A vacant lot in Rancho Cordova will soon be the home of a large new affordable housing complex, including units for very low income residents.
The Rancho Cordova City Council on Monday approved a $50 million bond to help build the 236-unit complex. The vote, which was unanimous and without discussion, means the California Municipal Finance Authority can issue up to $50 million in multifamily housing revenue bonds for the project, according to the city staff report.
Santa Monica-based Lincoln Avenue Communities plans to build the complex at a vacant lot at the southeast corner of Sunrise and Chrysanthy boulevards, the staff report said, near Rancho Cordova’s Anatolia community.
The units will be available to tenants who earn lower incomes than many other affordable housing projects in the Sacramento area.
About half of the units will be reserved for tenants who earn between 30% and 60% area median income annually. For an individual living alone in the Sacramento region this year, that comes to salaries between $27,018 and $54,037. Those income levels typically include many homeless individuals who live outdoors and collect Social Security.
The other half of the units will be reserved for tenants who earn no more than $63,043. All will be income-restricted and none will be market rate.
Affordable housing is in high demand in the Sacramento area. As of Nov. 30, there were over 97,000 Sacramentans on the waiting list for a Housing Choice voucher, formerly known as Section 8, according to the Sacramento Housing and Redevelopment Agency.
The average rent for a one-bedroom apartment across Sacramento County as of last month was $1,331, according to Apartment List.
The project has secured a “private activity bond” from the California Debt Limit Allocation Committee, a joint powers authority the city is a member of, the staff report said. Before the bonds are issued, the committee will need to approve the terms.
The city will have no responsibility for the repayment of the bonds or the financing of the project, so it does not create any debt for the city, the staff report said.
Lincoln Avenue Communities, which did not immediately respond to an email seeking comment, plans to start construction this spring and finish it in spring 2028, said Maria Kniestedt, a city spokesperson.
The developer still needs to submit detailed plans and obtain building permits from the city before work can start, said Samantha Mott, a city spokesperson.
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