The Yolo County Housing Authority on Oct. 15 approved a concept to partner with developer Urban Elements (in partnership with Fulcrum) to deed-restrict 30 existing units at the KIND project in West Sacramento for 35 years and directed staff to negotiate final terms for the commission’s return in December.

The measure matters because the agreement would convert 30 units at an existing market-linked apartment complex into long-term deed-restricted affordable housing and include a short-term operating loan from Yolo County Housing to meet tax-exemption requirements.

Ian Evans, executive director for Yolo County Housing, introduced the item and said the proposal follows the same partnership model used on the Leonardo project in South Davis. Evans said the partnership would use a regulatory agreement and deed restriction to secure the affordability and that staff would return the final documents for commission approval at the December meeting.

Julie Young, president of Urban Elements, a project partner, described the KIND project as an “experiment” to deliver lower-cost workforce housing by borrowing some market-rate practices. Young said the existing West Sacramento building, which opened in 2020, filled quickly: “We were a 100% occupied in 45 days,” she said, and the project has amenity-rich common spaces and tenant supports intended to increase stability and retention.

Under the terms outlined by staff, Yolo County Housing would provide a $25,000 operating loan at 3% interest for 12 months to meet requirements for the property tax exemption tied to the affordability restrictions. Households would need to qualify at 80% of area median income (AMI) at the time of move-in; per staff comments, units could continue to qualify under existing code up to 100% AMI and still receive the applicable property tax exemption.

Commissioners voted to approve the concept and authorize staff negotiations; the motion carried unanimously among those present. Staff said the commission would see the regulatory agreement and deed restriction documents at the December meeting for final approval. Evans and project partners also said they are evaluating two additional sites in Davis and other Fulcrum-owned sites in West Sacramento for the same model.

The commission’s approval on Oct. 15 was a concept-level authorization to proceed with negotiating final terms; no final regulatory agreement or financing documents were executed at the meeting.

Provenance: The commission introduced the KIND West presentation at the meeting’s regular agenda and approved a staff-negotiation motion; staff and the project presenter provided the details above.