September 24 2021 03:30 pm

Sacramento City Council approves $5M loan for affordable housing on Stockton Boulevard

Local News

The Latest – Tuesday, August 17

2:25 p.m.

The Sacramento City Council approved $5 million in loans to develop affordable housing at 4995 Stockton Boulevard Tuesday afternoon.


Original story below.

SACRAMENTO, Calif. (KTXL) — The Sacramento City Council will vote Tuesday to approve $5 million in loans to develop affordable housing along Stockton Boulevard.

Sacramento District 6 Councilman Eric Guerra said the planned site will have 198 affordable units, including 47 single-bedroom units, 95 two-bedroom units and 58 three-bedroom units.

“This project is part of the long-term strategy to provide workforce housing and address homelessness in the city,” Guerra said in Tuesday’s news release. “It will make use of a vacant lot along Stockton Boulevard and will help revitalize the corridor.”

The announcement comes after advocates gathered along Stockton Boulevard Monday requesting city leaders and property owners stop moving unhoused people out of the area.

The $5 million loans that are up for a vote are part of a $15 million commitment approved in May.

Last year, an advisory committee urged city leaders to shift Measure U tax dollars away from police and fire services and put it toward helping economically develop underserved communities.

The release said Mercy Housing, which will develop and manage the site, requested the $5 million be used for “early acquisition and closings costs, demolition of existing structures, and permanent financing.”

“Our proposed community is a critical component of the response to the housing crisis by providing a wide mix of apartment sizes and income affordability levels,” said Stephan Daues, Mercy Housing’s regional director of housing development.

The $5 million Acquisition, Construction, and Permanent Loan Agreement is comprised of $4 million in housing trust funds and $1 million in mixed-income housing funds, according to the release.

The city council will vote on the remaining allocation of the $10 million loans at a future meeting, according to Guerra.

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