Studios likely to get funding Studios likely to get funding (December 19, 2003)

Construction of 120 efficiency units could begin in late spring

By Grace Rauh

The city's efficiency studio project is expected to secure essential state funding in January, and with the much-needed dollars in hand, construction on the affordable housing development could start as early as late spring.

Plans for the 120-unit studio complex were put on hold when the state rejected the project's initial funding application earlier this year. Charities Housing, the San Jose-based nonprofit organization selected by the City Council to develop the project, leveraged an additional $1.5 million from the county and reapplied for funding.

The second application received the highest score possible, according to city planner Adriana Garefalos, but Charities Housing will only find out if they will officially receive $4.9 million from the state after the California Housing and Community Development Department meets on Jan. 9, 2004.

"The likelihood of getting approved is very high," said Dan Wu, Charities Housing's director of housing development.

Once Charities Housing receives the anticipated funding they will apply for tax-exempt bonds to pay for the remainder of construction costs. According to Wu, the real hurdle is getting approved for Housing and Community Development funding. He expects the bonds to be approved and sold to investors with little difficulty.

The project is estimated to cost $19 million. The city has committed $5.34 million and another $1 million came from the county housing trust and the U.S. Department of Housing and Urban Development.

The three-story studio development will be built at San Antonio Circle and will house low-income residents who earn between $15,000 and $27,000 per year. The 325-square foot studios will rent for $375 to $675 per month. One quarter of the residents are expected to be seniors living on fixed incomes. Preference will be given to people who have lived in Mountain View for at least six months, or worked in the city for at least one year.

E-mail Grace Rauh at grauh@mv-voice.com

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