The City Council unanimously voted to amend a Housing Loan Agreement with Heritage Housing Partners (HHP) for the development of transitional-aged youth housing in Pasadena.
The project, located at 2322 E. Foothill Blvd. will consist of six housing units for transitional-aged youth ages 18 to 24 who are homeless and at risk.
The estimated cost for the project was $2.2 million. However, when the Heritage Housing Partners moved the project forward, the budget increased by $339,500 due to unexpected costs including a fire sprinkler system.
Last May the City Council agreed to provide a $2 million loan to assist the HHP’s purchase of the property and the renovation of the existing units at the site.
In October, HHP submitted to the Housing Department a request to increase the City loan to cover the additional project costs.
Based on the approved staff recommendation, the City loan amount will be increased by $329,500 for a total amount of $2,329,500.
Originally, the $2 million loan consisted of $1.6 million City Inclusionary funds and $400,000 federal American Rescue Plan Act (ARPA) funds.
As per the approved budget amendment, the loan would provide “$1 million in new federal [HOME Investment Partnership Act] funds, decrease the Inclusionary appropriation to $1,329,500 (a decrease of $270,500), and not expend the ARPA funds ($400,000).”
Per the approved amendment to the affordable housing loan agreement, aside from the loan, HHP wil secure private grants amounting to $210,000.
A total of $200,000 will come from the Pasadena Community Foundation while $10,000 came from California Community Foundation.
“This action recognizes that there are additional costs associated with the installation of fire sprinklers,” said Mayor Victor Gordo. “It’s essential to keep the matter moving and bring us desperately needed housing for transitional age youth in partnership with the Pasadena City College.”