Fairview Terrace | Case Study

The situation

Northern California, like much of the state, faces a significant shortage of affordable housing. Developers continue to contend with rising construction costs, labor constraints, and lengthy development timelines. Mutual Housing California sought a new approach to deliver high-quality affordable housing more efficiently, without sacrificing the resident experience or long-term performance.

Fairview Terrace, a 76-unit affordable Seniors Housing community in Stockton, was conceived as more than a single development. It would serve as the pilot project for Mutual Housing California's six-project factory-built housing pipeline, which is expected to deliver more than 600 affordable homes across Northern California by 2030. The organization needed financing partners that understood both affordable housing execution and the potential of an innovative construction model.

THE SOLUTION

Walker & Dunlop Affordable Housing Equity partnered with Mutual Housing California to help finance Fairview Terrace, supporting a development strategy centered on factory-built modular construction. The approach allows housing units to be manufactured in a controlled factory environment while site work progresses simultaneously, reducing construction timelines and creating opportunities for greater cost efficiency.

The project combines factory-built housing with advanced sustainability features, including a solar-powered microgrid, battery storage, all-electric building systems, and smart energy management technology. Modules are expected to be erected onsite in approximately two weeks, while standardized design and construction methods are intended to create efficiencies that can be replicated across Mutual Housing California's broader pipeline.

The Result

Fairview Terrace establishes a scaled factory-built affordable housing pipeline and creates a model that Mutual Housing California plans to replicate across five additional developments. With financing support from Walker & Dunlop Affordable Housing Equity, the project demonstrates how innovative capital structures can help bring new housing delivery models to market and position developers to scale them across multiple communities.

The factory-built approach is expected to reduce development costs by approximately 10 percent and shorten construction schedules by several months compared with traditional construction methods. By helping finance the pilot project, Walker & Dunlop supported the launch of a pipeline expected to deliver more than 600 affordable homes across Northern California while creating a framework that could be replicated in other markets facing housing shortages.

Beyond construction efficiencies, Fairview Terrace is designed to deliver long-term value through lower energy costs, enhanced resiliency, and modern community amenities. The development demonstrates how capital, innovation, and scalable construction methods can work together to expand affordable housing production and improve outcomes for residents.