Yuba City Council members voted to award an $800,000 grant toward the proposed 40-unit New Haven Court project that would help make the Regional Housing Authority’s application for tax credits more competitive.
The Regional Housing Authority applied for low-income housing tax credit financing earlier in the year to help fund the approximately $13 million project but were unsuccessful, which prompted the organization to return to the city to request an increase to its commitment to better compete with other similar projects. The city already awarded $400,000 earlier this year, and voted Tuesday to increase it to up to $800,000, contingent on the authority being awarded the tax credits or else the money would come back to the city.
The Regional Housing Authority must be awarded the tax credits by Oct. 31 for the grant to go through. The credits through the California Tax Credit Allocation Committee would provide up to roughly $9 million for the project.
“I think no matter what we do, we still have a large mountain to climb in regards to having enough units within our community to house those folks who need it,” said Councilman Marc Boomgaarden. “This would be a good project if successful.”
Officials said Sutter County currently has about 40 rental units available. The New Haven Court project – a permanent supportive housing development proposed for Yuba City that would give preference to homeless military veterans and other individuals experiencing homelessness and mental disabilities in the area – would double that.
The city has about $1.16 million in funding for construction on projects that provide housing for the homeless, which is where the grant would come from. If the grant goes through, the Regional Housing Authority would enter into a loan with the developer of the project, Pacific West Communities.
Tax credit funding applications must be in by July, and applicants are expected to receive word on whether or not they will receive it by October.
New Haven Court would be located at 448 Garden Highway and include both studios and one-bedroom apartments. It would have an on-site resident manager, as well as case management offices for individualized supportive services. The Regional Housing Authority estimates that construction of the project would take 12-14 months.