LAGUNA BEACH : U.S. Funds Sought for Housing Project

A county group attempting to establish housing for low-income residents who have tested positive for the AIDS virus submitted an application Tuesday for federal funds for the project.

The grant request seeks about $3 million that would be used to provide one-bedroom apartments to be rented, probably for less than $300 a month, said Reed Flory, a financial and development consultant for Affordable Housing Project of Orange County.

Reed said he is optimistic that the grant will be awarded because the need is so great.

“There are many cases of HIV-positive low-income individuals in this coastal area,” Flory said. “For the population we’re looking at, there are only six units available in all the county.”

The group has targeted Laguna Manor for the housing site. The former retirement home at 2130 S. Coast Highway was shut down last year by the state Department of Social Services. If the grant request is approved, the facility would be redesigned as an independent-living apartment complex, officials of the group said.

The venture is being co-sponsored by AIDS Services Foundation in Irvine and Housing for Independent People in San Jose, a group Flory said has extensive experience in managing similar projects. Affordable Housing Project of Orange County is made up of board and staff members from those two organizations and from the Mary Erickson Foundation.

The group first proposed the plan to city officials more than a year ago. The City Council strongly supported the proposal and allocated $50,000 to help launch the project.

Flory said the group approached Laguna Beach first because it is among cities where the need is greatest. Laguna Beach has the highest per capita rate of AIDS in Orange County.

If the housing grant is awarded, the funds would be available in the fall, Flory said. The earliest the apartments could be available for rent would be the fall of 1993, he said.