'I view this as a solution': Habitat proposes 217-unit affordable housing apartment complex in Yuba City

Mar. 1—Building upon a variety of projects either currently in development or already established, Habitat for Humanity Yuba-Sutter is looking to add to a growing list of affordable housing options in the Yuba-Sutter area after revealing details Tuesday night about an ambitious 217-unit apartment complex in Yuba City that is expected to be built along North Walton Avenue.

Addressing housing needs has been a huge priority and challenge for not only the region, but the state and nation as a whole. In order to fill that need, governments have dedicated millions, if not billions, to making sure everyone who needs a home can find one. In California, a major avenue of funding has been Project Homekey, described as a "statewide effort to sustain and rapidly expand housing for persons experiencing homelessness or at risk of homelessness."

To date, California's Homekey program has housed 8,264 individuals and created 5,911 units statewide. Previously, Habitat had attempted to utilize Homekey funding for a project at the Bonanza Inn in Yuba City, but that was abruptly denied by the city during the approval process.

Now, Habitat is seeking once again to utilize not only state funding, but also federal funding to build a 217-unit complex called Merriment Village Apartments at 428 N. Walton Ave. that will make available 70 studio units, 67 one bedroom and one bathroom units, and 79 two bedroom and one bathroom units. One unit will be three bedrooms and two baths, but will be reserved for management.

The complex also will feature amenities such as community gardens, playgrounds, a community center, and a pool. It will be staffed and managed by Habitat for supportive services, as well, and include safety features for its residents.

Yuba City Vice Mayor Shon Harris said Habitat and the city have been having discussions for about a year about this specific project, which he said is meant to be an attractive addition to the area.

"What you see before you here today is the result of a lot of planning. ... It's a very nice looking facility. ... I think it's quite exciting. We also went out of our way to avoid the look of something to look kind of institutional, if you will. We want it to look pleasant," Harris said. "The theory is with all of us is, yeah, these folks are low-income residents of our city but there's no reason they should live in something that looks drab. Yeah, we want it nice but not necessarily opulent. ... It's going to provide resources on site. It's going to have a lot of things for folks who, again, just because they happen to be low income doesn't mean they don't deserve something that's decent and uplifting."

Harris, and others, stressed that Merriment Village Apartments is not meant to be for those currently experiencing homelessness and living on the streets, but rather for those who are "on the cusp" of becoming homeless and simply can't find decent affordable living options in the community.

According to Habitat officials, the project is meant to benefit young mothers with children, families with a disabled member, seniors, and veterans who all live at 30%-50% of the average median income for Sutter County. The latest U.S. Census numbers put the median income for Sutter County at $67,003.

"This complex will provide much-needed housing to families in the area and will further strengthen the local community," Habitat officials said. "We are confident that, with the city's support, we can successfully apply for the Homekey funding and build a complex that will benefit all involved. We look forward to discussing this proposal further and begin building a better future for Yuba City residents."

In order to make Merriment Village Apartments a reality, Habitat will need approval by the Yuba City City Council and a large amount of grant funding for the project.

Phase one, which is estimated to cost as much as $48.8 million, will need about $21.5 million from round three of Homekey funding, $24.5 million from Affordable Housing Sustainable Communities (AHSC) funding and about $2.7 million from the city, which will be through grant funding and not the city's general fund. Phase two of the project will cost about $25.4 million with about $13.2 million coming from AHSC funding and about $12 million from tax credits.

Yuba City Councilman Marc Boomgaarden highlighted the fact that should the council approve the Homekey application funding and should Habitat receive other grant funding, that would be money coming back to the community for its own benefit.

"Any time that we can gain money from Sacramento, we are returning our tax money here to be used in our community," Boomgaarden said. "And here is an excellent example of if we move forward with this, applying for money from the state that we have paid in taxes, we get it back here to utilize and better our own community."

Habitat anticipates that if the city council approves the Merriment Village Apartments application for Homekey and it is able to apply in the spring, construction of phase one could be completed in 2024. In a partnership with Hilbers, Inc., Habitat already has completed pre-construction planning for Merriment to show the viability of the project.

"Since the advent of COVID, there's been a lot of grant funding that has been provided into the community ... most of it related to housing," Joseph Hale, CEO of Habitat for Humanity Yuba-Sutter, said during a community meeting Tuesday night in Yuba City. "One of the biggest needs we're seeing ... is a lack of affordable housing and general housing as well. Not enough housing for people to survive. We're seeing an advent of senior citizens not being able to afford rent because the rental cost of an apartment is higher than their Social Security."

For those who may be concerned that an affordable housing complex could lessen surrounding property values, Habitat officials said that "contrary to popular belief, affordable housing can actually increase property values. Studies have shown that well-designed affordable housing projects can improve the overall aesthetic of a neighborhood and make it a more desirable place to live. This increased demand for housing can actually drive up property values over time."

Once completed, Hale said he expects Merriment to provide about $2.6 million in annual income with about $2.4 million spent in operating costs. As the project moves forward, Habitat will be accepting applications from those who need housing. He said a preference will be given to local residents who have lived in the area for at least a year and are within the income threshold that the project is meant to support. Hale said the vast majority of those who apply for housing for other area Habitat projects have lived in the area nearly all their life.

John Nicoletti, deputy director for Habitat for Humanity Yuba-Sutter, said he viewed Merriment Village Apartments as a positive step forward to solving an ever-growing issue.

"I view this as a solution. It's not nearly as big as the problem ... but it's better to have it," he said.

While there was no exact number given for what to expect as far as how much rent will be for any given unit at Merriment Village, Hale said the percentage a person will be expected to pay will be based on their income, which will be about 30%. Those who qualify for Section 8 or other funding assistance also will see reduced rents.

"These people already live here. So, we are going to be housing residents of the city of Yuba City. They are precariously housed. ... This isn't a facility where we're putting a bunch of low-income people. That is the projects that we're used to. That's what affordable housing has looked like historically," Cami Thomas, administrative officer for Habitat for Humanity Yuba-Sutter, said. "This facility is completely different. The reason I'm excited about this project is that these kids are growing up in a facility where maybe mom's 18 years old or a teenager or they're just struggling, this gives their parents the opportunity to actually say they're not working two jobs to pay the rent ... their parents are more present, they don't have to work so much. ... This is an incredible project. To be able to be that difference."