SOUTH LAKE TAHOE, Calif. (KRON) — As the city of South Lake Tahoe continues to suffer from a housing shortage, a new grant looks to fund hundreds of critically-needed affordable housing units.
Over the past year, the city has been able to leverage $2.4 million in local funds to secure $65 million from state and federal funding sources for the creation of a 248-unit affordable housing development called Sugar Pine Village.
In partnership with Related California and Saint Joseph Community Land Trust, the City announced Friday that the Sugar Pine Village project has been awarded $19.6 million by the California Department of Housing and Community Development’s (HCD) Multifamily Housing Program (MHP).
The housing project is authorized by the Veterans and Affordable Housing Bond Act 2018 — which aims in assisting with new construction, rehabilitation, and preservation of permanent and transitional rental housing for lower-income households.
“With this latest funding announcement, it is likely we will be able to break ground on this innovative project as early as this year,” said South Lake Tahoe Mayor Devin Middlebrook.
“The diligent work that has gone into the public-private partnership has allowed an otherwise slow process in the government sector move quickly in the face of a crisis, and is something I hope other communities can look to as a best practice for mitigating the housing crisis not just here in Tahoe, but throughout the state.”
Over the last year, housing prices have increased significantly — South Lake Tahoe home values going up 31.2%.
According to the 2020 census, the median home price rose to $950,000 in the last decade.
The Sugar Pine project is the result of Gov. Gavin Newsom’s executive order to direct the California Department of General Services (DGS), California Tahoe Conservancy (CTC), and the HCD to build cost-effective housing projects on state-owned excess sites.
The city is pushing forward in addressing its housing crisis by building more housing units, unlocking the existing housing supply, and ensuring quality housing for all residents.
“We are thrilled that Sugar Pine Village has been awarded with MHP funding by the California Department of Housing and Community Development,” said Ann Silverberg, CEO of Related California’s NorCal Affordable and Northwest Divisions.
“Thank you to HCD for providing vital funding to assist in the delivery of urgently-needed multifamily housing in the South Lake Tahoe community – and to the City of South Lake Tahoe and Saint Joseph Community Land Trust for your partnership.”
The mixed-use, affordable housing development is set to be built on two parcels of California Tahoe Conservancy surplus land in the Tahoe Valley area.
The project aims to deliver much-needed affordable, workforce housing to residents earning 30-60% of the Area Median Income (AMI) and is the largest multi-family housing project in South Lake Tahoe’s pipeline.
“The recent South Shore Housing Needs and Opportunities Study documented the severe housing shortage and resulting adverse impacts on the quality of life for residents and employers of the Tahoe Basin,” said Jean Diaz, Executive Director of Saint Joseph Community Land Trust.
“Saint Joseph Community Land Trust is extremely pleased to be the nonprofit developer partner for the Sugar Pine Village project which will bring 248 units of much-needed studio, 1, 2 & 3 bedroom workforce apartments as well as a childcare and community services facility to the Tahoe Basin. ”