YUCCA VALLEY — The town could devote an additional $1.35 million to a 75-unit, $17 million senior housing project.
After a recent hiccup in anticipated funding, the Town Council voted 4-0-1 Tuesday, with Mayor Pro Tem Isaac Hagerman absent, to increase the town’s loan to the project from $635,000 to up to nearly $2 million.
The funding for the Dumosa Avenue housing project will come from development and storm drain impact fees as well as Local Transportation Fund dollars and anticipated payments and reimbursements from the former redevelopment agency.
Town Manager Mark Nuaimi addressed the council Tuesday with an update on $11.2 million in tax credits the town competed for.
While the town had many worthy amenities and a decent amount of local funds dedicated to the project, Nuaimi said, it wasn’t enough to qualify the project for the coveted tax credits.
He recommended allowing the town to apply for the next round of Tax Credit Allocation Committee disbursements.
“If we are unsuccessful at this point in July, we risk losing the County HOME dollars that were awarded to us by the county Board of Supervisors,” Nuaimi warned.
The town manager said the town is committed to “piecing together a financial solution to continue to deliver this project.”
To improve the chances of receiving money, town staff have cut construction costs.
Councilman Robert Lombardo called the proposal “a worthy project,” and touted the creativity town staff used to find alternative funding options while delivering new infrastructure.
The $17 million project will provide affordable housing for low-income seniors in the Morongo Basin. Development will be handled by National Community Renaissance of California.
To date, the town has committed $3.2 million toward the project, after receiving $1.6 million from the county and nearly $1.5 million in permanent financing from the U.S. Department of Agriculture.
The council was met with three minutes of silence when Yucca Valley resident Margo Sturges requested an additional two minutes to address the council on the topic. Her request was denied.
Sturges stood at the podium and faced the council in silence until her three-minute allotment ran out.
Aside from its commitment of funds, the town will not be a developer or owner of the project. According to a staff report, the town’s only role in the project will be as a lender.