New affordable housing development breaks ground in Paso Robles: ‘A true collaboration’

A new affordable housing development broke ground Tuesday near the rolling hills and vineyards that border the southeastern edge of Paso Robles.

Sunrise Villas, a shared project between the Paso Robles Housing Authority and Affordable Housing Development Corp., formally kicked off construction of 69 affordable apartments Tuesday afternoon.

The project is located at 1600 Fontana Road, on part of the Viñedo housing development.

PRHA executive director David Cooke said the Sunrise Villas project faced several years of difficult tax credit applications and other issues before finally starting construction.

“Sunrise is a true collaboration project from start to finish,” Cooke said.

Paso Robles community development director Warren Frace first reached out to him in early 2020 about “developing affordable housing on this parcel, which we’re standing on today,” Cooke said. “Three years later, here we are.”

Sunrise Villas is projected to finish construction and welcome its first residents in around 15 months, or fall 2024, Cooke said during Tuesday’s groundbreaking event.

Here’s how PRHA, the AHDC and the city of Paso Robles got its most recent affordable housing project off the ground.

What will Paso Robles affordable housing project look like?

Construction on Viñedo — a 1,233-unit housing development also known as the Olsen-South Chandler Specific Plan — started in June 2022, with building firm Olsen 212 LLC on the job, according to Cooke.

Olsen 212 LLC is also the master builder for Sunrise Villas, Cooke said.

Cooke said the developers were grateful for the donation agreement signed with Olsen 212, which cut 3.01 acres out of Viñedo specifically for affordable housing.

By the time the dust settles on construction, Sunrise Villas will consist of 69 units, split across 16 one-bedroom units, 30 two-bedroom units and 23 three-bedroom units, Cooke said.

One-bedroom units will range between 696 and 861 square feet, while two-bedroom units will be between 1,032 and 1,116 square feet, and three-bedroom units will fall between 1,197 and 1,415 square feet, according to a January 2022 news release on the project by AHDC executive vice president Laurie Doyle.

Who is eligible for apartments?

Those apartments will be available to residents earning 30% to 60% of the area median income in San Luis Obispo County, Doyle’s release said.

For example, one person applying for an apartment would need to make $24,330 to $48,660 a year to be eligible.

A household of two would need to earn $27,810 to $55,620 annually to qualify, while a household of three would qualify with annual income of $31,290 to $62,580.

At the highest capacity, a household of seven would need to make $43,080 to $86,160 a year to qualify.

Rents will be $651 to $1,303 for one-bedroom units, $782 to $1,564 for two-bedroom units and $903 to $1,806 for three bedroom units, based on what percentage of the area median income the resident makes, Doyle’s release said.

Residents making 30% of the area median income will pay the lowest prices, while residents making 60% will pay the higher prices, Doyle’s release said.

In addition to apartments, the property will feature a residents’ center with a community room, kitchen, laundry room, computer room and office space, the release said.

Outdoors, residents can enjoy an open-air sports court, play areas, a playground, open space and an area for barbecues, the release said.

The site is also relatively close to a grocery store, pharmacy, parks, schools, restaurants and transportation, the release said.

The project was designed by Paul Davis Architects, with construction from Ashwood Construction and civil engineering from Rick Engineering Company, Cooke said.

Third time was the charm for funding

Cooke said PRHA and AHDC applied for funding through the California Tax Credit Allocation Committee’s bi-annual tax credit applications, finally succeeding on their third attempt.

The two housing organizations worked with the city of Paso Robles to complete necessary entitlements for the project to secure, Doyle said during Tuesday’s groundbreaking event.

In total, the project received around $24.5 million in tax credits from the state of California on Dec. 28, Doyle said.

“We got our Christmas a little late this year, but it was definitely worth the wait,” Doyle said Tuesday.

All told, the project will cost around $36.5 million, with Tri Counties Bank making a permanent loan of $6.4 million, the San Luis Obispop Housing Trust Fund contributing $1.2 million and the city of Paso Robles adding $1.7 million, Doyle said.

“These projects are not easy — if they were, everyone would be doing them,” Doyle said, joking that “I get another gray hair every time we do these.”

“We are looking forward to fall of 2024, when we can be sitting in a nice, air conditioned or heated community building, celebrating the 69 units full of very deserving families,” Doyle added.