Clear Lake seeks funding to support Kenoctet Gardens housing project

In a significant move to bolster affordable housing in Clearlake, the City Council has authorized the submission of an application for funding from the California Department of Housing and Community Development. This decision, made during the regular council meeting on April 18, 2024, aims to secure financial support for the Kenoctet Gardens project, which is currently facing budgetary challenges.

City Manager Flora introduced the resolution, highlighting the pressing need for additional funding to complete the Kenoctet Gardens project. This initiative is part of a broader strategy to address housing shortages in the area. The project has already received a small allocation of funds, but rising costs have put it in a precarious financial position.

Consultant Chris Westlake provided further insights into the funding process, explaining that the city is applying for up to $2.5 million from a competitive funding pool designed to support projects like Kenoctet Gardens that are already under construction. This funding is part of the Permanent Local Housing Allocation program, which aims to fill financial gaps in affordable housing projects across California.

The council's resolution allows for flexibility in the funding amount, ensuring that if costs change before the application deadline in June, adjustments can be made without needing further council approval. Westlake noted that while the funding pool is limited, with only $12.5 million available statewide, Clearlake has a strong chance of receiving support due to the project's alignment with state housing goals.

If awarded, the funds will be managed through a standard agreement between the city and the developer, facilitating a loan structure similar to previous housing initiatives. The city anticipates learning the outcome of the funding application by fall 2024.

This proactive step by the Clearlake City Council underscores the ongoing commitment to enhancing housing options for residents, addressing a critical need in the community. As the city navigates the complexities of funding and development, the successful completion of Kenoctet Gardens could significantly impact local housing availability and affordability.