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Council Set to Consider $4.9 Million Loan for Mixed-Use Project

Money would be used for Heritage Square permanent supportive housing

Published on Monday, May 11, 2020 | 3:00 am
 

The Pasadena City Council’s Economic Development and Technology (EDTECH) Committee is recommending approval of a Development, Loan and Lease Agreement between the city and Bridge Housing Inc. for the development of the mixed-use Heritage Square South permanent supportive housing and commercial project located at 762 N Fair Oaks Ave. in Pasadena. 

The City Council has scheduled deliberations on the recommendation this Monday, during its weekly meeting which is conducted by video-conference and teleconference while the COVID-19 emergency is ongoing. 

Approval of the agreement will pave the way for the city extending a $4.99 million loan assistance to Bridge Housing Inc., which will form part of the financing for the housing component of the project. Other financing support is expected out of the City’s four percent tax credit equity, and some funding from Los Angeles County. 

Heritage Square South is envisioned to be a mixed-use complex on the City-owned site. The development includes 7,500 square feet of commercial space and a 70-unit permanent supportive housing (PSH) project for homeless seniors. 

The EDTECH Committee also recommends a budget amendment that would appropriate $3,468,834 in expenditures from the Housing Successor Low Income Housing Asset Fund unappropriated fund balance, and $1,523,849 from the Inclusionary Housing Trust Fund unappropriated fund balance, to fund the proposed loan. 

The City Council approved the development concept for Heritage Square South in January 2019 and subsequently directed the Housing Department to negotiate with Bridge Housing, Inc. on the terms for the development of the site. 

According to the development concept, Heritage Square South will consist of a commercial use component with 10,000 square feet to 15,000 square feet, and a permanent supportive housing (PSH) component with up to 70 units to serve homeless seniors. 

After January 2019, the Housing Department organized a working group of community members and hosted community outreach meetings with businesses, residents and resident associations, faith-based congregations, and schools. 

Most of those who came to the meetings were supportive of the PSH project, with some community members saying they need to discuss security issues, benefits of the project to the community, and how prospective retail tenants could bring goods and services not currently available to the community. 

Before Monday’s City Council, the Housing Department and City Councilmembers received letters expressing their support for speeding up completion of the Heritage Square South project. 

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