A $12.5 million Manteca Redevelopment Agency loan will allow Manteca Atherton Associates to proceed with building a 153-unit apartment complex for low- and moderate-income renters on Atherton Drive near the Union Pacific Railroad tracks south of the Highway 120 Bypass.
The financing plan for the 7.86-acre project includes tax-exempt bonds, deferral of part of the development fees, and 4 percent low income housing credits. The $12.5 million RDA loan will be payable with residual cash receipts after the developer pays whatever development fees are deferred.
Mayor Willie Weatherford noted the RDA has money in the state mandated 20 percent set aside account for affordable housing that isn’t being utilized. It provides not just a project by roughly cutting in half a previously approved at market 300-unit apartment complex and converting it to affordable housing use for 55 years, but it also creates construction jobs.
Plus as the loan is paid off with interest the RDA will be able to use the receipts for other affordable housing projects down the road.
“The project creates affordable housing units that are affordable for the working poor,” Weatherford said.
The mayor added the misnomer is affordable housing means owner-occupied. Instead it refers to housing units that people can afford to live in.
Such projects - subsidized indirectly with financing and not upfront help to pay rent - requires tenants to still qualify based on a steady income source. The rents are not at market but are set at a percentage below market to make them affordable to the income median of community’s workforce.
Dubbed Belagio Apartments, the complex would be built on East Atherton Drive just east of Sereno Drive and north of the Tesoro neighborhood.
The Manteca City Council in November approved the issuance of $17 million in tax-exempt bonds through the California Statewide Communities Development Authority (CSCDA) to allow Manteca Atherton Associates to build the project on a part of the parcel they have approved for 300 apartment units east of Van Ryn Avenue and the 295-unit Paseo Villas apartments.
The development firm would still have authorization to construct 150 at-market apartment units between the proposed income restricted complex and Van Ryn Avenue. It was originally approved as a 300-unit complex known as Tesoro Apartments.
Belagio Apartments will consist of a tot lot, BBQ area, and community room with kitchen, fitness room, computer room, and laundry facilities. Each unit would have blinds, carpeting, patios, and appliances.
Tax-exempt bonds allow for the building of affordable housing.
The (CSCDA) is a joint powers authority sponsored by the California State Association of Counties and the League of California Cities.
The mission is to provide local governments and private entities access to low-cost, tax-exempt financing for projects that provide a tangible public benefit, contribute to social and economic growth and improve the overall quality of life in local communities throughout California.
More than $46.6 billion in tax-exempt debt issued since the organization’s inception in 1988.
The financing plan for the 7.86-acre project includes tax-exempt bonds, deferral of part of the development fees, and 4 percent low income housing credits. The $12.5 million RDA loan will be payable with residual cash receipts after the developer pays whatever development fees are deferred.
Mayor Willie Weatherford noted the RDA has money in the state mandated 20 percent set aside account for affordable housing that isn’t being utilized. It provides not just a project by roughly cutting in half a previously approved at market 300-unit apartment complex and converting it to affordable housing use for 55 years, but it also creates construction jobs.
Plus as the loan is paid off with interest the RDA will be able to use the receipts for other affordable housing projects down the road.
“The project creates affordable housing units that are affordable for the working poor,” Weatherford said.
The mayor added the misnomer is affordable housing means owner-occupied. Instead it refers to housing units that people can afford to live in.
Such projects - subsidized indirectly with financing and not upfront help to pay rent - requires tenants to still qualify based on a steady income source. The rents are not at market but are set at a percentage below market to make them affordable to the income median of community’s workforce.
Dubbed Belagio Apartments, the complex would be built on East Atherton Drive just east of Sereno Drive and north of the Tesoro neighborhood.
The Manteca City Council in November approved the issuance of $17 million in tax-exempt bonds through the California Statewide Communities Development Authority (CSCDA) to allow Manteca Atherton Associates to build the project on a part of the parcel they have approved for 300 apartment units east of Van Ryn Avenue and the 295-unit Paseo Villas apartments.
The development firm would still have authorization to construct 150 at-market apartment units between the proposed income restricted complex and Van Ryn Avenue. It was originally approved as a 300-unit complex known as Tesoro Apartments.
Belagio Apartments will consist of a tot lot, BBQ area, and community room with kitchen, fitness room, computer room, and laundry facilities. Each unit would have blinds, carpeting, patios, and appliances.
Tax-exempt bonds allow for the building of affordable housing.
The (CSCDA) is a joint powers authority sponsored by the California State Association of Counties and the League of California Cities.
The mission is to provide local governments and private entities access to low-cost, tax-exempt financing for projects that provide a tangible public benefit, contribute to social and economic growth and improve the overall quality of life in local communities throughout California.
More than $46.6 billion in tax-exempt debt issued since the organization’s inception in 1988.
