DANCO's Harbor Point Apartments will consist of 26 apartments for low-income seniors at the former El Patio Motel site. | Screenshot

Crescent City councilors dedicated 26 housing vouchers to a DANCO-led senior apartments project slated for the former El Patio Motel site.

Councilors, acting as the Crescent City Housing Authority, unanimously approved committing the vouchers to the Harbor Point Apartment project. The Council’s newest member, Kelly Schellong, pointed out that the 27-unit complex had been a topic of discussion for years.

“This is so needed and I’m so grateful we’re able to successfully move this project forward,” she said. “I look forward to helping this solve our crisis with housing.”

The Arcata-based affordable housing developer had been planning to build Harbor Point Apartments at 655 H Street using tax credits since 2015. The project would consist of 26 units for seniors and a unit for an on-site manager. They would be rented to senior citizens who are at or below 60 percent of the area median income for Del Norte County.

According to a staff report from Housing Authority Director Megan Miller on Monday, DANCO was the only organization that responded to a request for proposals offering up to 30 vouchers.

The project had been allocated 26 vouchers back in 2017, but after three years that commitment expired, Miller told council members on Monday.

“We were lucky that city staff, (grant coordinator) Bridget Lacey was paying attention, in December 2022 there was a competitive local housing allocation grant application,” Miller said. “The city applied for it and received $5 million. That brought this project back into discussion. We believe with all these pieces we can make this project happen.”

The $5 million Permanent Local Housing Allocation award and the housing-based vouchers put DANCO into a good position to receive low-income housing tax credits, Project Manager McKenzie Dibble told the City Council in July. Construction is expected to take roughly 12-15 months with apartments being available for least in 2025.

In July, the City Council approved a development and disposition agreement with DANCO to build Harbor Point Apartments. According to City Manager Eric Wier, that agreement was necessary for the project to receive tax credits.

The City Council also approved a resolution to declare 655 H Street to be exempt surplus, allowing it to be transferred to DANCO without a competitive process.

The development and disposition agreement allows the city to sell the property for the appraised value of $160,000. DANCO would also pay $750,000 in impact fees, for a total of $910,000 over 55 years at 3 percent interest. The project’s total development cost is $9.8 million.

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