HomeMy WebLinkAbout11/6/2024 Item 4a, LealH~SLO
HOUSING AUTHORITY SI\N I.UIS OBISPO
November 6, 2024
Human Relations Commission
990 Palm Street
San Luis Obispo, CA 93401
Subject: Support Letter for CDBG Recommendation -HRC Meeting 11/6/2024 Item 4.a
Dear Members of the Human Relations Commission :
The Housing Authority of the City of San Luis Obispo (HASLO) is seeking funding for the 2nd phase of our
Monterey Street project to assist with the development of 51 units, including manager units, and for families
in the City of San Luis Obispo. The project will be located at 1422 Monterey Street and is a mixed-use
development containing commercial space, affordable units, and community rooms. The development is
named Monterey Family Apartments.
The proposed CDBG recommendation would reduce our current funding gap and increase our
competitiveness for State Tax Credits. As of July 12, 2023, we submitted a grant application to the State
Department of Housing and Community Development (HCD) under the Multifamily Housing Program (MHP).
We will apply for State Tax Credits ("Tax Credits") in spring 2025.
Eligibility:
Monterey Family Apartments meets the eligibility criteria for the City's Affordable Housing Fund because it
will increase the supply of affordable rental housing by constructing 50 new affordable units. The project will
be a mix of one, two, and three-bedroom units. The tenants served will range from 30-60% of area median
income for San Luis Obispo County, an income bracket that has very limited housing options. Monterey
Family Apartments anticipates receiving a commitment of 8 Project Based Vouchers, which will allow even
deeper affordability targeting. Tenants in Project Based Voucher units can be served regardless of income
levels or no income at all.
Monterey Family Apartments will be restricted as affordable housing by the Low-Income Housing Tax Credit
program for a minimum of 55 years. As an additional overlay, HASLO through its public agency status will
ensure that the housing remains permanently affordable. HASLO will manage the housing and ensure long-
term compliance with all regulatory agreements as well as financial and physical sustainability of the
property. HASLO will utilize our affiliate non-profit, San Luis Obispo Non-Profit Housing Corporation (SLONP),
as managing general partner in the Limited Partnership ownership entity formed for purposes of the Low-
Income Housing Tax Credit program.
Timing:
Monterey Family Apartments has received all local approvals and has building plans under final stages of plan
check with the City. The project is assembling various sources of financing and will apply for low-income
housing tax credits in Feb 2025. If awarded tax credits, construction is expected to begin late 2025.
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HOUSING AUTHORITY OF SAN LUIS OBISPO 487 Leff Street
PO Box 1289 San Luis Obispo, CA 93406 ph (805) 543-4478 fx (805) 543-4992 www .haslo org
First Phase -Monterey Senior :
The first phase of the project is now named Balay Ko on Monterey, a 54-unit senior project that is scheduled
to close this month and begin construction thereafter. The expected completion date is summer of 2026.
We appreciate your consideration of our funding request and are happy to answer any questions you may
have.
Sincerely,
Scott ins, Executive Director
Housing Authority of San Luis Obispo