cool the hot real estate market that ’ s driving up costs for these projects , says Mark Wiese , president and board chair at nonprofit Pacific Housing .
The pandemic also has brought in money that the City of Sacramento is using to help replace the $ 50 million bond issue . Mary Lynne Vellinga , communications director for Mayor Darrell Steinberg , says the city is using about $ 60 million in federal Coronavirus Aid , Relief , and Economic Security Act money to build 226 units of interim or permanent apartments designed to alleviate and prevent homelessness . The lost bond money and the CARES Act money aren ’ t quite comparable because the bond was to be used as leverage to attract outside capital , which would have meant multiple more units getting built . Still , “ I think it ’ s fair to say that this was a significant infusion of money to address homelessness – the most we ’ ve ever had ,” says Vellinga . “ The mayor is committed , though , to pursuing the creation of a $ 100 million housing bond .”
And there ’ s state money in the pipeline that ’ s not likely to go away . That includes the $ 900 million Newsom announced in November 2019 , using proceeds from the state ’ s greenhouse gas cap-and-trade program . There ’ s also $ 4 billion in bonds to build affordable housing for veterans that was passed through Proposition 1 in 2018 . The governor also wants to streamline approvals and consolidate state funding streams for affordable development . “ We ’ re not playing small ball on housing ,” he said soon after taking office .
Brown of the USA Properties Fund is sanguine about the future of affordable development after 30 years in the industry . “ We ’ re almost numb to being in turmoil . What doesn ’ t change is need ,” he says . “ As long as there ’ s need , there will be a way of figuring out how to do deals .”
Saunders insists the tiny apartments at 1322 O St . will get built even after the tax-credit rebuff . CADA has had to scramble to come up with another plan that will involve a $ 10 million loan from another state agency — the Department of Housing and Community Development — that has its own screening criteria and a different schedule for submitting projects for consideration .
The project scored in the top four statewide for that money , says Saunders . It ’ s why she thinks “ we ’ re in good , good position to get that $ 10 million .” If all goes well , it ’ ll break ground this summer .
Steven Yoder writes about business , real estate and criminal justice . His work has appeared in The Fiscal Times , Salon , The American Prospect and elsewhere . Online at www . stevenyoder . net and on Twitter @ syodertweet .
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