Yahoo Finance Developer Vows To Rebuild After Fire Destroys $155 Millon Northern California Affordable Housing Community
Affordable housing advocates and area residents were devastated when a fire destroyed a much-anticipated affordable housing development in Redwood City, California. However, they got good news when the developer, Mercy Housing California, vowed to rebuild the complex. Thankfully, there was no loss of life or injuries because the 179-unit, $155 million development was under construction when the fire hit it.
The development itself is important for more reasons than one. Redwood City is located roughly 27 miles south of San Francisco in San Mateo County. It's an expensive city to live in, even by the Bay Area's lofty standards. Zillow estimates the current median home price in Redwood City is around $1,800,000. That means a prospective homebuyer would need to earn roughly $900,000 to come up with a 20% down payment and comfortably afford the mortgage.
That might be fine for tech executives, venture capitalists, and other one-percenters, but it leaves little room for first responders, schoolteachers, or public servants to live in the city where they work. The picture is even bleaker for people who work in retail or food services. This is why exasperated workers and community leaders have beseeched local and state governments to help alleviate the affordability issue.
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City leaders and real estate analysts note that a difficult combination of land prices, building costs, and local zoning restrictions have stymied many efforts to add affordable housing in places like Redwood City. Somehow, all the stars aligned in June of 2023 when the project at 2700 Middlefield Road was announced. The funding came from multiple sources, including $78 million from California's Housing Accelerator Fund and nearly $31 million in loans from San Mateo County.
Sweetening the pie for affordable housing advocates is the fact that all the Apartments at Middlefield Road would be income-restricted. That means only people who made between 15-80% of the median annual salary in San Mateo were eligible to apply. San Mateo County Supervisor Warren Slocum enthusiastically welcomed the development by saying, "This project addresses the most critical issue facing San Mateo County by providing quality new homes that are affordable."
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Another 20 units at the development were reserved to assist homeless people, who would also receive additional support and resources from the San Mateo County Department of Health. In many ways, the Middlefield Road project represented the best of all possible worlds for affordable housing advocates and that's why there was so much excitement when construction began.
Many feared the worst when a fire ripped through the Middlefield construction site in early June. Fire crews arrived to find a burning hulk that bilged thick black smoke for hours after the fire was contained. The blaze was so intense that the authorities evacuated the neighborhood and the fire left devastation in its wake. The site was destroyed, and the only way for the project to become a reality was if the developer committed to a rebuild.
The cause of the blaze is still under investigation, but everyone got the news they wanted to hear when developer Mercy Housing California reaffirmed its commitment to the project. Company Spokesperson Rosalyn Sternberg said, "As soon as it is safe for our teams, and following a thorough investigation, we will return to work at the Middlefield Junction site to assess the damage and make a plan to move forward with construction."
Considering that millions of dollars in construction materials and labor have been lost, it's impossible to say that "all's well that ends well." However, the fact that this desperately needed affordable housing community will eventually come online is music to the ears of Redwood City civic leaders, affordable housing advocates, and 179 lucky future residents.
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This article Developer Vows To Rebuild After Fire Destroys $155 Millon Northern California Affordable Housing Community originally appeared on Benzinga.com
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