The Redevelopment Agency has authorized its staff to negotiate a loan of $750,000 for a landlord who would use it to provide 50 affordable housing units for the next 30 years.
The agency helped Town and Country Apartments owner Don McBride previously, when it issued $5.3 million in revenue bonds for the construction of the apartment complex. McBride built the 122-unit complex in 1985, dedicating 25 apartments to low-income tenants for 10 years, as required by agreement with the agency.
In 1996, McBride will no longer be obligated to provide the low-income housing, city officials said. The $750,000 loan from the agency will enable him to again offer units at below-market rates, said Susan Georgino, director of redevelopment services.
McBride has proposed making 50 units affordable. The city will control the rents, which would be between $538 and $630.
The city is required by law to provide low-income housing, Georgino said. The $750,000 loan, which is to be paid back with interest, will also benefit the Redevelopment Agency, officials said.
"This is a real win-win" situation, said Councilman Burnie Dunlap, one of the agency's directors. "We have a legal obligation and we're not going to get there without this particular project."
Added another director, Gene Leyton: "I think it's a great project."