The city of San Rafael has set aside $2.6 million in funding four affordable housing projects at 190 Mill Street in San Rafael. The project proposal includes the development of four affordable housing projects. The City Council unanimously approved the funding on Monday.
San Rafael earmarks $2.6M for affordable housing. Homeward Bound of Marin will receive a $350,000 grant for a 32-residence project at 190 Mill Street. Eden Housing will receive two loans, $850,000 for a 40-apartment project at 3301 Kerner Boulevard and $1 million for a 66-room project for older adults at 999 Third Street. Canal Alliance will receive $400,000 toward the acquisition of an apartment building in the Canal area to convert to affordable housing.
The money is coming from the city’s affordable housing trust fund. Within that trust are two accounts, a low/moderate fund, which is available for projects for low and moderate incomes.
Developers pay into the in-lieu fund to bypass San Rafael’s inclusionary housing requirement, which mandates that 10% of homes in large developments be sold or rented at below-market rates. City officials in some cases agree to lower the requirement in exchange for payments into the trust fund. There will now be $11,169 remaining in the low/moderate fund and $1.838 million in the in-lieu fee fund.
Two of the recipients previously received funding from the city through a similar process for their projects. Those payments included a $750,000 grant to Homeward Bound for the Mill Street project and an $800,000 loan to Eden Housing for the Third Street project.
The Homeward Bound project will offer permanent supportive housing for the homeless. It is under construction and due to be complete in August. The nonprofit applied for gap funding to support the $10.87 million project. The development at 999 Third St. is the senior services and housing project being done in partnership with Vivalon, a San Rafael-based senior services nonprofit formerly known as Whistlestop. Eden Housing will be granted its full request to bolster its funds of about $47.26 million for the project. Construction is expected to begin in April and be completed in the fall of 2023.
Eden Housing also requested $1.8 million for its Kerner Blvd. project, but netted $850,000. The project calls for transforming the vacant office building into 40 residences for homeless people with on-site supportive services. The project is estimated at about $30 million. Construction is set to begin in spring 2023 and take about a year to complete.
The Canal Alliance project would provide 25 to 30 affordable apartments. The nonprofit is looking to acquire and renovate a complex on Belvedere Street. The nonprofit asked for $800,000 to support the acquisition for the project that is expected to cost over $6 million.