Hollister officials’ concerns over South County Housing’s
finances were quelled even before the City of Gilroy this week
reversed course and approved a $676,000 loan to the
organization.
HOLLISTER
Hollister officials’ concerns over South County Housing’s finances were quelled even before the City of Gilroy this week reversed course and approved a $676,000 loan to the organization.
The agency had requested $676,100 from the City of Gilroy to buy a 50 percent stake of four unsold townhouses in the agency’s Cannery project., and council members there initially were split on a vote over the matter.
“We believe (South County Housing) is doing OK financially,” said Hollister Redevelopment Agency Projects Manager Bill Chow. “We were concerned about that, too.”
The loan was stalled by a 3-3 vote in early March, which spurred a meeting between the Hollister RDA and South County Housing to ensure that the agency was in good financial standing, according to Chow. This week, the Gilroy council reconsidered the issue and voted 4-2 in approval.
“We were getting ready to provide additional funding to them and we wanted to do our due diligence,” Chow said. “We asked them about their financial strength, (their ability to) withstand financial issues, and we felt confident that what was happening in Gilroy wasn’t a bailout.”
He continued: “It was a loan request, a typical loan request that any developer would ask for.”
Through the interview, the RDA determined that finances for the agency were not a concern.
“We went over the project and the bottom line is that we feel like they are in a strong financial situation and it can differentiate from other cities,” Chow said.
He added that it wasn’t true that funds from the Hollister RDA weren’t going to help fund Gilroy’s Cannery project.
While Chow can’t recall all of the projects South County has worked on in the past, he did say: “I believe they worked on some self-help projects and home projects. They have been pretty active in our community in the past.”
Continuing the relationship with South County Housing, the RDA has partnered with South County Housing for two low- to very low-income housing projects, slated to begin within the next year.
The first project is the Vista Meadows Project, a 72-unit apartment complex for very-low income individuals and families on Park Street. The RDA has committed $3.7 million for the project and “should be moving forward this year,” Chow said.
The other project is the Hillview Single Family Housing Project, anticipated to being early next year. The project is slated for 25 units for very low- and low-income families, located on Central Avenue. For this project, the RDA has committed $1.4 million.
For more on this story, see The Free Lance on Tuesday.
