Both projects help fulfill affordable housing goals under the 2025-29 Placer County Housing Action Plan, which calls for 1,300 units of achievable housing by the summer of 2029. Photo courtesy of Placer County.

AUBURN, CA (MPG) - The Placer County Board of Supervisors today approved two funding requests supporting the development of affordable housing projects in Penryn and West Placer County.

The commitment by the board will provide up to $7.26 million in financing for the first phase of the Hope Way Apartments in Penryn and establish a framework for a potential $8.9 million county loan for the Destination at Placer One affordable housing project in unincorporated Roseville.

Together, the projects could help bring nearly 500 affordable apartments to the region.

“Affordable housing is an important part of building a strong and vibrant Placer County,” District 5 Supervisor Cindy Gustafson “To achieve our goals, to keep moving forward, we have to invest in affordable housing, and that will vary from project to project as we balance our affordable housing needs with other needs in the county.”

The board approved a funding commitment for up to $7.26 million for Phase 1 of the Hope Way Apartments, a 132-unit affordable apartment community planned at 3130 Penryn Road in unincorporated Penryn.

Phase 1 will include 131 affordable rental units and one manager’s unit. The apartments will serve lower-income households with incomes ranging from 30% to 70% of the area median income. Affordability restrictions will remain in place for 55 years.

The county’s loan would be repaid over 55 years at 3% simple interest annually. The funding is derived from Bickford Ranch affordable housing in-lieu fees and would not affect the county’s general fund.

The Hope Way Project is part of a previously approved 240-unit affordable housing development. The developer is moving forward with phase 1, while the remaining 108 units would be developed as a second phase.

The board voted 5-0 to approve the agreement.

The second agreement approved Tuesday is a preliminary funding letter for the Destination at Placer One affordable housing project.

As proposed, the Destination at Placer One project includes 360 apartments, including 356 affordable units and four manager’s units. The proposal also calls for 36 units for extremely low-income households, 36 for very low-income households and 284 for low-income households.

The preliminary funding action establishes the framework for negotiations on a potential $8.9 million county loan and an investment in affordable housing units above and beyond the obligations in Placer One. The proposed loan would have a 21-year term with 3% simple interest. A final funding commitment will require additional board approval, and the project would need to secure the remaining financing.

The potential funding agreement was approved with a 4-1 vote, Supervisor Suzanne Jones voting “no.”

Both projects help fulfill affordable housing goals under the 2025-29 Placer County Housing Action Plan, which calls for 1,300 units of achievable housing by the summer of 2029. Additionally, the board has outlined a goal of delivering a diversity of achievable housing among its top priorities within the county’s strategic planning initiatives.

Other projects that have received county funding agreements to meet affordable housing goals include Parkside at Sabre City in West Placer and Mercy Housing in North Auburn.