City staff recommends RFP for 7‑acre site and to continue affordable‑housing pipeline

City housing staff on Wednesday recommended that the Rancho Cordova City Council continue advancing its current affordable‑housing projects and issue a request for proposals for a city‑owned seven‑acre parcel in the Ranch specific plan area. The recommendation came during an affordable‑housing workshop presented by Stephen Heisler, housing manager for the city, who reviewed completed projects, projects in the pipeline and local funding available to close financing gaps. Heisler said the city has used local funding sources including land dedications, impact‑fee revenue and a housing trust fund to support developments and that staff is proposing an RFP for the 7‑acre ranch parcel “as soon as practicable.” Heisler also asked the council whether it prefers larger bond‑driven projects or smaller, target‑population projects when prioritizing limited local funds. Staff described several projects already under way or in planning: the Mather Veterans Village phases 1–3 are complete; phase 4 is proposed to add about 70 units for homeless and disabled veterans and staff said it applied for state funding in April and is “confident that construction will be starting in 2026.” Phase 5 is in site‑acquisition stages and could start construction later depending on funding. Sunrise Crossing (about 82 units) is complete; Crossings at Woodbury is a proposed 27‑unit project pursuing funding with an earliest construction start around 2027; and a low‑income component of the Mills Crossing project would aim for roughly 100 units with entitlements and a potential 2028 start. Heisler listed local resources: a housing trust fund balance of about $8,500,000 and roughly $1,000,000 of projected annual permit revenue (dependent on building activity). The city also has $2,000,000 in its Community Enhancement Investment Fund that is currently unspent but largely committed to existing projects. Developers and housing partners who spoke during public comment described projects they are pursuing and how local support would affect feasibility. Chris Hawk, founding principal of AmeriCorps Development, said his firm is under contract on a 9.5‑acre parcel in the city and is proposing a 270‑unit, 100% affordable project; Hawk urged council support for long‑term fee deferrals to bridge financing gaps and said in his experience such deferrals are repaid under 40‑year agreements. Jatin Malhotra, head of acquisitions at Cypress Equity Investments, described a proposed project at 11650 Douglas with total costs he estimated at about $65,000,000 (about $450,000 per unit) and said CFDs and fee relief could materially reduce the local funding gap on that development. Council members gave informal direction during the workshop. Multiple council members said they favor special‑purpose projects that serve defined populations — seniors, veterans or people with special needs — and supported evaluating fee deferrals on a case‑by‑case basis rather than adopting an across‑the‑board policy. Heisler said staff will prepare next steps consistent with those directions and return with additional detail. No formal motion or vote occurred at the workshop; staff recommendations were presented for council guidance. Staff and public participants identified several dependencies on state competitive funding programs and sequencing: local gap financing and predevelopment support are typically used to make applications more competitive for state bond allocations and tax‑credit awards, and successful projects often combine local, state and private funding. Heisler said the average time from project conception to construction for the city’s recent projects has commonly been about three years but that individual projects may take longer depending on funding awards and approvals.