A long-considered, low-income housing proposal on the west side
has hit a funding roadblock with council members at this week’s
meeting
– acting as the Redevelopment Agency Board – indicating the city
would not lend the $7.4 million needed to build it.
HOLLISTER
A long-considered, low-income housing proposal on the west side has hit a funding roadblock with council members at this week’s meeting – acting as the Redevelopment Agency Board – indicating the city would not lend the $7.4 million needed to build it.
The Westside Apartments project, a 32-unit, five-building venture near the intersection of Westside Boulevard and Fourth Street, will be put on hold until further funding can be secured.
The developer of the project, Community Service Development Corp. of San Benito County, and architect David Huboi both presented the project to the board in an information-only setting with no vote. The CSDC had committed to funding the remaining costs in the project totalling $8.8 million.
Huboi said that the city “wants” the Westside apartments.
“I left thinking that everyone wants that project,” said Huboi, who has been working with the RDA on this project for more than nine years. “I know how important it is to the city.”
The project will also feature a wide variety of bedrooms per unit. Huboi said that many of the units for families would include three to four bedrooms. One of the buildings would be four stories tall and would house elderly tenants. For those elderly units, most would have just one bedroom or will be a studio apartment.
The buildings and apartments would be built using “build it green” standards and will be less expensive for residents because of the techniques used.
“It will have a diverse offering to the community in terms of bedrooms,” he said.
RDA Projects Manager Bill Chow had similar thoughts about the project such as its “great location.” In early 2000, the RDA kicked off the process by providing a land acquisition loan of $1 million, Chow said.
“Everyone thought the project was a good project in the west gateway,” he said. “Staff liked the concept – the location is a great location. The staff’s only concern was the funding.”
Although the RDA wasn’t willing to give the developers the entire $8.8 million for the project, the RDA board did give direction to staff to help the developer apply for additional funds. Chow said one possibility is that the money could come from federal home funds.
“It could pass, but I think there is some discussion that RDA staff should work with CSDC to see if we can help them get additional funds to meet their financial gap.”
He added that it does make sense to have the apartments be classified as high density because of the proximity or shopping and medical care.
The next time the developer could apply for funding is in a year, Chow said.
“No timeline was given and staff was given direction to help them secure different funding sources.”
The benefits for the city do not include just housing for low income families but also funds from construction.
“It will bring in about $12 million in construction costs,” Chow said. “It will definitely bring in money to the city. It’s definitely a good project but they are asking for a bit too much at this time.”
