Located at 729 L St. near 7th St., in the heart of downtown Sacramento, the Hotel Berry has been an historic presence in the City's central business district since it opened in 1929, according to the statement. And, “since it has outlived those challenging times and others, this upcoming renovation—complete with a full seismic retrofit—may be a sign that better times are ahead for the downtown area.”

According to Sacramento Mayor Kevin Johnson, “This restoration aligns perfectly with one of our major priorities for the coming year—the revitalization of our downtown core. Because of this and other developments, we’re finally making legitimate progress. Instead of just talking about revitalization, we’re seeing it happen. I’m also pleased to see that it meets or exceeds many of our ‘green’ standards, yet another vital priority to the Sacramento region.”

Originally part of a hotel system developed and managed by brothers B. S. & Harry Berry of San Francisco, the Berry opened near the conclusion of the 1920s construction boom at a cost of $300,000. In late 2007, the Hotel Berry was purchased by the Trinity Housing Foundation. Trinity, in partnership with The AF Evans Co., intended to undertake a substantial rehabilitation of the property using a combination of SHRA funds and federal 9% Low Income Housing Credits. In April of 2008, the partnership's tax credit application was successful, and they received an award valued at more than $13 million, which represented more than half of the projected $21 million budget.

Upon receiving the award, AF Evans and SHRA actively sought a tax credit equity investor and construction lender. Since renovation was scheduled to start in December of 2008, the relocation of existing residents also began, and the hotel's occupancy soon dropped to 50%.

However, due primarily to the nationwide financial crisis, according to a statement, the project received very little interest from the investment community, and Trinity/AF Evans eventually returned the tax credits to the state. “Finally, since the partnership lacked the resources to complete the renovation or to continue to operate the Berry, SHRA purchased it for $1 in March of 2009,” says the statement. Norwood Avenue Housing Corp., the nonprofit public benefit corporation affiliated with SHRA, then applied for and received a federal 9% LIHTC allocation and the American Recovery and Reinvestment Act exchange funds. Through a Request for Qualification process issued by SHRA, Jamboree was selected as the developer.

In December of 2010, Jamboree secured all financing, including loans from SHRA, and closed on the now-vacant property. “This complex renovation is just one creative example of what an effective public-private collaboration with partners such as Jamboree can accomplish in urban and infill redevelopment,” says La Shelle Dozier, executive director of SHRA.

Though not currently on the Historical Building Register, the Hotel Berry will be renovated retaining all historical marquees, signage, awnings, window size and location, and roof details. The renovation plan includes two-bay steel braced frames, foundations and soft story bracing, wall anchorage, plywood floor sheathing, brick repointing, corner strengthening, and roof parapet bracing. It also provides for a new and larger domestic water storage tank, boiler, new chiller and fans.

Another achievement of the property is its transit oriented development strategy. The building falls within easy walking distance of several modes of transportation, including light rail, bus lines and an Amtrak rail station.

The financial structure for the development also required a good deal of creativity, according to a prepared statement. SHRA's funding strategy layered local and federal support, and “is pioneering in terms of use of exchange of tax credit equity funding with ARRA grant funds totaling $13.6 million in permanent financing.” SHRA is contributing $10.1 million in permanent financing; US Bank is providing $5.5 million in construction loans; and Community Resource Project Inc. was instrumental in Jamboree receiving an allocation of $500,000 in federal weatherization funds for the $24.8 million renovation.

Bill Pavao, executive director of the California Tax Credit Allocation Committee, underscores the importance of converting the project's tax credit equity to ARRA grant funds. Given the age of the building, the special needs component, and the condition of the tax credit equity market just a few years ago, he says the exchange makes this very complex project slightly less difficult.

In keeping with Jamboree's commitment to sustainability, the Studios at Hotel Berry feature water-saving fixtures in kitchens and bathrooms, CRI Green Label carpeting, and low-VOC interior paint and adhesives. It will exceed Title 24 energy efficiency standards by more than 15%. Gelfand Partners Architects provided the architectural design, and Precision General Commercial Contractors Inc. will serve as General Contractor. Environmental Remediation will be handled by Gala Construction Inc.