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Council approves financing package and bond issuance for 79‑unit Seventh Street Village; one member recused
Summary
The council approved a TEFRA hearing and multiple resolutions to permit CMFA bond issuance, a HOME loan up to $5 million at 3% for 55 years, a license for stormwater facilities, and a $2 million CDBG loan amendment to finance the 79‑unit Seventh Street Village development; votes carried 6‑0 with one recusal.
Modesto’s City Council on Nov. 25 approved a package of financing actions to support the 79‑unit Seventh Street Village affordable rental project, following a required TEFRA hearing.
City staff said the Visionary Home Builders project is a roughly $68 million development on 7th Street with 79 units targeted to households at 30%–80% of area median income and includes community amenities such as a Head Start daycare, a community cooling center and a teen center. Staff recommended the California Municipal Finance Authority (CMFA) serve as issuer of tax‑exempt revenue bonds (requested amount up to $50 million) to finance acquisition, construction and equipping of the project. Staff emphasized the bonds would be the borrower’s responsibility and would not create a city obligation.
Council also approved a resolution authorizing a HOME program loan not to exceed $5,000,000 at 3% simple interest (accrual beginning at certificate of occupancy) to Visionary Home Builders of California, Inc., and approved a license agreement permitting private stormwater facilities in the public right‑of‑way where needed to accommodate the project footprint. The council separately approved a first amendment to a CDBG‑funded loan not to exceed $2,000,000 for predevelopment and site improvements.
The votes on the series of resolutions carried with six Ayes and one recusal; staff earlier recorded a conflict of interest on Item 12 by a council member who said they have property near the project area. City staff noted the city has already committed $2,000,000 in CDBG funds and will contribute additional staff activity funding as part of the financing package. Construction is anticipated to start in December 2025 with full occupancy expected in spring 2028 if timelines hold.
Council members repeatedly framed the approvals as a city partnership to expand affordable rental capacity and provide on‑site services.
