Fifth Street Affordable Housing Project Awarded Funding for Mutual Housing

(From Press Release)—State officials have announced that Mutual Housing California has been approved for two major funding awards under the Proposition 1 Veterans and Affordable Housing Act that voters approved in 2018.

In awards that were granted by the state Department of Housing and Community Development, the proposed Lavender Courtyard by Mutual Housing community in midtown Sacramento will receive $11.3 million and the Mutual Housing at 5th Street community in Davis has been approved for $9.4 million.

The awards were among the first to come out of the state as a result of the passage of Proposition 1.

“For more than 30 years, Mutual Housing California has built, rehabilitated and operated some of the highest quality nonprofit affordable housing communities in Northern California,” said Holly Wunder Stiles, Mutual Housing’s director of housing development. “We are proud and honored to be given these opportunities created by California voters to increase the supply of affordable housing as we work with the state and our local governments to address California’s critical shortage of housing that working families and even currently homeless people can afford to call home.”

Under Proposition 1, state voters authorized $4 billion in bond funding for a variety of housing programs, including $1.5 billion for the Multifamily Housing Program to fund affordable housing construction and preservation for people with low to extremely-low incomes.

The state housing agency approved the Mutual Housing awards in its first round of Multifamily Housing Program funding announced on Dec. 19.

The Lavender Courtyard award came on top of a $2.5 million grant Mutual Housing received last year from The Harry and Jeanette Weinberg Foundation in Owings Mills, Md. The Sacramento City Council in December also recommitted to a $1.9 million loan of its federal HOME funds for Lavender Courtyard. With approval of the new state loan commitment in hand, Mutual Housing will now apply for $10.5 million in state and federal low-income housing tax credits which it will use to attract the private investment needed to start construction for the new Lavender Courtyard development.

On Mutual Housing at 5th Street, the award of the state loan follows a $2 million commitment and a contribution of one acre of land by the city of Davis and the developer of a larger, market-rate student housing apartment complex at the same location. The City of Davis has awarded $414,000 in federal HOME funds and the San Francisco Federal Home Loan Bank has awarded $370,000 from its Affordable Housing Program. Additional approvals for $11.4 million in state and federal tax credits are still needed to attract the private investment that will allow Mutual Housing to complete the new development.

Mutual Housing will apply for the tax credits on Jan. 17. If the applications are approved, construction could begin this year at both sites.

Lavender Courtyard, to be located at 16th and F street in midtown Sacramento, will be marketed for older, lower-income LGBTQ adults. Twenty apartments at Lavender will be designated as permanent supportive housing for people coming out of homelessness with specialized supportive services provided by Lutheran Social Services of Northern California.

Mutual Housing at 5th Street at 2050 5th St. in Davis will consist of 38 apartments, 17 of which will be set aside for youth who are transitioning out of the foster-care system yet still offered transitional supports through the Yolo County Health and Human Services Agency. The other 21 apartments will house working families with incomes ranging from 30 percent to 40 percent of the area median.

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