GILROY
– South County Housing’s affordable multifamily apartment
project has nearly $4 million to add to its pot. The project’s
managers say it is a key piece of funding that was needed to make
the Sobrato Apartments possible and brings funding totals within $1
million of the goal.
GILROY – South County Housing’s affordable multifamily apartment project has nearly $4 million to add to its pot. The project’s managers say it is a key piece of funding that was needed to make the Sobrato Apartments possible and brings funding totals within $1 million of the goal.
The state’s Multifamily Housing Program awarded $3,955,000 to the Sobrato Apartments, 60 units of transitional housing and support services that will be constructed next year along with an emergency shelter.
The funding nearly closes the gap to complete the $16 million project, said Andy Lief, senior project manager for South County Housing. Once the remaining $1 million is obtained, the project will qualify for $5.5 million in tax credits.
“This (state money) was definitely the most critical, the largest piece of funding in this project to get those tax credits,” Lief said. “It was the key.”
South County Housing competed against other agencies for the state funding, beating out others in part because the county supported the project last September. The board of supervisors’ $1.7 million gave Sobrato Apartments a more competitive score for the state awards.
“The board’s approval of matching funds gave these projects a critical competitive advantage for state funding,” said Supervisor Pete McHugh, chair of the board of supervisors. “During these difficult economic times, local governments must be innovative in creating viable economic partnerships.”
Construction on the transitional apartments will likely start early next year, Lief said. The timeline of the project was pushed back a few months as South County Housing applies for two $500,000 grants, one federal and one state, later this month.
“Once we have these other (funding) sources in place, then that’s almost a given that we would get that (tax) funding,” he said.
The money will make up for an unforeseen $1 million gap caused by declining rent prices, Lief said.
“Because rents are going down in the county – which is a good thing – unfortunately, it hurts this project’s budget because we were anticipating more income,” Lief said.
Sobrato Apartments, along with two other county multifamily housing projects, has also received support from various government and private sources.
A total of six agencies in Santa Clara County received $22 million in the latest round of Proposition 46 funding. The $2.1 billion state bond, passed in 2002, helps with the construction, rehabilitation and preservation of affordable and emergency housing.
