Old Town Elk Grove senior affordable housing project approved for $4.2 million loan

The project site of Old Town Elk Grove's affordable senior housing project. | 

Developers of an affordable senior housing project in Old Town Elk Grove were approved for a $4.2 million loan by the Elk Grove City Council. The unanimous approval came during the April 23 Elk Grove City Council meeting. 

The affordable housing project by Mutual Housing of California will be located on the south side of Elk Grove Boulevard near Webb Street and west of Waterman Road. The project comprises 89 units and is situated on city-owned parcels that will be conveyed to the developer upon their successful project financing.

The total cost of the project is $51 million, which is $571,000 per unit. The main funding sources include the following:

• Elk Grove subsidy - 8.4%, or $47,727 per unit
• $20,993,005 – 4% tax credits from the State of California
• $15,185,727 –  Tax-exempt bonds 
• $6,004,188 – Permanent debt 
• $1,085,193 – Deferred developer fee

Construction of the three-level structure is planned to start in February 2026, with a completion date of September 2027. Mutual Housing anticipates that the facility will be fully leased by March 2028.  

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