Affordable housing project in South Lake Tahoe coming together, second phase underway

SOUTH LAKE TAHOE, Calif. - The first phase of Sugar Pine Village has been quickly taking form in South Lake Tahoe. In this phase, 68 rental units are being constructed from stacked modular units in three buildings. It will still be about one year until they can be lived in, but the studio, 1, 2, and 3-bedroom apartments are taking shape.

The modular units were constructed in a factory in Vallejo, California over the last winter and brought up to South Lake Tahoe where they were stored at Heavenly Mountain Resort until the land was ready along Tata Lane. They looked like freight cars wrapped in plastic when they arrived, and this summer, crews have been attaching the wood-framed units to each other in two- and three-story buildings.

Funding for the second phase was completed this week on Wednesday and crews immediately started clearing the area for that 60-apartment phase.

When completed, Sugar Pine Village will have 248 affordable housing units for the South Lake Tahoe public to rent. The third and fourth phases will each have 60 apartments. This project will provide high-quality affordable housing to approximately 800 residents.

“We are excited to see the progression with the first phase of Sugar Pine Village and the use of modular units to help expedite the construction process. This innovative process allows income-eligible residents into affordable housing at a faster rate which is crucial for our community,” said South Lake Tahoe Mayor Cristi Creegan.

During a tour this week, the lead superintendent for the project for Deacon Construction, Brandon Winters explained the process his team has been using. They've been welding the "pods" together, building up and out with the prefabricated units. The connection points for utilities were modular too, so they've been connecting all the parts. There will be no gas in this project, and all of the affordable housing apartments will be all-electric. Common areas will have solar installed. The refrigerators, stoves, toilets, and showers/tubs are already installed, along with the flooring.

When the pods arrive they have R-19 insulation already on the exteriors of each one, so when put together on site they now have R-38. The heating and air conditioning units are in each bedroom and living area, each with their own thermostat.

In the smaller buildings, there will be one common laundry area on the first floor, and in the bigger units, there is one per floor.

This winter, the crews will be working inside the winterized buildings. There have been 20-50 crew members on site daily during this building season.

There are an estimated 1,000 people on the waiting lists for all affordable housing complexes in South Lake Tahoe, but it is unknown if they are all still seeking housing. An interest list for Sugar Pine Village has been created with about 200 currently on the list. This is for interest only. It has not been decided yet if the individuals and families interested in living at Sugar Pine Village will be chosen by a lottery or first come-first serve.

Those who will be allowed to rent at the deed-restricted project will be households making a maximum of 80 percent of the Area Median Income (AMI) for El Dorado County or below. The AMI for the county in 2023 is $113,900, so a household would not be able to make over $91,120 if they were being rented today. Each phase of the project will have different income levels up to a maximum of 80 percent. The first phase that will be completed in 2024 will be for those earning 30-60 percent AMI. The financing portions of each project phase outline the percentage of AMI tied to it.

If a household income is between $34,170 and $68,360, it would be between 30-60 percent of the current AMI.

The City Council will have an item before them during their November 7 meeting to determine if they want a "locals first" policy on determining who can move into Sugar Pine Village.

The dedication of the City Council and commitment to priorities outlined in its 5-year strategic plan has played a key role in the delivery of affordable housing. In addition, the city’s strategic investment to secure outside grants, bonds, and equity investments has been essential to the funding of this project.

The Sugar Pine Village affordable housing project was made possible through the joint efforts of the California Tahoe Conservancy, California Department of General Services, California Department of Housing and Community Development, Related California, Saint Joseph Community Land Trust, and the City of South Lake Tahoe.

To get on the interest list, or for more information, visit https://sugarpinevillageslt.com/.