Habitat for Humanity Yuba Sutter seeks $7M gap funding for new housing project

The Yuba City Council meeting on March 10, 2025, focused on funding strategies for a significant housing project led by Habitat for Humanity Yuba Sutter. The organization is seeking to address a funding gap of approximately $7 million for the development, which aims to provide affordable housing in the region.

During the meeting, representatives from Habitat for Humanity outlined their financial strategies, which include generating revenue through various programs, such as the CalAIM initiative and a recently acquired storage facility. They reported an annual revenue generation of around $11 million, which, after expenses, typically leaves them with $4.5 to $6 million available for projects. The organization has already invested $3.7 million into the current project, covering land acquisition and pre-development costs.

Habitat for Humanity is actively pursuing additional funding sources, including a $1.6 million Home Fund grant and a $2 million Federal Home Loan Bank grant, which could cover nearly half of the remaining funding gap. They have also coordinated with local partners to secure fee reductions and are exploring construction gap funding options.

The council expressed concerns about the potential risks associated with financing the project, particularly if grant applications are unsuccessful. Habitat for Humanity reassured the council that they are committed to funding ongoing project costs and are exploring various funding streams to ensure the project's success.

The projected completion date for the housing project is December 2026, and Habitat for Humanity remains optimistic about securing the necessary funding to close the gap. The council's support, including a proposed allocation of $1.8 million for the project, is seen as crucial for moving forward.

As discussions continue, the collaboration between Habitat for Humanity and local government entities, including Sutter County, is expected to play a vital role in the project's advancement and overall success.