(ELK GROVE, CA) — The April 22 City Council meeting revealed a growing crisis in affordable housing, as local developer Mike Kelley reported near-full occupancy and extensive waiting lists for Elk Grove’s affordable housing units.
(Mike Kelley discusses affordable housing units at the Elk Grove City Council meeting. Credit: Metro Cable 14 YouTube video.)
Kelley, of Kelley Ventures, shared, “The market is good, occupancy is fantastic with our projects, the apartments are at 99% occupancy. The Gardens at Quail Run 98%. And Aviary Gardens is also at 99% occupancy. The one-bedroom units have a three-year waiting list. The two-beds have a 1 1/2 year waiting list. The three beds have a 5 to 6 year waiting list. Just to give you a sense of what the demand is in the city.”
He added, “Some of you visited our most recent project, Lila on Bruceville and Laguna. Some challenges that we have had there is leasing, from the onset, I think we competed with the Mosa project and a lottery, so a lot of units came online at the same time. But we’re now at 99% occupancy. We’re about to convert. The only other challenge that we have experienced there is the rent ban that we have ranges from 30% of the area median income up to 80%. And 80% is bumping up against market rate.”
Kelley concluded with positive news: “But the good news is, and this is why I’m here today, to share with you that that project is not only on time and under budget, but we plan to return $1.6 million to you guys.”
The council responded with appreciation for the partnership and acknowledged the urgent need for more affordable housing solutions.
Submit Elk Grove story tips and ideas to Sarah Denos at sarahkdenos@gmail.com.
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