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Yolo County Housing Authority shifts first‑phase strategy for Donnelly/Yolano repositioning to protect Choice Neighborhoods grants
Summary
Staff reported a strategic change: the first phase (Tupelo) will focus on 73 units incorporating scattered replacement units from smaller towns to avoid jeopardizing a HUD Choice Neighborhoods planning award and to preserve eligibility for future implementation funding.
Ian Evans, executive director of Yolo County Housing, on Jan. 22 updated the commission on a change in strategy for the Yolano and Donnelly public‑housing repositioning project and the first‑phase “Tupelo” redevelopment.
Evans said staff executed a HUD Choice Neighborhoods planning grant and are the co‑applicant on a $500,000 SAICOG Engage, Empower, and Implement planning grant with the City of Woodland. He also said Yolo County Housing submitted an $18,600,000 EPA environmental and climate justice grant and a $5,400,000 Sutter Health Community Benefit application and is awaiting results.
Because HUD’s Choice Neighborhoods implementation grant (which can be up to $50 million) favors mixed‑income development and because HUD planning‑grant guidance cautions against replacing target public housing before completing planning, staff said they will change the Tupelo phase strategy. Under the revised approach, staff will consolidate public‑housing replacement obligations by including 10 units in Yolo, 10 units in Knights Landing and 16 units from Esparto public housing into the Tupelo phase to meet the 50% public‑housing replacement portion HUD seeks for mixed‑income projects. The full Tupelo phase remains planned as roughly 72 rental units plus one manager unit.
Evans said the shift aims to preserve eligibility for a future Choice Neighborhoods implementation application by presenting the Tupelo phase as a mixed‑income development (roughly 50% public‑housing replacement units, 30% tax‑credit units and 20% market‑rate units, he said). Staff described ongoing partnerships with consultants UDA and CVR on the planning grant and weekly coordination with development partners.
Next steps identified by staff include continued design and land‑use approvals with the city, launching resident and neighborhood engagement required by Choice Neighborhoods (planned over the next 12–18 months), submitting the Affordable Housing and Sustainable Communities (AHSC) / ASIC application in May (staff indicated AHSC awards can be substantial) and applying for other state and federal tax credits and appropriations. Evans said construction could begin in 2026 if funding awards align.
The update noted dependencies and recent grant activity: the SAICOG planning grant execution was delayed by Caltrans funding issues but expected to be executed in the coming months; the EPA grant had a very competitive field (27,100 applications for $2 billion available) and staff were not optimistic about success; and Sutter Health’s decision on the $5.4 million application was expected imminently.
Ending: Staff will launch resident and neighborhood engagement this winter and return with additional updates as funding applications and local approvals advance.
