Mar 24Major Re-Construction Begins on Sunset Valley Duplexes in Wheatland
The City of Wheatland and Mercy Housing California are announcing the beginning of the re-construction of Sunset Valley Duplexes in the City of Wheatland. To celebrate the beginning of this one-of-a kind multi-phase project, Mercy Housing and City officials will commemorate the start of construction with an official “ground breaking”. The photo opportunity will take place on Tuesday morning, March 25, 10:00 a.m. at the phase I site at the intersection of Evergreen Drive and Rose Avenue, Wheatland, CA 95692. Guests of honor will include elected officials from the City of Wheatland and Mercy Housing California executive staff.
Led by the City’s commitment to improve the quality of life for its residents and modernize an aging neighborhood, Mercy Housing and City officials have been re-working the redevelopment strategy for several years. The effort to renovate the aging structures was stymied in 2009 when newly implemented flood maps for the area changed the permitting requirements. Any renovations over 50% of value required elevating floors well above the newly determined 100-year flood elevations. Raising or razing the structures became part of a complicated refinancing strategy. That planning period paid off in late 2013 with an allocation from the California Tax Credit Allocation Committee. That was followed by commitments from Wells Fargo Bank to invest in those tax credits and for a construction period loan. The California Department of Housing and Community Development also played a significant role in re-casting its prior loans to allow for the new financial structure.
Sunset Valley Duplexes is currently comprised of 88 affordable rental homes, including 43 duplexes, one 4-bedroom, one 5-bedroom house and a community building. The re-construction project includes demolishing each structure, which date back to 1961-1962, and replacing each in kind, but with modern, state-of-the-art energy efficient homes upon raised foundations above the 100-year flood elevation. Other aspects of the project include infrastructure repairs and landscaping enhancements. Construction will be carried out over 15 months in five phases to minimize the impact on residents. All current residents will move to a newly built home within the project as each phase is completed.
Wheatland Mayor Rick West said “The City has been working with Mercy Housing for several years to help make this project a reality. The entire City Council is excited to see this finally happening. The improvements in the neighborhood will not only help the residents with new housing, but also the entire community.”
Funding of $15 million for the project is being provided by Wells Fargo Bank using an allocation of Low Income Housing Tax Credits provided by the California Tax Credit Allocation Committee. Mercy Housing will remain the sponsor, owner and property manager for the new Sunset Valley Duplexes. Rural California Housing Corporation, now an affiliate of Mercy Housing, acquired the property in 1993.
“The redevelopment of Sunset Valley is remarkable and translates to clean, safe, affordable housing for the individuals and families and who call it home,” said Lori Saito, Wells Fargo Community Lending & Investment. “Wells Fargo is committed to serving our communities, and is proud to partner with Mercy Housing on yet another impactful project.”
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