ANTIOCH, Calif. — Affordable housing got a boost this week when the City Council approved tax-exempt financing for a commercial real estate firm's purchase and renovation of a large apartment complex on the city's western edge.
The Antioch City Council approved the California Public Finance Authority's issuance of up to $31 million in housing revenue bonds to help The Reliant Group Inc. finance and rehabilitate Villa Medanos Apartments and keep it as an affordable housing project.
Although the action has no financial impact on the city, state law requires the purchaser to obtain city approval before moving forward with such financing. The firm plans to use the tax-exempt bonds to acquire and rehabilitate the 112-unit multifamily, affordable housing complex.
"The city's role is critical, but it is limited," Antioch Economic Director Forrest Ebbs told the council. "The city is not issuing the bonds, or tied into it financially. This is a very positive thing; this is an important affordable housing project."
Under the agreement, the units at 2811 Cadiz Lane, would be restricted as affordable housing for at least 55 years, CalPFA spokeswoman Caitlin Lanctot said.
And while the local market rate for a two-bedroom apartment is about $2,000, these units will go for about $1,400, Jason Snyder of The Reliant Group, said.
Originally built in 1987, Villa Medanos is located on 4.79 acres in a commercial town center and residential neighborhood. It includes 40 one-bedroom units, 32 two-bedroom units with one bath and 40 two-bedroom units with two baths. The apartments are for residents earning 60 percent or less of the median income, with 10 percent to be affordable for those earning 50 percent or less of the area median income.
Each unit will go under an extensive renovation, ranging from $45,000 to $55,000, Snyder said. The renovations are expected to take eight months to complete and will be done with tenants in place, he said.
Currently, there are no elevators and no handicap-accessible units at the 10-building complex. The Reliant Group intends to convert 10 percent of the units as handicap-accessible, per code, he said.
"I think this is a very positive thing. It's great to see $31 million put into a project," Ebbs said. "....These are going to be brand new units when they are done. This is an important affordable housing project and this is the type of maintenance and reinvestment we want to encourage and see, so that is why we are recommending approval."
While applauding the project, Councilwoman Lori Ogorchock asked it the percent for the disabled could be increased, noting that when another similar complex was renovated some disabled were forced out.
Snyder assured the council that the minimum amount will "definitely will be addressed."
"We certainly are not in the business of displacing residents, in particular, disabled residents at that," he said. "We are creating affordable housing here in the city of Antioch -- preserving it."
Snyder said his company is also looking at other areas of the city to rehabilitate and preserve as affordable housing.
"We're looking for ground-up (development) opportunities as well, all of which would have an affordability component as well," he said.
Councilman Lamar Thorpe applauded the project, which was later approved unanimously.
"I'm excited that this is happening," he said. "We are focusing in on a part of town that is in desperate need of some rehabilitation."
