Feb. 27--A senior apartment complex intended to provide affordable housing within Sacramento'sCurtis Park Village development received a needed financial boost Tuesday as the City Council authorized an additional $2.2 million in loan funds for the project.
The council action brings the Sacramento Housing and Redevelopment Agency's total loan commitment for the Curtis Park Court Apartments to $4 million.
The three-story building totaling 96,030 square feet is to be built on approximately 2 acres of undeveloped land near the future intersection of 24th Street and 10th Avenue in the Curtis Park Village subdivision. The building will include 91 studio, one- and two-bedroom residential units for seniors and one three-bedroom manager's unit, according to a city staff report. A specific number of units will be affordable to residents in each of four income categories, ranging from at or below 30 percent to at or below 60 percent of the area median income.
In approving the increased loan, City Council members said they consider the senior complex a priority project.
The city in June 2009 received state Proposition 1C Transit-Oriented Development funds for Petrovich Development'sCurtis Park Village project to build infrastructure in exchange for affordable housing. The senior complex will be developed and managed by Sacramento-based Domus Development LLC.
In June 2013, the city authorized the Housing and Redevelopment Agency to provide a $1.8 million loan for the project using City Home Investment Partnership funds. La Shelle Dozier, SHRA's executive director, said the City HOME funds are a federal appropriation received each year based on a number of city economic indicators relating to housing and poverty. The 4 percent simple interest loan is to be repaid over a 42-year term.
The developer also submitted an application for a competitive 9 percent low-income housing tax credit for the project to the California Tax Credit Allocation Committee, but was not successful in receiving the credit allocation, according to the staff report.
The project's financial feasibility also has been affected during the past nine months by rising interest rates, a decrease in approved rents for projects receiving tax credit allocations and an increase in the housing agency's utility allowances. In addition, construction costs have increased by $2.5 million because federal prevailing wages are now required, according to the staff report.
Housing agency officials said the developer will resubmit an application for the 9 percent tax credit in March. If it is awarded, construction of the project is expected to begin in the fall.
If the new tax credit application is not successful, Dozier said the housing agency likely would ask the developer to apply at least one more time before considering other funding alternatives.
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