Feature Photo: Left to right: Council member Dan Wright, Vice Mayor Christina Fugazi, Mayor Kevin Lincoln and member Paul Canepa at the Stockton City Council meeting on July 26. (ROBYN JONES/CONTRIBUTOR)
Stockton will loan more than $10 million to affordable housing projects that could break ground in the next two years.
The funds will contribute to seven projects that are slated to produce nearly 440 new low-income housing units throughout the city.
Stockton City Council unanimously approved the 2022 Affordable Housing Loan Program at its meeting Tuesday evening, which will consist of money that has been allocated from various federal and state funding sources, including the American Rescue Plant Act and the U.S. Department of Housing and Urban Development.
Councilmember Dan Wright described the proposed housing projects as “exciting.”
“This is one of those rare circumstances where the federal government and the local government work together to create a positive solution,” Wright said. “This is one thing that the federal government really doesn’t mess a whole lot, no matter what party ya are, because this is something that has to happen in every community.”
Stockton’s Economic Development Department released a notice of funding availability in December and was sent to more than 100 nonprofits and development organizations, according to agenda documents.
Seven applications were submitted, Ty Wilson-Robinson, Stockton Economic Development Department housing director, said. After being reviewed and ranked, all the applications — three multi-family affordable housing and four multi-family homeless housing developments — were approved for funding.
A majority of the projects are planned for locations in City Council districts 5 and 6, with just one in District 4, Wilson-Robinson said.
Once completed, the housing projects will generally target vulnerable populations, such as low-income, farm workers and their families, the homeless and those who are disabled, according to a presentation given by city staff to the Council.
Individuals and families eligible for housing in these projects will have incomes at or below 60% of Stockton’s area’s median income. Stockton’s median income is just over $58,000, according to U.S. Census data. Those eligible will have annual salaries of about $35,000 per year or less.
The loans are to be paid back at a 3% interest rate over a 55-year period, according to agenda documents. Proposed projects must also begin construction within the next two years or risk losing access to the funding.
Only 10% of the funding may go to predevelopment costs and the projects must be fully funded before receiving the rest of the loan, Wilson-Robinson said.
“You have to demonstrate to our satisfaction that you have the money to complete this entire project,” Wilson-Robinson said.