Modesto has secured all of the money needed to erect a six-story apartment building downtown.
The low-income project is expected to open at Seventh and J streets sometime in 2027. The 79 units are a key step toward making the city’s core more dense and walkable.
A state agency on Wednesday, Dec. 11, allocated the final funding piece: $37.5 million from the sale of bonds to investors. They will get credits on their federal income taxes in exchange for reduced payments from renters.
Other state, city and nonprofit sources will help cover the roughly $70 million total cost of the project, called Seventh Street Village. Modesto is partnering on it with Visionary Home Builders of California , a nonprofit based in Stockton.
“We hear residents’ concerns about the lack of affordable housing much too often,” Mayor Sue Zwahlen said in a news release. “Seventh Street Village is one way to reduce the disparity.”
Construction will start next fall and take 18 to 24 months, said an email from Sonya Severo, public relations and legislative affairs manager for the city. The developer will need various permits, and the City Council must finalize agreements with funding sources.