Housing Authority

The Housing Authority should conditionally approve a 15-year extension of its loan and affordability agreement for Kay Mar Mobilehome Park, a 33-unit seniors-only mobile home community at 515 West College Avenue, extending both obligations from October 2026 to October 2041. The property owner cannot repay the $327,374 loan balance when it matures this October, and extending the loan is the only way to preserve the permanent affordability of the park for seniors earning up to 80 percent of area median income. The extension requires the property owner to make residual cash payments going forward and bring the park into full compliance with the affordability agreement, and has no fiscal impact on the city's budget.

The Housing Authority is being asked to approve up to $177,000 in rehabilitation loans to Community Support Network for emergency fire sprinkler and restroom repairs at Stony Point Commons, a 16-unit supportive housing facility for people with behavioral health needs. The facility, originally financed by the Housing Authority in 2002, needs urgent repairs to its fire safety systems and bathrooms, and staff is including $23,000 in contingency funds beyond the $154,000 in documented repair costs. The loan would extend the repayment deadline by 10 years to 2042, and the funding comes from reprogrammed Community Development Block Grant money already available to the Housing Authority, so no new budget appropriation is needed.

The Housing Authority is being asked to approve conditional loans totaling $3,642,571 to fund two affordable housing projects: $2 million to Community Revitalization and Development Corporation for Ponderosa Village Phase II (30 family units on Roseland Avenue) and $1,642,571 to Caritas Homes for Caritas Homes Phase II (64 units for people experiencing homelessness on Seventh Street). The Housing Authority received $3.6 million in funding but got two applications requesting $4 million, so staff reviewed and ranked the projects using a scoring system that evaluated readiness, affordability levels, bedroom mix, services, developer experience, and other factors, with Ponderosa Village scoring 74% and Caritas Homes scoring 73%.

The Housing Authority is being asked to approve changes to its Housing Choice Voucher Program rules to reduce spending and address a federal funding shortfall HUD notified the city about in July 2026. The proposed changes include stricter policies on voucher sizes (assigning one-bedroom units for every two household members), tighter rent increase reviews, requiring 10 percent down payments before allowing families to enter debt repayment agreements, and generally denying second repayment opportunities to families in debt. These modifications are expected to lower the amount the Housing Authority spends on rental assistance payments and strengthen program controls to prevent future budget shortfalls.