WNC and Ravello begin construction on 189-unit affordable housing project in Palmdale

Why is the $72 million Maison’s Village II project seen as a model for affordable housing expansion in California?

WNC & Associates and Ravello Holdings, Inc. have broken ground on Maison’s Village II, a $72 million, 189-unit affordable housing development in Palmdale, California. This marks the continuation of a public-private collaboration that began with Maison’s Village I, which delivered 168 units and reached stabilized occupancy in just four months following its January 2024 opening. With construction now underway on the second phase, the new community is expected to further address a critical shortage of affordable homes in the state’s high-growth exurban corridors.

The new development will rise at the intersection of Oak Street and East Palmdale Boulevard, a site selected for its proximity to schools, employment centers, retail hubs, and recreation areas. Maison’s Village II reflects a strategic response to what institutional investors and housing advocates characterize as an urgent demand for income-linked rental inventory across Southern California.

WNC & Associates, a pioneer in affordable housing syndication and development with more than $18 billion in national assets, is partnering again with Ravello Holdings, a Southern California real estate firm with experience across 140 developments and 6,000 residential units. The project builds on both firms’ reputations for delivering financially viable and socially impactful housing.

What types of units are included in Maison’s Village II and how are they tailored to low- and moderate-income families?

Maison’s Village II is designed to serve households earning between 30 percent and 70 percent of the area median income (AMI), ensuring that families priced out of market-rate rentals can access stable housing. The project’s housing mix is diverse, spanning 64 one-bedroom units, 46 two-bedroom units, 57 three-bedroom units, and 22 four-bedroom homes.

The development layout includes a mix of duplexes and single-family accessory dwelling units (ADUs) distributed across 66 residential lots. Larger three- and four-bedroom homes will feature attached two-car garages, while smaller units will offer surface parking. Each residence will come with in-unit washer/dryer hookups, central air conditioning, and modern appliances including a refrigerator, microwave, range, dishwasher, and garbage disposal. Design specifications also include private patios or porches and walk-in closets in select units, as well as durable vinyl flooring and privacy blinds.

Institutional housing observers note that this level of unit amenitization is unusual at the affordability tier being targeted, making the project a potential reference model for mixed-format low-income developments that avoid aesthetic or comfort trade-offs.

What shared community infrastructure is being built to foster long-term livability and resident engagement?

The Palmdale-based development is more than just a collection of housing units. As part of a growing trend in resident-focused affordable housing design, WNC & Associates and Ravello Holdings have included an array of shared amenities aimed at building social capital and reducing churn among tenants.

Maison’s Village II will feature a clubhouse, business center, computer lab, swimming pool, fitness center, playground, community park, and picnic and barbecue areas. Surveillance cameras and on-site property management are included to enhance security, and additional laundry facilities will supplement in-unit hookups. The infrastructure strategy is consistent with evolving best practices in affordable housing, where physical design is leveraged to foster resident retention and neighborhood identity.

Ravello Holdings Vice President Kirby Taylor noted that the development reflects the real estate firm’s commitment to balancing affordability with durability and long-term value, even amid a challenging California development environment shaped by labor costs, permitting hurdles, and land constraints.

How is Maison’s Village II financed and what does its funding structure reveal about capital availability for affordable housing?

The $72 million development is underpinned by a multilayered financing stack common in modern affordable housing projects. WNC & Associates is contributing $72 million in equity through the Low-Income Housing Tax Credit (LIHTC) program, a federal incentive vehicle that continues to anchor most viable projects in this category. The tax credit allocation allows institutional investors to receive dollar-for-dollar reductions in federal tax liability in exchange for long-term commitments to income-restricted housing.

In addition to equity, the project secured a $58 million construction loan from KeyBank, signaling sustained bank interest in credit-enhanced affordable development. A $30 million long-term permanent loan will be provided by the California Housing Finance Agency (CalHFA), reinforcing the state’s role in facilitating deeply affordable inventory amid rising homelessness and displacement.

Industry observers view the combination of LIHTC equity, bank construction finance, and CalHFA’s long-term capital as a resilient model for replication, especially in suburban cities with available land and high AMI deltas.

What lessons from Maison’s Village I are influencing the design and rollout of the second phase?

Maison’s Village I opened in January 2024 with 168 units and reached stabilized occupancy within just four months. This rapid lease-up rate highlighted the depth of demand for affordable rentals in Antelope Valley and surrounding areas. It also demonstrated the feasibility of large-scale, income-targeted projects that pair surface-level walkability with family-sized units in underserved housing corridors.

Feedback from the first phase is informing operational design for Maison’s Village II, including refinements to unit layouts, amenity locations, and tenant onboarding processes. Both developers cite resident satisfaction and neighborhood integration as proof points supporting the continuation of the project’s architectural and service delivery model.

WNC & Associates Executive Vice President Anil Advani underscored that the second phase is not only a physical expansion but a deeper investment in Palmdale’s housing resilience. He added that the long-term goal is to cultivate neighborhoods that support upward mobility for low-income families without triggering displacement or unsustainable rent escalations.

What is the projected completion timeline and how does this align with broader housing policy goals?

Construction on Maison’s Village II has already commenced, with completion targeted for 2026. This timeline positions the project to deliver new units amid the overlapping challenges of housing scarcity, economic uncertainty, and demographic shifts across California.

The development also aligns with state and municipal policy goals aimed at increasing low-income housing stock, particularly in regions outside major urban cores. With zoning and entitlement pressures constraining new inventory in Los Angeles and San Francisco, suburban municipalities like Palmdale are increasingly being looked to as future growth nodes.

Housing policy advocates argue that such developments offer both scalability and replicability—key features for meeting the state’s multi-year housing production targets under the California Department of Housing and Community Development’s Regional Housing Needs Allocation (RHNA) framework.

How are institutional stakeholders viewing Maison’s Village II in the context of national housing investment trends?

With rising interest in environmental, social, and governance (ESG) investment vehicles, affordable housing has gained traction among institutional capital providers seeking socially responsible real asset exposure. Projects like Maison’s Village II check multiple boxes: long-term rental income, public-private funding alignment, measurable social impact, and potential green-building compliance through energy-efficient designs.

While pricing pressures and regulatory timelines continue to complicate large-scale development in California, analysts note that successful execution in secondary markets like Palmdale can provide a road map for unlocking latent land value and producing mission-aligned returns.

Maison’s Village II, by securing a robust financial stack and moving into construction without delay, is already being noted as a case study in effective capital deployment for housing-focused ESG portfolios. Developers, investors, and municipalities are expected to watch closely as the project advances toward its 2026 delivery date.