Newport Beach : $1 Million Is Allocated for Affordable Housing

Two proposals that ultimately could bring additional affordable housing to Newport Beach have been approved by the City Council.

The council agreed to allocate about $1 million in Community Development Block Grant money to Irvine-based Wale Development Corp., which earlier submitted a proposal to build medium-density, moderately priced apartments in Newport Beach.

Under the Federal Housing and Urban Development Act, the funds are provided to cities for the benefit of medium- and low-income residents and for fighting urban blight. About $1.1 million will be available to the city.

Although the proposal is subject to HUD approval and details have yet to be worked out, senior planner Chris Gustin said it calls for Wale Development to buy three to six parcels on 15th Street in Newport Beach for the new housing.

No final tally on the city’s subsidy has been established yet, he said. But in exchange, Wale Development would agree to rent guidelines for 30 years. Under existing guidelines, the one- and two-bedroom units would rent for between $540 and $675 a month to families with annual incomes of about $30,000 or less, he said.

“On the surface, it looks like a solid deal for the city, Wale Development and the lower economic strata of the community,” Gustin said.

Newport Beach will submit the package shortly, and approval should come in 60 to 90 days, he said. Construction could begin by the end of summer, with completion within six months, said Edward Wale, president of Wale Development.