SOUTH GATE : 20 Low-Rent Units Targeted to Seniors

A proposed housing project for low-income senior citizens will be the first of its kind in the city and one of only a few in the nation, officials said.

The 20-unit apartment building proposed to adjoin 40 existing apartments at 8949 Dudlext Ave., according to a plan submitted by South Gate-based UDI Development, will guarantee low rents for seniors for at least 20 years and should be a model for future projects, officials said.

Rent should be as low as $416 a month for a one-bedroom unit, compared with market-rate rents of $608 and more in the adjoining building.

The project may also be one of the first in the nation in which a for-profit development company will use federal Home Program funds to build housing, city officials said.

The Home Program was created under the National Affordable Housing Act of 1990 to increase the availability of affordable rental housing for low- and very-low-income people.

Cities and other jurisdictions can apply for Home Program funds only after the U.S. Department of Housing and Urban Development has approved a comprehensive housing strategy for the area. So far, most Home Program projects involve rehabilitations of existing buildings by nonprofit community development organizations, said Ruben Lopez, deputy director of community development.

“I don’t know of any other (Home Program) project in Los Angeles County or in California using a for-profit developer,” Lopez said.

The $1.6-million project will use $1 million in Home Program funds, Lopez said, making it possible for UDI Development to keep rents low and still make a profit.

“We couldn’t do this project without the Home funds,” said developer Sylvester Gonzalez, president of UDI. “The rents would have to be $625.”

The city expects to submit a final project proposal to HUD by February, Lopez said.