The Hollister City Council will consider tonight finalizing a $1
million loan to a developer of low-income housing to purchase
property that would be demolished and reconstructed into a 22-unit
complex exclusively for residents struggling to afford Hollister’s
housing market.
The Hollister City Council will consider tonight finalizing a $1 million loan to a developer of low-income housing to purchase property that would be demolished and reconstructed into a 22-unit complex exclusively for residents struggling to afford Hollister’s housing market.
In February, the Council requested the Redevelopment Agency draft a loan with Community Services Development Corp. The property would eventually be the site of a complex for very low- and low-income families in three- and four-bedroom apartments.
The prospective loan from the Redevelopment Agency is the latest attempt by city officials to improve a substantial lack of affordable housing in the community, according to RDA Director Bill Avera.
“I think it’s safe to say that as far as larger units, especially for rental projects, we are in desperate need for that,” Avera said.
The RDA currently has committed investments in three low-income complexes in Hollister. One of those sites is directly adjacent to the Palm Court property at Fourth and West streets. As part of the latest project, the two neighboring locations would be combined into one 22-unit complex.
California law requires RDAs, which are funded by the state, to produce a certain number of low-income units for every 100 new houses developed, according to Avera.
For those units, monthly rent for families is based on a formula that takes into account number of family members, number of bedrooms and income.
Avera gave an example for a family of five that earns less than $57,950. He said the monthly rent in a three-bedroom apartment would be about $730.
If the Council approves the loan, CSDC would likely be forced to wait until October 2005 to complete the complex. The new building would include more bathroom units than the current structure, Avera said. The state-ordered cease-and-desist order on building permits incurred after the May 2002 sewer spill prohibits construction that adds stress to the current wastewater treatment plant.
CSDC will develop a more detailed project timeline in late summer. The nonprofit organization may start building before 2005, but it could only build seven or eight of the 12 planned units at the Palm Court site because of sewer restrictions, according to Brian Abbott, executive director of CSDC.
The Hollister RDA was established in 1983 for the purpose of improving infrastructure, citywide beautification and to assist efforts regarding low- and moderate-income housing. In the coming years, the RDA will fund such future projects as the city’s Long-term Wastewater Management Plan and Highway 25 improvements. The agency’s currently maintains about $17 million in its fund, according to Finance Director Barbara Mulholland.
Officials said low-income housing – and, specifically, the Palm Court project – deserves priority.
“I think there’s definitely a need for low-cost housing, especially now with the (economic) times,” said Councilman Robert Scattini, who added he sees Palm Court “as a good project.”
Scattini – who, as county marshal, handles numerous evictions of families out of houses deemed substandard – pointed out CSDC’s success with previous low-income housing projects. He mentioned two projects in particular – an apartment complex at East Street he said “used to be cockroach heaven” and another on Westside Boulevard.
“They (CSDC) do a heck of a job managing,” he said.
Mayor Brian Conroy supports Palm Court loan and said constructing affordable housing, namely apartment complexes, will be a priority once the sewer moratorium expires.
“As we begin to build again and get our infrastructure in place, we really need to look at affordable-type housing,” he said.
