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City to Lend $1 Million for 22 Housing Units

August 23, 1990|MARTHA WILLMAN | TIMES STAFF WRITER

The Glendale Housing Authority has unanimously agreed to lend a developer $1 million in city funds to help pay for construction of a 22-unit apartment building for low-income seniors.

Southern California Presbyterian Homes, a longtime developer and operator of senior housing projects, is seeking to build the development on city-owned land at 549-605 E. Palmer Ave. According to the agreement endorsed by the housing authority Tuesday, the city would continue to own the land but would lease it to the developer for 55 years.

State law requires the city to set aside 20% of its portion of property taxes paid by property owners in the redevelopment area for low- and moderate-income housing. Budgeting some of those funds for the Palmer project would help fulfill the state requirement, city officials said.

In addition, the city would receive income from the lease of the land and interest payments on the loan, which it could use for future housing projects, even after the redevelopment project is ended, said Madalyn Blake, director of community development and housing.

City Council members last year had proposed setting up a long-term housing fund independent of state and federal housing subsidies. Councilmen Carl Raggio and Jerold Milner on Tuesday praised the financing concept of the Palmer project as a key to establishing a locally controlled fund.

The $1.67-million project would provide housing for lower-income seniors who would pay rents averaging $379 a month per unit, officials said.

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