South Gate : 20 Low-Rent Units Planned for Seniors

A proposed housing project would provide low rents for senior citizens for at least 20 years, officials said.

Under a plan submitted by South Gate-based UDI Development, a 20-apartment building will adjoin 40 apartments at 8949 Dudlext Ave. Rent would be as low as $416 a month for a one-bedroom unit, compared with $608 in the adjoining building.

The development company will use federal Home Program funds to build the housing, city officials said. The $1.6-million project will use $1 million in Home Program funds, Lopez said, making it possible for UDI to keep rents low and still make a profit.

The Home Program was created in 1990 to increase the availability of affordable rental housing for low- and very-low-income people.

Cities and other jurisdictions may 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. Most Home Program projects involve rehabilitation of buildings by nonprofit community development organizations, said Ruben Lopez, deputy director of community development.

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