Council backs pursuing ASEC funding for Mill Station affordable housing; asks for design flexibility on single‑family component

Rancho Cordova council members on Wednesday signaled support for advancing the Mill Station affordable housing project at the former Mills Crossing site and pursuing an Affordable Housing and Sustainable Communities (ASEC/ASIC) application, while remaining cautious about the market‑rate single‑family component.

Project and funding basics

Stefan Heisler, the city's housing manager, said the Mill Station affordable project would include about 60 units, a community room and outdoor play area and serve households earning up to 80% of the area median income. Staff told the council the preferred funding route is the ASEC/ASIC round that bundles housing and transportation investments; the project could be competitive because of proximity to the Hornwood light rail station. Heisler estimated a local funding gap of roughly $6.3 million and said the program could provide up to about $30 million in total awards split between housing and required transportation and bike‑ped investments.

Related, the project's developer representative, said the firm has significant ASEC experience and emphasized long‑term ownership and on‑site management as strengths. Related urged moving quickly for the May application round because program rules are shifting for future rounds.

Design review, timeline and local funding

Staff presented two design‑review approaches: (A) the traditional major design review that would need approval before applying for ASEC, and (B) a ministerial/by‑right review that would allow submittal while continuing design conversations and would provide more runway for community input. Staff outlined the schedule to submit by May and noted award notifications could come in December; construction would follow in 2027–2028 if awarded.

Council discussion and public comment

Residents raised concerns about infrastructure, emergency access, historic context along Folsom Boulevard, and putting roads in before land‑use and final designs were confirmed. Several council members said they support pursuing the ASEC application for the multifamily component while being flexible on design review (some preferring Option B to allow more design conversations). On the single family side, some members favored pausing to revisit an overall site plan; others supported continued outreach to identify feasible market developers.

Local funding implications

Staff noted existing local resources that could contribute to the local match, including $1 million from legacy community enhancement funds, approximately $9.4 million currently in the housing trust fund (projected to rise to about $11.5 million by end of 2027), and a $750,000 PLHA predevelopment commitment. Council members were asked whether backing Option A or B implied comfort with the ~ $6.3 million commitment to fill the ASEC gap; staff confirmed a funding commitment would be required by the application deadline even though actual disbursement would occur at construction.

What's next: Council gave direction to proceed with options that would allow the city to pursue the ASEC application and maintain design conversation flexibility; staff will return with final materials and a clearer funding and design timeline aligned to the May application deadline.