"There's a great need [for affordable housing]", said Steve Holtz,
assistant project manager. When a 20-unit senior housing complex that
was proposed, for example, 400 signed up for the interest list.
"Whenever we've done this type of apartment conversion, there is
generally no shortage of people interested," said David Biggs, the
city's Director of Economic Development.
On May 5, the City Council gave the developers, KDF Communities
and Village Investments, the green light to apply for $9 million in
tax-exempt bonds from the state, for Hermosa Vista.
Developers will hear back from the state in June, Holtz said.
Then, toward the end of July, the city will request a loan from the
redevelopment agency to help fill in the additional funding gap.
Holtz predicts that construction will begin in August.
Under state law, affordable housing is separated into four income
categories; very low, low, median and moderate.
Of the 88 units, 90% will fall in the low-income bracket, and 10%
will qualify as very-low income.
Tenants' salaries for low-income housing must not exceed $39,550,
half of the median income for the county. The salary ceiling to
qualify for the very-low income units is $26,450.
The average median income in Orange County is $52,900.
Very-low-income units will occupy 26 rooms altogether, two
studios, eight one-bedrooms and 16 two-bedroom units. Studios will
cost from $614 to $746, one-bedrooms from $658 to $800, and
two-bedrooms from $784 to $954.
Rehabilitation will take about a year to complete and could cost
as much as $13.5 million. Tenants whose salaries exceed low-income
limits will be asked to relocate.
Changes to the existing complex will include basic maintenance and
painting, landscaping and other cosmetic improvements, Holtz said.
"The building has not been maintained very well," Holtz said. We
will improve it and the neighborhood around it."
Commission to consider desalination plant
The Planning Commission is scheduled to vote on the controversial
desalination project after a public hearing on the topic Tuesday.