South Lake Tahoe City Council set to act on selling properties for affordable housing

SOUTH LAKE TAHOE, Calif. - The St. Joseph Community Land Trust (SJCLT) in South Lake Tahoe provides permanently affordable homes and supportive programs for low and moderate-income residents. They may have a few more to offer if the City Council meeting on Tuesday goes as expected.

The City owns three vacant lots on Riverside Avenue in the Al Tahoe neighborhood that are currently owned by the City's Redevelopment Successor Agency. In August 2019 the City Council directed staff to look at all lots they own to see what could be sold to generate potential revenue for housing initiatives and then voted in December to sell. The Riverside lots were thought to be perfect for SJCLT and the nonprofit agency agrees.

It is expected for the Council to vote to use general funds to buy the lots from their Successor Agency for $245,000, then turn around and sell the lots to SJCLT for $1.

"We are trying to do our part to get some deed-restricted housing projects launched," South Lake Tahoe Mayor Jason Collin told South Tahoe Now. "I believe this clearly demonstrates a commitment on the City’s behalf to get the ball rolling."

The Riverside Avenue site may accommodate from four to five permanently affordable ownership homes for Lake Tahoe Basin residents and employees, according to SJCLT. The homes will be affordable to households earning no more than 120 percent of Area Median Income, will retain affordability in perpetuity, must be the owner's primary residence and be compatible with the surrounding residential neighborhood.

To keep costs down for homeowners the land trust owns the land and the homeowner owns the home. It would be a deed-restricted property and couldn't be sold to anyone but a buyer that fits the same affordability guidelines.

The vacant lots are now currently used for vehicles parking in the dirt.

The right of SJCLT to exercise the purchase option in accordance with the provisions and conditions of this Agreement shall be conditioned on:

- No later than 180 days from the Effective Date, Optionee is required to make a
presentation to the South Lake Tahoe City Council of Optionee’s conceptual plan for development of the Property. The conceptual plan shall include site and development schematics, type of Affordable Units to be developed, ownership vs. rental units, preliminary estimated income limits served and identification of the development team.

- No later than 365 days from the Effective Date, Optionee shall submit Building
and Site Improvement Permit Applications to Optionor.

- No later than 630 days from the Effective Date, Optionee shall present
reasonable evidence, as determined in the reasonable discretion of Optionor, that Optionee has secured sufficient construction financing.

- No later than 730 days from the Effective Date, Optionee shall have (i) secured
Building and Site Improvement Permits, and (ii) secured Optionor’s approval as to form of the 99-year ground lease or other documentation required or proposed to be used related to the conveyance of Affordable Unit interests.

The City Council meeting will be held at City Hall on Tuesday, February 11 starting at 9:00 a.m.