Lake Forest approves $4.35 million loan to National Community Renaissance for Aspen Court affordable housing

The Lake Forest City Council and the Lake Forest Housing Authority voted unanimously to approve a $4,350,000 loan to National Community Renaissance to develop the Aspen Court affordable housing project.

City Economic Development Manager Adrian Grijalva presented the proposal, saying the site at 22471 Aspen Street was selected in part because it can be built as a "by right" project under state law and local development standards. Grijalva said the city and authority would require the project to be operated as affordable for a 55-year term and would include a dedicated room with its own entrance and restroom for Lake Forest Police Services.

The project summary shown to the council described a four-story courtyard building that staff called a 50-unit development and listed building amenities including a community room, playground, laundry and on-site property management. The staff presentation also provided a unit breakdown (21 one-bedroom, 16 two-bedroom and 14 three-bedroom units) that sums to 51 units; the record presented at the meeting does not resolve that discrepancy.

Alexa Washburn, chief development officer with National Community Renaissance, told the council the project will include a local preference in tenant selection and that Mountain View — an earlier National Community Renaissance project in Lake Forest — leased the majority of its units to Lake Forest residents during initial lease-up. "We give preference to those that live and or work within the City of Lake Forest," Washburn said.

Public speakers and local housing advocates supported the loan. Rona Henry of Welcoming Neighbors Home and Rudy Barbosa of Homes for All Lake Forest said the project would help meet the city’s regional housing obligations and provide workforce housing. Todd Caudill of CNC Development also spoke in favor.

The staff report said funding sources for the loan include the Affordable Housing Trust Fund and the Housing Asset Fund; staff noted the Housing Asset Fund currently has a surplus approaching $100,000 that must be expended by June 2027 unless otherwise used. The authority’s loan was described as required to be spent on affordable housing only. The project timeline shown by staff anticipated construction completion within 24 months of commencement and an opening in March 2028, subject to financing and construction schedules.

Council members spoke in support. Council Member Yoo, Council Member Serbo and Council Member Tetimer voiced support during the roll call. Mayor Pro Tem (unnamed in the record) moved staff’s recommendation; a second was recorded. The motion carried by unanimous voice vote (Yoo — aye; Serbo — aye; Tetimer — aye; Mayor Pro Tem — aye; Mayor — yes).

Why it matters: staff said the loan helps the city meet its state-required regional housing needs assessment (RHNA) obligations, provides family-sized units and adds nearby infrastructure and on-site management intended to reduce neighborhood impacts. The loan also uses funds that staff said must be allocated for affordable housing or risk reversion to the state if not expended within required timelines.

The council adopted the resolutions approving the loan and associated affordable housing agreement at the meeting. Staff and the developer said they will return with implementation details on timelines and lease-up procedures as financing and construction progress.