Yuba City affordable housing project in need of $7 million to keep it alive
YUBA CITY – Time is ticking to break ground on a much-needed low-income housing complex in Yuba City. The city and Habitat for Humanity Yuba-Sutter were awarded millions of dollars by the Department of Housing and Community Development, but it wasn't enough to get started.
Habitat for Humanity is struggling to come up with the full funding to get construction started and if they don't start soon, they could have to return a $24 million grant back to the state.
"Unfortunately, because of not having all the funding upfront, we're not moving forward with the project and the longer that happens, the more cost increases and delays occur," said the CEO of Habitat for Humanity Yuba-Sutter Joseph Hale.
Phase one of the proposed Merriment Village off Walton Avenue is at a standstill. It would provide more than 200 units for low-income families, veterans and seniors, complete with wrap-around services. It would also help more people get off the streets.
But in order to start construction, Habitat for Humanity Yuba-Sutter must have all the funding secured upfront.
Homekey awarded the city $24 million toward the project, but Habitat for Humanity still needs to come up with roughly $7 million.
"What we cannot do is risk seven and a half million out of our general fund when we're already in a budget deficit," said Yuba City Mayor Dave Shaw.
Habitat for Humanity has asked Yuba City to help cover the gap, but the mayor says they have their own budget concerns. And there's worry, considering there's already a deficit for just phase one of this project.
"The entire cost with the inflationary factor is somewhere between $75 and $100 million to be completely built out. They broke it into three phases. The first one is currently approximately $31 million," Shaw said.
Per the agreement, the city can't even release the $24 million until Habitat for Humanity comes up with the rest of the money. If they don't have it by the end of April, the grant would have to be returned.
"There's some options. We're hoping that if we can't get an extension, that we would be able to acquire a loan," Hale said.
"We want to see this go forward," Shaw said. "It'll bring local jobs in, it will energize our economy. But the bigger part of that, this is a project worthwhile."
CBS13 asked Hale if he has confidence in making the project happen. He responded, "I do. I think we'll make it happen and it's just going to take a little thinking outside the box. But we're no stranger to that."
The Yuba City City Council held a special meeting Monday to discuss options. The city and Habitat for Humanity are working together to secure the money.
