$3.3 million conditional loan approved for Elk Grove affordable housing developer

The Elk Grove City Council approved a conditional $3.3 million loan for the developer of an affordable housing development at 8851 Bruceville Road by a unanimous vote during its April 9 meeting.

The city's affordable housing fund made the loan to Abode Communities for developing the five-acre Sheldon Farms North 240-unit apartment complex. New development fees fund that dedicated fund.

During her presentation to Mayor Bobbie Singh-Allen and her four councilmen, city housing manager Sarah Bontrager said the cost for the first phase of the project is $81 million. The per-unit cost for the one-, two-, and three-bedroom units is $662,000, of which the city will subsidize $27,643 per unit. 

"Abode is an experienced developer, this would be their first project in Elk Grove, but they have quite a few properties throughout California," Bontrager said.   

The city's loan consists of the parcel valued at $1.3 million and $2 million cash. The loan conditions call for the property to be affordable housing for 55 years, which is also the loan repayment length. 

Ms. Bontrager also noted, "We really like the inclusion of the units for adults with intellectual or developmental disabilities."

Ms. Paige Dow of Abode Communities said if the project is approved for state funding later this year, construction could start in mid-2026, with the second phase one year later.