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Council approves sale of city parcel for Victory Gardens affordable housing to strengthen CalHFA application; labor groups ask for local hiring safeguards
Summary
Council amended the disposition and development agreement to allow sale of a city parcel at market value with a deferred 55-year, 1% loan to improve the project's CalHFA Mixed-Income Program competitiveness; labor representatives urged the developer to meet on labor standards and local hiring.
The Vacaville City Council on March 11 approved an amendment to the Disposition and Development Agreement (DDA) allowing the city to sell a parcel at 5763 Bandon Road to the Victory Gardens developer at fair market value instead of donating the land, and to finance that purchase with a 55-year, 1 percent deferred loan to the developer.
Mutual Housing of California is the project sponsor (operating via Victory Gardens Vacaville LP) and sought the sale-to-developer structure to improve competitiveness for the California Housing Finance Agency's Mixed-Income Program (MIP) NOFA, city staff said. The council previously approved the DDA and site terms in December 2024; the March 11 amendment changes the land transfer from a $1 donation to a sale at appraised fair market value ($4,390,000), financed by a 55-year, 1 percent loan in which principal and interest payments are deferred during the loan term and the loan will be subordinated to other project financing.
Staff told the council the amendment does not increase the city's financial commitment compared with the prior $1 sale structure; the deferred loan is a financing accommodation designed to strengthen the project's CalHFA funding application and support feasibility for a project that includes units reserved for veterans.
Several union representatives, including members of the carpenters union, addressed the council during public comment and urged the developer and council to ensure the project is built with skilled, locally hired labor. They requested the developer meet with trade unions to discuss labor standards and local-hiring opportunities. The developer team did not request a labor-related condition in the DDA amendment; councilmembers asked staff to convey the unions's request to Mutual Housing.
Ending: The council approved the DDA amendment. Staff will finalize the loan documents and continue coordination with the developer; staff said they will communicate the unions's request to the project sponsor for voluntary engagement on labor standards.
