The Redding Redevelopment Agency uses a minimum of 20 percent of its tax increment revenue to increase, improve, and preserve the community’s supply of low- and moderate-income housing. Over the years, the Agency has assisted in a variety of housing endeavors resulting in the development of 594 affordable units, of which 278 are restricted to individuals or families of very-low income. Redevelopment funds have also leveraged millions of dollars from the State and Federal governments and private sector for affordable housing development.

One of the programs that is funded by the Agency’s 20 percent housing set-aside fund is the Downpayment Assistance Program (DAP). The DAP provides loans to eligible low- and moderate-income first-time homebuyers who wish to purchase their first home, but are unable to accomplish that goal without assistance.

The DAP loan is secured by a note and deed of trust on the home. It does not require monthly payments. Repayment of the loan is required when the home is sold; the family stops using it as the principal residence; or title is transferred out of the names of the original borrowers. At the time the loan is repaid, the Agency collects its original loan amount, plus a share of the homeowner’s equity.

Applicants must meet the following requirements to be eligible:

• Household income must be within guidelines established the U.S. Department of Housing and Urban Development.
• Cannot have had ownership in a home within the last three years; or if owned a home, qualify as a displaced homeowner or single parent.
• Qualify for a mortgage loan through a lender.
• Provide a downpayment equal to 5 percent of the purchase price, plus closing costs. At least 2.5 percent of the downpayment must be from your own assets, the remaining 2.5 percent and closing costs can be gifted.
• Meet DAP credit criteria.
• Be in the same line of work or with the same employer for 2-years or have income that will continue in the foreseeable future.
• Total payments on long-term debt obligations cannot exceed 12% of monthly gross income.

The home being purchased must be located within a residentially- zoned area within the Redding City limits, be occupied by the owner or vacant at least 120 days before an offer to purchase is made, and the DAP borrower must use it as a principal residence. The purchase price cannot exceed $154,000.

Depending on the annual gross household income, applicants may qualify for up to 30 percent of the purchase price, not to exceed $35,000.

For further information, please contact:
Jodi White, Housing Specialist
City of Redding - Housing Division
777 Cypress Avenue
Redding, CA 96001
(530) 225-4173

City-Wide Affordable Housing Activities
Whispering Oaks The Agency provided $250,000 to Northern Valley Catholic Social Service to assist with the acquisition of 2.1 acres of land and the development of a U.S. Department of Housing and Urban Development “811 Project” on Canby Road. In addition to an on-site manager’s unit, the project consists of 9 one-bedroom, cottage-style apartments for disabled individuals.
Shadowbrook Apartments The Agency provided a $236,000 loan to the Community Revitalization and Development Corporation to assist with the development of the Shadowbrook Apartment Project located on Hartnell Avenue. This 80-unit complex will assist in filling a housing void which currently exists for large, low-income families. The $11 million project was financed through a combination of funding sources which include Federal and California Low-Income Housing Tax Credits, a grant from the Affordable Housing Program, reimbursement of school fees, and private mortgage financing.
Laurel Glen The Agency provided a $1.1 million loan to Northern Valley Catholic Social Service for the development of Laurel Glen, a 64-unit residential complex located on Lowden Lane. This $7 million project was completed in April 2001 with additional funding from Low-Income Housing Tax Credits and private financing.
Wesley Neighborhood, Inc. The City and Agency assisted Wesley Neighborhood, Inc. with the acquisition of residences located in the heart of one of the City’s older residential areas, the Garden Tract Neighborhood. Wesley acquired 20 units, with four units proposed for demolition and 16 units for rehabilitation. Working in conjunction with the Wesley Neighborhood has provided a unique opportunity to assist and empower a neighborhood organization.
Redding Hotel Rehabilitation (Contact Person: Larry Morgon, 225-4393) The City and the Redding Redevelopment Agency have entered into a partnership with Christian Church Homes of Northern California, Inc. for the acquisition and rehabilitation of the Redding Hotel into a 49-unit senior housing project. The hotel, which fronts on the Market Street demonstration block, is an important part of the City’s plan to revitalize the Downtown area. This multi-million project not only preserved a historic community resource and dramatically improved the quality of housing units, but played a major role in Downtown revitalization.
Transitional Housing (Contact Person: Sarah Haddox, 225-4041) In 2002, the City Council and the Redding Redevelopment Agency identified a growing need in the community for additional supportive housing opportunities targeting low-income families. Supportive housing, also known as transitional housing, provides affordable housing to eligible families that personally commit to work toward overcoming barriers to achieving housing self-sufficiency. Based upon an individual assessment of each participating family’s situation, a variety of supportive services are made available to assist in achieving this goal. Services may include employment assistance, credit counseling, financial planing, substance abuse treatment, GED completion, and job training. Following the Agency’s commitment of $1 million toward the development of a transitional facility, a local nonprofit agency was selected to undertake the pre-development activities associated with the project, including site selection, project design, and environmental documentation. Tentatively, a City-owned property located at West Street and Linden Avenue has been identified as a site location and conceptual design layouts are being prepared. It is anticipated that construction of the project may commence as early as spring 2003, with completion by the end of 2003.
Heritage Plaza (Contact Person: Don Meek 225-4121) In 1998, the Redding Redevelopment Agency (Agency) adopted a five-year housing plan which focused on the revitalization of key neighborhoods. Among the neighborhoods discussed was the Benton Area. Within this area lies Heritage Plaza (Heritage), a 180-unit apartment complex, located adjacent to one of the City’s most utilized parks, Caldwell Park. Developed in the late 1960s and early 1970s as an affordable housing project, Heritage is aged and in need of rehabilitation. Heritage is currently in the process of being sold to a developer who is proposing a major rehabilitation project. To assist in the revitalization efforts of one of the City’s older neighborhoods, the City Council has approved a $663,000 loan to partially finance the acquisition and temporary relocation of Heritage’s tenants to facilitate its rehabilitation. This $6.4 million acquisition/rehabilitation project will be financed using a combination of tax exempt bonds, low-income housing tax credits, Redding Redevelopment Agency housing set-aside funds, and the City HOME funds. When completed, the community can be assured of 180 modernized units being made affordable to low-income families for the next 55 years.

For further information, please contact:
Redding Redevelopment Agency
777 Cypress Avenue
Redding, California 96001
Telephone: (530) 225-4173
Fax: (530) 225-4162
e-mail: jwhite@ci.redding.ca.us