In its effort to address housing issues in the city, the Stockton City Council approved a proposal to issue up to $50 million in tax exempt Revenue Bonds for low-income housing.
The La Passeggiata Apartments will be a 94-unit rental housing facility for low-income households at 622 East Lindsay St. in Stockton. It will consist of two buildings, five and six stories high, with a breezeway connecting them, according to the presentation of the proposal at Tuesday’s meeting.
The five-story building will have 44 one- and two-bedroom apartments and the six-story building will have 50 two and three bedroom apartments according to the legislation text of the proposal. Construction is expected to begin in 2025.
The City Council passed the proposal, which was made by the California nonprofit Visionary Home Builders of California, Inc., by a vote of 6-0, with Susan Lenz absent from the vote.
The city will not incur any liability or debt by approving the issuance of the bonds according to the legislation text of the proposal.
Visionary Home Builders only made the proposal so the city council could certify the “public benefit” of the project to facilitate financing by the California Municipal Finance Authority (CMFA). This is required by the Internal Revenue Code because the project is located within the City’s jurisdiction.
The City Council has approved the issuance of similar bonds for projects before. Earlier this year they approved the issuance of $23 million of multifamily housing revenue bonds to assist with the development of the Grand View Village Apartments. They also approved similar proposals for the issuance of bonds in 2019 and 2016.
The CMFA, who is funding the project, is a public agency comprised of multiple public agencies agreeing to work towards a common goal. Their mission is to “support economic development, job creation and social programs throughout the State of California while giving back to California communities” through bonds, according to their website. Members of the agency include Stockton and over 240 municipalities across California.