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.