BUENA PARK : Developer Begins Talks on Affordable Housing

A developer who is asking the city for a $1.7-million loan to build affordable housing for senior citizens has started negotiations with local officials.

The City Council gave planners the go-ahead to start the meetings with KD Housing Partners of Laguna Beach earlier this week. But several members expressed concerns that the development would not move forward in time for the city to get state credit toward its affordable housing goals.

State law requires cities to provide affordable housing in blighted areas. Last year the city drafted a five-year plan that meets the requirements by setting a goal of 159 new affordable units.

The law allows cities to use property tax funds to assist developers building the projects in areas that the city has designated as blighted.

Because the project on Melrose Street would be outside a designated blight area, the city would get credit from the state for only 30 of the 59 units, said May Hui, assistant director for development services.

Councilman Donald L. Bone said he supports the project but has some reservations because the developer would need an agreement signed by December to get tax credits vital to the project. Hold-ups could cause the city to lose credits toward its affordable housing goals, he said.