Only the 296-unit development, The Lyla, under construction on Bruceville Road north of Laguna Boulevard and three times the size of Cornerstone, has a higher loan at $6 million. Without Elk Grove’s help, “the developer would likely not be competitive in securing funding for the project,” city staffers said in their report.Īt more than $5.4 million, the city’s total loan to Cornerstone is among the highest the city has made for its recent affordable housing projects, including $5 million loans toward the 98-unit Bow Street and 96-unit Gardens at Quail Run I sites. They said a new city loan was the only way Cornerstone could compete for crucial state Housing and Community Development funding through its Multifamily Housing Program. will allow the project developers to apply for more than $10.4 million in state housing funding, as well as open the door to apply for yet millions more in additional tax credit funding in 2024 for the $54 million project.ĭevelopers have said rising interest rates and “exponential” increases in builder’s risk insurance pushed project costs higher, according to a city staff report. The new loan to Cornerstone developer John Stewart Co. Many are in the city’s lowest income bracket and are largely priced out of Elk Grove’s costly and competitive rental market. The project’s developers estimated about 2,100 intellectually or developmentally disabled adults reside in Elk Grove. “Looking at the uniqueness of Cornerstone Village, that’s a good mixed-housing project and it’s part of a bigger picture of what we want to see in Elk Grove,” Councilman Rod Brewer said in support of the loan and project, adding that its residents will “have a sense of belonging” in the community. ![]() But Elk Grove needs to build more than 4,200 units of housing for very-low and low-income families this decade, according to a regional housing needs analysis by the Sacramento Area Council of Governments. Wednesday’s approval of the loan increase and extension landed at a critical time for both a project under a fast-approaching July 12 deadline to apply for new financing and a city fighting California Attorney General Rob Bonta’s lawsuit over its track record on affordable housing and eager to add to its inventory.Įlk Grove has about 2,300 affordable housing units, city officials have said. Developers still anticipate a 2025 opening date, envisioning the development to be part of a “single community” with Light of the Valley.
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