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Developers say Valley View Commons financing gap could close with Homekey Plus or tax credits
Summary
Danco and county staff told supervisors the No Place Like Home/Valley View Commons affordable housing project has secured about $15 million from state sources and faces an $11 million financing gap; the developer applied for Homekey Plus and will also pursue low‑income housing tax credits as a fallback.
County staff and Danco Housing Group updated the Board of Supervisors on May 13 on the No Place Like Home (NPLH) project that will be called Valley View Commons. The project is intended to provide permanent supportive housing for populations including people with behavioral‑health needs.
Danco representative said the project currently has roughly $15 million in committed state financing and needs approximately $11 million more to close the capital stack and begin construction. The developer has pursued two parallel paths: (1) a Homekey Plus application to cover the remaining gap (a state one‑time program aimed at clearing stalled affordable housing projects) and (2) continued pursuit of low‑income housing tax credits (which the project has applied for four prior times but not yet been awarded). Danco reported it expects to hear about the Homekey Plus application by June and said that if that award is made it would require that all units be income‑restricted at extremely‑low incomes (roughly 30% of area median income) rather than some units at 50% AMI.
Why it matters: Valley View Commons is intended to provide permanent supportive housing for people experiencing homelessness and behavioral‑health needs; funding outcomes will determine whether the project moves into construction and whether building incomes/target populations shift to meet funder requirements.
Developer summary and timeline - Funding: roughly $15,000,000 currently secured; $11,000,000 financing gap reported. - Homekey Plus: the state’s one‑time Homekey Plus round is a first‑come, first‑served opportunity intended to help projects clear development backlogs; Danco said their application timing increases their chances and that award decisions should occur in June. Homekey Plus financing requires all units to be at the very low income threshold (30% AMI) for this program’s allocation. - Tax credits fallback: Danco said receipt of a new $7.5 million state HOME grant improves the project’s competitiveness for tax credit rounds (they reported earlier rounds were unsuccessful because of competition, not project merit).
Services and tenant selection Danco and county staff said units funded by No Place Like Home would target people with qualifying behavioral‑health needs or serious mental illness; services staffing and onsite management were discussed and county behavioral‑health staff will coordinate services with the project’s management. The county suggested prioritizing older adult/senior households for the 10 units previously envisioned at 50% AMI if the board agrees to convert them to lower income tiers to secure Homekey Plus funding.
Ending: The board heard that staff and the developer are pursuing two parallel financing tracks and will return with updates; if Homekey Plus funds are awarded in June, the project can move forward on that schedule, otherwise Danco will continue to pursue tax credit funding with an improved project budget.
