The City of Signal Hill is planning to create two workforce housing developments on Walnut Avenue and Willow Street to address the local workforce housing needs and contribute to the community’s affordable housing stock.
The City has identified up to $10 million in funding to hire a developer for the two sites. City staff said the average cost to build each unit would be $425,000, and the potential cost to develop both housing projects is $160 million.
According to California Statewide Communities Development Authority, workforce housing is for individuals and households that earn between 60% and 120% of the Area Median Income. At times it is also known as middle-income or moderate-income housing.
The Orange Bluff site (near the intersection of Orange Avenue and 28th Street) will encompass 8.6 acres and will have up to 290 workforce housing units. The Walnut Bluff site (near the intersection of Willow Street and Walnut Avenue) will span 2 acres and have up to 90 workforce housing units.
Both sites have active, idle and abandoned gas and oil wells that developers will have to factor into their plans.
Rent for the units are planned to be under market rate, making them more affordable. City staff explained that because workforce housing projects don’t generate as much rental income as other housing properties, developers who take on these types of projects usually have to apply for a variety of federal, county, city and other funding sources to help pay for development and construction.
The City is looking for a developer that has built similar projects in other communities. City staff also said that they are looking for a developer that can provide on-site services to the residents at the two housing developments, such as promoting financial literacy and providing childcare.
According to City documents, there will be three types of units in the housing projects: rental units, homeownership units and mutual self help units (where residents help build the unit). Rental units will be income-restricted for 55 years, homeownership units for 45 years and 15 years for mutual self help units.
According to U.S. Census data, between 2010 and 2020 the population of Signal Hill increased from 11,016 to 11,848.
The number of available housing units in the city has also increased from 4,389 in 2010 to 4,632 in 2021, according to the State Department of Finance Housing data.
[A previous version of this article incorrectly stated that over 20 developers have placed bids to work on the two housing projects. In reality, over 20 prospective bidders are listed in the project’s online portal on Planet Bid.]
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