SIMI VALLEY : Panel OKs Loan for Low-Income Units
A developer’s request for a $750,000 loan from the city of Simi Valley to build condominiums for low-income residents has won approval from a city subcommittee and is set to go before the City Council.
The request is a scaled-down version of a proposal made in March to the Simi Valley housing subcommittee by Griffin Industries. At that time, the developer was seeking a $1-million, interest-free loan.
But council members Bill Davis and Judy Mikels, who make up the subcommittee, rejected that proposal, saying that the amount was too high and that they did not want to lend money without charging interest.
Under the new proposal, Griffin would borrow $750,000 at 6% interest to construct 70 condominiums for low-income residents in a 500-unit development it is building in the city’s west end. Griffin plans to sell the homes for about $30,000 below market value.
The full council is tentatively set to consider the loan May 9.
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