The following is a submission from the city.
The Santa Monica City Council Tuesday approved a Housing Trust Fund loan not to exceed $35.7 million to Community Corporation of Santa Monica, or CCSM, for rehabilitation of a 40-apartment rent-controlled community at 2033-2101 Virginia Ave.
CCSM purchased the Virginia Avenue property, which was originally built in 1947-48 and in need of significant updates and repairs, when the previous owners put the property up for sale in 2020. To keep current residents housed and assist with property renovations, CCSM purchased the property, with the help of a $15.2 million Housing Trust Fund acquisition and predevelopment loan at the time of purchase.
The additional loan of $20.5 million will be used to fund construction costs for the rehabilitation of the property, including temporary tenant relocation and moving support. The rehabilitation work includes updates to gas, water, electricity utility systems, heating and cooling systems, structural repairs, garbage areas, plumbing and sewage, and lighting.
“These are individuals and families who have lived in Santa Monica for generations, many growing up in the same apartment they are now raising their own families in,” Mayor Lana Negrete said. “We are pleased the city is able to facilitate this rehabilitation, in partnership with CCSM, to keep these Santa Monicans housed and ensure they have safe and habitable living conditions.”
Existing tenants have the ability to return at their current rent-controlled rents following completion of the rehabilitation, subject to annual rent adjustments permitted by city code. Future tenancies once an apartment is vacated will be restricted to extremely low, very low, and low-income households, which are at or below 80 percent of area median income.
The rehabilitation may help the city meet its state-mandated affordable housing obligations, pending state approval.
The City Council originally authorized the additional construction loan amount following a closed session discussion on Feb. 25.
Read the full Aug. 12 staff report here and view the council discussion here.
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