PITTSBURG -- Two new affordable housing projects are expected to help the city comply with a 2005 lawsuit settlement in which it agreed to create more homes for low-income residents.
San Francisco-based Domus Development has exclusive negotiating rights to build the projects.
Pittsburg teamed with Domus, a nonprofit developer, to build Siena Court, a 110-unit senior housing project under construction downtown.
Preliminary plans for the new projects call for a three-story building with 60 rental units in the 500 block of West 10th Street and a four-story building with 30 rental units at 901 Los Medanos St.
All of the units will be rented according to federal affordability guidelines. Rents will range from about 30 to 60 percent of the area median income, and some units will be reserved for tenants with disabilities.
Domus will pursue grants from the state and federal governments and tax credits for the projects, and the city will provide the land, but no construction funding, said assistant city manager Joe Sbranti.
"Domus has a very high success rate in getting grant funding, including $17 million for Siena Court," Sbranti said. "If they don't go out and get the money, that project doesn't happen."
Planning for the latest projects is in the preliminary stages, and the cost is still undetermined, according to Domus President Meea Kang. The City Council approved the development deals this week.
"We're looking for what makes the most sense, the most feasible project to design and implement, and we're still researching the financing options," Kang said.
The Rev. Greg Osorio, who filed the 2004 lawsuit challenging the city's housing plan, said he thinks Pittsburg has made good progress lately in developing more affordable housing.
The lawsuit contended that the housing plan favored high-end homes and limited zoning that restricts a broad range of housing options. The settlement committed the city to adding 990 units of affordable housing by 2014, of which 396 must be for people with very low incomes.
"Considering the economy, I think they're doing pretty well, producing some quality units in the process," Osorio said.
Sbranti said he was pleased with Osorio's remarks.
"Our progress on low-income housing has been slow and steady," Sbranti said. "These are difficult times, and we're doing the best we can."
Contact Rick Radin at 925-779-7166.
