Council OKs bonds for project

STOCKTON, Calif. — Another project helmed by Visionary Home Builders of California has been given a new breath.

The Stockton City Council on Tuesday voted 6-0 to issue multifamily housing revenue bonds by the California Statewide Communities Development Authority totaling as much as $20 million. The bonds, which will not be a city debt or obligate the city, will be used by Visionary to partially finance the Hunter Street Apartments project, located at 804 North Hunter St.

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The project involves turning a vacant office building into 74 housing units and includes upgrading the exterior, as well as renovating the interior of the existing structure.

According to staff, the bond funds would be used for repurposing 46 of the units, while the remaining 28 units would be financed through low-income housing credits.

The project's total cost is nearly $20 million, according to staff.

Two of the units will be occupied by on-site managers, and the remainder of dwellings will be for households with incomes between 30% and 60% of the area's median income. During a separate presentation Tuesday night, staff said the area median income for a four-person household in San Joaquin County is $66,300.

Rents are expected to range from as low as $519 a month and as high as $919 a month.

The project will include six studio apartments, 21 one-bedroom apartments, 21-two bedroom apartments and 24 three-bedroom apartments, staff said.

The repurposed complex also will include a community room, daycare and playground.

In addition, the building will be energy efficient with rooftop solar panels, insulated glass windows, high-efficiency water heaters and occupancy sensors.

The CSCDA is a joint powers authority consisting of more than 520 cities, counties and special districts across the state, including Stockton, that helps communities obtain funding for projects.

In 2017, the council approved issuing CSCDA bonds totaling as much as $30 million for the Hunter Apartments.

Visionary, however, was unable to secure all the funding needed to move forward on the project, and bond approval expired.

Councilwoman Christina Fugazi said while she supported the project, the city needs to continue looking for ways to incentivize developers to build more affordable homes.

"I love this project, and it's in my district," Fugazi said. "And while it does help with providing much-needed housing, I want more. (The council) all want more."

The city previously has issued similar bonds for multifamily housing, including $30 million for the rehabilitation of the Polo Run Apartments (8166 Palisades Drive), $16 million for the rehabilitation of the Village East Apartments (2501 E. Lafayette St.) and $15 million for rehabilitation of the Hampton Square Apartments (819 E. Hammer Lane), all of which were approved in 2016.

This next step forward for the Hunter Street Apartments project comes just weeks after the city and Visionary entered into an agreement to apply for loans from the Affordable Housing and Sustainable Communities Program.

Those loans, if awarded this summer, would provide Visionary with as much as $9.5 million in funds for its Grand View Village project located at Miner Avenue and Hunter Street.

Grand View Village is a mixed-use affordable housing project that includes about 19,000 square feet of commercial space on the ground floor -- such as a grocery store -- and 106 housing units on upper floors.

Housing units will be a mix of studios, one-bedroom, two-bedroom and three-bedroom floor plans for low-income families.

Councilman Jesus Andrade recused himself from Tuesday's discussion and vote.

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