Paradise Gardens III
California
What does it mean for a community to build back after an almost insurmountable loss? The Camp Fire was the deadliest and most destructive wildfire in California’s history, and the most expensive natural disaster in the world in 2018 in terms of insured losses.
Named after Camp Creek Road, the fire began on the morning on Thursday, November 8, 2018, in Northern California’s Butte County. A poorly maintained electric transmission line failed amid a strong windstorm, which quickly drove the subsequent fire through communities in the foothills of the Sierra Nevada, destroying much of the area.
The Camp Fire hit Paradise from three sides at once. Evacuation routes were blocked by fire and downed trees. The fire burned for almost a month, with more than 19,000 buildings (including 11,000 homes) burned and 85 deaths. When the flames were extinguished and the remaining residents returned, they were determined to rebuild.
Before the fire, Paradise Gardens III had been an affordable housing community built in 1979 with 13 buildings. As a result of the fire the project was destroyed. Fortunately, the residents were unharmed as most relocated temporarily with family and friends. After the fire, affordable housing in Butte County was almost nonexistent.
The mission to rebuild the Paradise Gardens III community was led by Impact Development. It has brought almost 50 affordable rental homes back to the community of Paradise, CA. The development has 48 one-bedroom apartments for seniors with incomes of 30% AMI or lower. All of the units benefit from a 20-year project-based Section 8 contract.
Impact’s owner, Gary P. Downs, has a strong track record of successful acquisitions and rehabilitations of rural affordable housing communities throughout California, including 31 with Boston Financial. In a twist of the cosmos, Impact was already in the process of purchasing the property from a third-party seller when the Camp Fire broke out and the property burned down.
Even then, the path from intention to putting shovels into the ground was a twisted one. The purchase and sale agreement was signed in 2021, and the property was then awarded 9% Disaster Relief Credits. Tragically, the seller passed away shortly after the purchase and sale Agreement was executed, but before the sale was complete.
Yet another twist was the fact that the proceeds from the $7MM insurance claim were a permanent source for the transaction. After careful review of the insurance policy by Boston Financial’s third party insurance consultant and Impact’s negotiations with the insurer, it was determined that the policy was not transferable to the new ownership group. This did not stop Mr. Downs. He solved this problem in a creative way by arranging to purchase the ownership entity, rather than the real estate.
These twists and turns took time, which delayed the investment closure. While Impact worked to obtain extensions from TCAC, the USDA and HUD, Mr. Downs loaned $8MM of his own funds in order to close the acquisition and commence the construction of the property. He would not be reimbursed until Boston Financial was ready to fund the first installment, 8 months later.
When construction finally began, everything was done with an eye toward guarding against future fires and climate disasters. Each building was built for fire resistance, with Wildland Urban Interface standards of fire hardened roofs, siding and windows. The entire Paradise Gardens III community site was regraded, and new pathways and hardscapes installed. All new fire-resistant landscaping was planted, and dead trees and combustible brush were removed leaving no vegetation within 100 feet of the structures. New roofs were designed to mitigate wildfire risk by using improved quality materials designed for use in high fire zones; roof gutters with leaf guards to prevent leaf and debris buildup; thick sheet metal built to withstand higher heats; and vents designed to stop embers from entering. All exterior walls, doors and windows are non-combustible, and all of the buildings have full sprinkler systems.
Each apartment has a patio, ceiling fan, central A/C and high-quality finishes including wood cabinets, granite countertops and stainless-steel Energy Start appliances. The development consists of 12 fourplexes and a separate community building with a community room, free Wi-Fi, a kitchen, central laundry and on-site management. The property offers adult education classes, monthly health education classes, a resident newsletter and an annual on-site Dental Clinic at no cost to the residents. Every unit and the property as a whole were rebuilt to be 100% ADA compliant.
Prior to the wildfire, Paradise, CA had a population of over 26,000. According to city estimates the population dropped as low as 2,000 after the fire ravaged the community but is now estimated to be around 10,000 with more than half (5,424) seniors.
Rent has skyrocketed in Paradise since the fire, so the need for more affordable housing is critical. 2024 represented a milestone in affordable housing for Paradise. Susan Hartman, the Director of Community Development – Planning and Wastewater of Paradise, told local news outlets that the numbers are a “huge deal.”
“Butte County as a whole certainly does not rank high on the list of the state’s counties for affluence,” Hartman said. “And so to be able to have affordable prices in the North State, I think that’s really important for any of the northern counties.”
She continues, “The Paradise Gardens III development in Paradise has provided much needed affordable senior housing in town after the 2018 Camp Fire. This type of development, affordable apartments, was in the top 3 responses from residents about what kind of housing they’d like to see prioritized in Paradise as part of the Town’s long-term community recovery plan and fulfills several housing policies in the Town’s General Plan Housing Element. Paradise Gardens III provides a wildfire resilient design, with structures built to the Wildland Urban Interface fire resistant building methods and materials and incorporates the “Zone 0” five-foot noncombustible area around buildings, that will help inspire more thoughtful development around it and elevates the aesthetics of the neighborhood.”
There were only around 100 affordable units in Paradise before the fire. Now, in just the past year, the town’s planning commission has ushered in around 340 units. Paradise Gardens III held its grand opening on October 24, 2024, with local leadership, including Mayor Ron Lassonde (born and raised in Paradise) welcoming the new community.
California State Treasurer Fiona Ma said, “The reopening of Paradise Gardens III in 2024 marks an important milestone in Paradise’s recovery. Leveraging state resources such as the 9% Disaster Relief Tax Credit by CTCAC, we’ve helped create a safe and dignified home for seniors affected by the Camp Fire. I commend Boston Financial, Impact Development, and all partners involved for their dedication to revitalizing this community.”
The story of Paradise, California is a story of resiliency in overwhelming circumstances. We are proud that the rebuilding of Paradise Gardens III could play a part in that story. Mr. Downs and Impact deserve this award because of their perseverance. There were numerous times when the development team could have given up on this transaction. Most others would have. They never did.
