California Construction News staff writer
The California Department of Housing and Community Development (HCD) has awarded nearly $52.6 million in federal disaster recovery funds to two stalled affordable housing projects in San Luis Obispo and Ventura counties, aiming to jumpstart construction of 91 rental homes for residents affected by severe winter storms in late 2022 and early 2023.
The funding, announced last week, comes through the Disaster Recovery Housing Accelerator Program (DR-ACCEL), which provides gap financing for shovel-ready projects that have secured previous state awards but were unable to proceed due to lost or delayed tax credit financing.
“Thanks to this disaster relief funding, nearly 100 homes will be built for residents affected by the winter storms in San Luis Obispo and Ventura counties,” said Tomiquia Moss, Secretary of the Business, Consumer Services and Housing Agency. “The Multifamily Housing Accelerator Program is ensuring that the State of California can coordinate resources to residents who need it the most, when they need it the most.”
HCD Director Gustavo Velasquez said the funding demonstrates how state and federal partnerships can keep developments on track despite rising costs. “While delays can increase costs until a project is no longer feasible, we were able to keep these developments on track, bringing affordable new homes to two communities who so urgently need them,” he said.
The largest award, $34 million, went to People’s Self-Help Housing Corporation to launch construction of the 42-unit Del Rio Ridge project in Atascadero. The development will provide affordable, service-enriched homes for large families and veterans at risk of homelessness and is part of a broader neighborhood revitalization effort in the city’s Del Rio Road corridor.
Cabrillo Economic Development Corporation received $18.5 million for Camino de Salud, a 49-unit affordable and permanent supportive housing project in Ojai. The development will focus on residents experiencing homelessness and high-cost health users, offering on-site services and deeply affordable units in the Ojai Valley, where housing options are limited.
The DR-ACCEL program was created using $52.6 million in federal 2020 Community Development Block Grant Disaster Recovery funding. Only nine projects across the state were eligible to apply, with two ultimately receiving awards. Both developments are expected to begin construction within six months.
