ANTICIPATED TIMELINE: 3663 LA SIERRA AVENUEMilestoneTarget DateHousing and Homelessness Committee MeetingAugust 2026AHSC ApplicationMarch 2027AHSC AwardDecember 2027MIP Application (tax credits and soft funds)February 2028CalHFA Loan ApprovalApril 2028Tax Credit ApplicationMay 2028Tax Credit AwardAugust 2028Acquisition ClosingDecember 2028Construction CompletionOctober 2029Full Lease-UpDecember 2029 8/19/2026
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10545 MAGNOLIA AVENUE•Acquire and rehabilitate 66-room Days Inn on approximately 0.77 acres, converting into 65 studios and one-bedroom manager’s unit. •50 units at 30% of AM and 15 units at 50-60% of AMI. •Include secured perimeter gates and controlled access for residents.•Anticipate financing includes 9% LIHTC, permanent debt, soft financing, and deferred developer fee. Project also anticipates pursuing TCC funding with City assistance. 66Units$24.7Development cost$7.7MSubsidy gap50Voucher units5030% AMI Proposed Project-Based Voucher units RiversideCA.gov8
SUPPORTIVE SERVICES, SENIOR AMENITIES AND PROPERTY MANAGEMENT•Resident services provided by Life Steps, with coordination with the Riverside County Office on Aging and the Housing Authority.•Senior-focused in-unit features include grab bars, shower chairs, slip-resistant flooring, 120°F maximum water temperatures, raised outlets, and lever-style handles.•Common amenities: senior-oriented fitness center, community room, resident programming, and supportive services focused on health, wellness, independence, and community connection.
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5 RiversideCA.gov9
SUPPORTIVE SERVICES, SENIOR AMENITIES AND PROPERTY MANAGEMENT•Allied anticipates selecting a third-party property manager with substantial affordable senior housing experience and Riverside-area knowledge.•Firms under consideration include Falkenberg/Gilliam & Associates, Royal Property Management, FPI Management, and New Earth Residential.•Final services, amenities, and management selection will be refined as design, funding, and project requirements advance.
RiversideCA.gov10
BLOOMBERG CITIES IDEA EXCHANGE•Cities share innovative solutions and receive technical assistance and peer-to-peer support•April 2025, Riverside joined the Renovating and Retrofitting Social Housing Initiative •Opportunity: Use motel conversion as an innovative model to expand affordable housing while improving the energy performance of existing buildings 8/19/2026
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RECOMMENDATIONThat the Housing and Homelessness Committee receive and file a report regarding the proposed acquisition and conversion of the Motel 6 located at 3663 La Sierra Avenue and the Days Inn located at 10545 Magnolia Avenue into approximately 148 affordable senior housing units, as proposed by Allied Argenta, LLC, and provide input regarding the continued coordination of the projects.