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Victorville to lend $21 million to apartment developer (Posted Date :Saturday, December 15, 2007) |
Law requires funds to be used for affordable housing
VICTORVILLE — The City Council is preparing to approve an agreement Tuesday to lend a developer more than $21 million to build moderate-income apartments.
It may sound like a lot, but by California law, the funds cannot be used for anything else.
State law mandates that 15 percent of all new dwelling units within a redevelopment area have to be affordable, said city spokeswoman Yvonne Hester.
“We use our housing set-aside funds to accomplish that 15 percent,” she said.
In Victorville’s case, the funds come from a 1 percent property tax in its three redevelopment areas — the Victor Valley Economic Development Authority, which includes Southern California Logistics Airport, plus the Old Town and Bear Valley redevelopment areas.
California began using this method of financing — known as “tax increment” financing — in 1945 to redevelop blighted areas. In 1979, the state mandated that 20 percent of tax increment funds be set aside for affordable housing.
In the Victor Valley, other recipients of redevelopment “tax increment” funding are the Victorville school districts and the Mojave Water Agency.
The project, called Centre Point Apartments, will contain 128 units, according to a memo from Economic Development Director Keith Metzler.
The $21 million loan, for the $33 million project, carries 3 percent interest and is spread over 55 years. The developer is Rancho Cucamonga-based National Community Renaissance of California.
For a tenant to qualify, his or her income must be no higher than $71,040 for a family of four, or 120 percent of the area’s median income. Rent is not to exceed 30 percent of the income cap, adjusted for family size. In San Bernardino County, the median income is $59,200. In other words, the monthly rent should not exceed $1,776 for a family of four.
Construction is expected to start in August.
By comparison, Hesperia currently has four affordable housing complexes under construction, according to city spokeswoman Kelly Malloy.
Tatiana Prophet, Staff Writer
By : Daily Press |
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