SIMI VALLEY : Council to Discuss Low-Income Project

The Simi Valley City Council’s subcommittee on affordable housing will meet today to discuss ways to help finance a proposed 75-unit apartment complex on Heywood Street for low-income elderly residents.

The Christian Senior Housing Foundation wants to build the affordable housing project on 2 1/4 acres of a 3 1/2-acre lot near Erringer Road.

But the foundation needs an additional $300,000 to purchase the property, Assistant City Manager Jay Corey said.

The federal Department of Housing and Urban Development agreed last month to give the foundation a $1.3-million low-interest loan to buy the 3 1/2-acre parcel, which is priced at $1.6 million, Corey said.

The foundation, a nonprofit organization based in Atlanta, has asked the city’s Community Development Agency for assistance in covering the remaining $300,000, Corey said. Also, the foundation is seeking to persuade HUD that the property is worth more than $1.3 million, he said.

City officials will discuss whether to sell the remaining 1 1/4 acres to raise the needed cash or purchase the smaller lot, holding it until the foundation can obtain additional federal financing to develop a second complex on the property.

Other options the two-member council subcommittee will consider include a proposal from the Cabrillo Economic Development Corp. to build a companion 40-unit complex on the smaller site. The subcommittee will pass its recommendation to the full council later this week.

Cabrillo Economic Development Corp., a nonprofit housing agency based in Saticoy, has offered to spend $2 million to add the 40 apartments to the city’s low-income housing stock provided that the city agrees to lease or give the nonprofit group the smaller parcel at no cost, said Ralph Lippman, Cabrillo’s project manager.

“That’s our bottom line. We couldn’t afford to purchase the land for $600,000 and meet the affordable housing guidelines set by the city,” Lippman said. Apartments in the proposed complex would rent for $350 a month, he said.

Cabrillo Economic Development Corp. has until Aug. 31 to file for a low-interest federal loan to help finance the project, Lippman said.

“There is a small window of opportunity so we must have the city’s decision soon,” he said.

But Corey said the city may solicit other proposals to develop the smaller lot.

“We must consider a wide range of options,” he said.

“Given the variety of choices, I’m sure that ultimately we’ll be able to work something out.”