MURRIETA, CA — Three new affordable housing projects are landing in Murrieta.
Over the course of the last five weeks, Murrieta City Council has approved the issuance of millions of dollars in bonds for the apartment projects, for which the city has no financial or legal obligation to repay.
The latest occurred March 18, when councilmembers voted 5-0 to approve the issuance of up to $40 million in tax-exempt bonds for the construction of the Kensington Apartments Project near the southeast corner of Washington Avenue and Magnolia Street, across the street from Murrieta Valley High School.
The city approved the 4.7-acre, 126-unit Kensington Apartments Project in December 2022. The project includes five apartment buildings at the site, and the applicant was Pacific West Communities, Inc.
The bonds are being issued by the California Municipal Finance Authority, which was formed under joint-powers authority. To date, over 350 municipalities are CMFA members, including Murrieta.
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The CMFA was created to promote and finance, among other things, housing projects that improve the standard of living across the state. The agency does this by assisting local governments, non-profits, and businesses with the issuance of taxable and tax-exempt bonds.
The CMFA is also issuing up to $70 million in tax-exempt bonds for the construction of the Viscar Terrace Apartments at 40475 Vista Murrieta.
On March 4, City Council voted 5-0 to approve the financing. The 5.7-acre project approved by the city in June 2024 calls for 172 apartments spread across five buildings. Like the two other recently OK'd projects, occupancy will be restricted to low-income residents.
The Viscar project is being developed by the same team that funded and built the affordable housing project, Monamos Terrace Apartments at 25054 Monroe Avenue, which, according to the city, is near full occupancy.
On Feb. 18, City Council also voted 4-0 to OK the issuance of $25 million in additional bonds by the California Statewide Communities Development Authority for phase II of the Oak View Ranch Apartments that are under construction at 24960 Adams Avenue, at the corner of Ivy Street.
Phase I of the project saw the city's approval in 2023 of the issuance of $40 million in bonds by the CSCDA. A total of 200 affordable apartment units are being built at the 6-acre site, with the latest financing going toward construction of approximately 80 senior living units.
Like the CMFA, the CSCDA assists local governments with the issuance of bonds for projects. Again, the city has no financial or legal obligation to repay.
During the Feb. 18 vote, Councilmember Lisa DeForest recused herself because she has a business within 500 feet of the project.
Murrieta's recent financing approvals come amid dozens of state laws passed in recent years in response to California's housing crisis and affordability issues. The state laws, which impact all cities and counties, are designed to spur housing production and curb local government’s ability to deny housing development, especially affordable housing.