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Council approves $1.5 million rehab loan for Market Street Manor conversion to permanent housing

5528822 · August 4, 2025
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Summary

Council approved staff recommendations for a $1.5 million rehab loan from the Housing and Homeless Incentive Program fund to support Project Restoration's acquisition and conversion of Market Street Manor into permanent apartments, with repayment contingent on positive cash flow and affordability covenants attached.

The Redding City Council approved staff’s recommendation to provide a $1.5 million rehabilitation loan from the Housing and Homeless Incentive Program fund to support conversion of the Market Street Manor motel at 2171 Market Street into permanent housing operated by Project Restoration.

Nicole, a housing division staff member, presented the item and said the city previously authorized negotiation of a $1.2 million assistance agreement; staff now proposes increasing that to $1.5 million to support conversion and required upgrades. “Staff now proposes a $1,500,000 housing and homeless incentive program fund rehab loan,…

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