A proposed $27 billion cut for federal rent vouchers for the low-income could impact the financial viability of a proposed five-story downtown senior housing project.

The Trump administration has proposed a 44 percent cut in rental assistance funding.

And while the House Appropriations Committee in mid-Jully stripped out the plan to overhaul the Housing and Urban Development funding in the upcoming federal budget, the administration is still pushing forward with its reduction strategy.

The Manteca project was rejected in the initial round of funding due to issues with access to public transportation.

The application has been resubmitted with changes to address the deficiency.

Even if it passes the second round, some lenders are now skittish about investing in low-income housing projects that rely on federal rent subsides to pay down construction loans.

It is not clear how heavily subsidies factor into the downtown Manteca project.

The City Council in March 2024 approved a deposition and development agreement with Delta Community Developers Corp.

The agreement includes a 55-year affordability restriction on the property, a performance deed of trust and a ground lease among other documents to set  the project in motion.

The documents allows the city to “dispose” of the property to the Housing Authority of San Joaquín County for $100 to ensure the maximization of their ability to obtain grant funds.

It allows the housing authority to collaborate and partner with the developer.

The terms require the project to be developed and completed by no later than Dec. 31, 2028.

The five-story housing project is proposed for the northeast corner of Yosemite Avenue and Sycamore Avenue.

The plans call for senior apartments on the upper floors and commercial on the ground floor.

It is being proposed for two parcels, including one where the Waukeen Hotel once stood.

The two-story structure built in the early 1920s had hotel rooms on the second floor and commercial on the ground level.

It was eventually converted to efficiency apartments on the second floor.

A fire in the late 1970s gutted the hotel, killing two people. The fire also damaged an adjoining building.

The hotel was demolished and the adjacent building was torn down except for the single brick wall that is still standing today.

The commercial for the new project that is expected to be 75 feet tall — 8 feet lower than the 500-room Great Wolf resort — will be orientated toward Yosemite Avenue.

The commercial entrance, though, will be accessed from the corner — a first for the downtown district.

The commercial space will cover roughly 2,100 square feet.

The lobby entrance to the apartment portion will be from Sycamore Avenue immediately north of the commercial. It will allow access to one of two stairways and an elevator.

It will also access a 15-stall parking area tucked under the second floor with a vehicle entrance from the alley.

The Sycamore-Yosemite parcels were bought by the city for $80,000 in 2021.

 There is ample city-owned parking nearby — including that adjoining the satellite public safety office — to accommodate parking for tenants.

To contact Dennis Wyatt, email dwyatt@mantecabulletin.com