City Committee Agrees to Loan $175,000 for Affordable Housing Project

A proposed $175,000 loan agreement with the San Gabriel Valley Habitat for Humanity for a two-unit affordable homeownership project passed through the Economic Development and Technology Committee unanimously and will be sent to the full Council on Monday, December 16.

If approved, the affordable homeownership project would be the second Habitat for Humanity project in Pasadena, adding to chapter’s 11 completed homeownership projects totaling 59 units in the San Gabriel Valley.

With the City’s assistance, the Habitat for Humanity hopes to acquire 752 Manzanita Avenue. The property consists of ¼ acre vacant lot currently owned by a family trust related to a former Habitat employee. The development would include two condominium units that would be sold to eligible low-income families who live or work in Pasadena.

Habitat hopes to gain acquisition of the property by 2014, but would not schedule construction until 2016 as they will be developing the Desiderio Army Reserve Center with nine affordable homeownership units for low-income families first.

The qualified family who receives the housing will be required to contribute at least 500 hours of “sweat equity” in building their own home.

SGV Habitat for Humanity remains responsible for paying the city homebuyer loan, which will be non-interest bearing payments, deferred for 45 years. The amount, however, will be forgiven if the buyer remains in the home for the full 45-year term.

To date, no homeowner in any project built by SGV Habitat has had a mortgage default or resold their home.