Developer Seeks Loan From Simi : Housing: Griffin Industries will request $750,000 to help pay for 70 low-income condos in 500-home project.

A Simi Valley developer planning a 500-home complex on the city’s west end will ask city leaders today for a $750,000 loan to help pay for low-income condominiums at the project.

The proposal by Griffin Industries is a scaled-down version of the developer’s request for a $1-million, interest-free loan that was rejected by the city’s Affordable Housing Subcommittee in March.

Council members Judy Mikels and Bill Davis, who make up the subcommittee, balked at the no-interest part of the initial request and said they did not want to tie up so much housing money in one project.

At the end of fiscal year 1994-95, the city will have only $710,000 in low-income housing funds not already committed to other projects, Deputy City Manager Brian Gabler said.

The bulk of that money comes from a state-mandated program requiring city redevelopment agencies to set aside 20% of their revenue for affordable housing, Gabler said.

To fully grant Griffin’s request, the city would have to tap into other revenue sources, such as the general fund.

Mikels said she would like to see the low-income housing built, but is hesitant to grant Griffin the amount of city funding requested.

“I’m still iffy, but it looks a lot better,” Mikels said. “My main concern right now is finding the funds, because it’s still a lot of money that’s going to be tied up for a long time, and I don’t want other projects to lose out because of it.”

Under Griffin’s new request, the developer is offering to pay 6% interest and build 70 low-income homes, rather than the 96 proposed under the original plan, Vice President Richard Niec said.

The subsidized units, which would be offered at about $30,000 below market value to low-income buyers for 30 years, would be spread throughout the development, Niec said.

If the city does not approve the new proposal, Griffin will probably withdraw the offer and build the development without any low-income housing, Niec said.

“We’ve gone back and looked at the level of assistance and have decided that this would pretty much be our minimum offer,” Niec said. “Without the city’s assistance, we would probably look at doing the project without an affordable component.”

The 45-acre Simi Village development, south of Los Angeles Avenue between Sinaloa Road and 1st Street, is slated for completion in 1998, if approved by the city.

In recent years, the city has contributed more than $1.6 million to two housing developments for low-income residents, said Dulce Conde-Sierra, Simi Valley’s deputy director of housing and special projects.

One of the city-subsidized projects, the recently opened Heywood Gardens apartment complex for senior citizens, is reserved entirely for low-income residents. Monthly rent on its 75 units ranges from $0 to $500.

The other project, a 22-townhouse development being built by Cabrillo Economic Development Corp., will cater to residents who earn 75% or less of the county median income. The median income is about $39,700 for a family of four.

If the Affordable Housing Subcommittee approves Griffin’s loan proposal, the matter will be sent to the full City Council for consideration.

FYI

Simi Valley’s Affordable Housing Subcommittee meets at 5:30 p.m. today at Simi Valley City Hall, 2929 Tapo Canyon Road.