Glendale gives blessing for $13-million bond deal for senior housing project

An affordable housing developer is set to receive $13 million in private revenue bonds to rehabilitate a 98-unit building in Glendale for “very low” income seniors.

This is the second time this year Southern California Presbyterian Homes has requested private, tax-exempt revenue bonds to carry out repairs. In August, it requested $20 million from a state finance authority to repair Glendale’s oldest affordable housing development, Casa de la Paloma.

The bonds are a way to do needed repairs — such as improving disability access, heating systems and exterior paint — as other revenue streams for affordable housing become more difficult to come by.

The City Council on Tuesday approved the bonds, which will be issued by the California Municipal Finance Authority, a joint powers group that supports economic development. The state requires that a local elected public body must conduct a public hearing to approve the request.

“We’re merely blessing the bonds to be issued,” said Councilman Ara Najarian.

The bond financing will be used for Park Paseo at 123 S. Isabel St. Developed in 1984, the complex is set to remain affordable with support from federal housing subsidies, such as Section 8 vouchers, through 2024.

With the $13 million in bonds, Park Paseo could remain affordable through 2068, according to a city report.

“On the positive side, we’re looking to hold affordable units for an extended amount of time,” said City Manager Scott Ochoa.

Glendale’s Housing Authority spent $1.2 million developing Park Paseo. Southern California Presbyterian Homes paid the city back $500,000.

Both sides are negotiating a final payoff, but if a settlement can’t be reached, city officials could oppose the bonds release at a later date.