Deferral necessary to meet deadline for funding
PALMDALE — The Palmdale Water District has agreed to defer payment on a portion of the developer’s fees associated with installing the necessary water systems for the Homes 4 Families veterans housing development, with a guarantee from Palmdale’s Housing Authority for the remainder.
The deferral is necessary to meet the timelines for the development’s funding through the California Department of Veterans Affairs, or Cal Vet.
The District’s Board of Directors unanimously approved the deferral without discussion as part of the consent agenda during its Dec. 16 meeting.
The 56-home housing project is being built under Homes 4 Families’ veteran enriched neighborhood model, which offers home ownership and family enrichment services to low-income veterans and their families. Complimentary “wraparound” services include financial literacy, trauma-informed care, services for military children and veteran-to-veteran support.
In order to provide the necessary water service to the neighborhood, the District requires $648,432 in capital improvement fees, according to the staff report.
Payment of these fees is a requirement before construction may begin, however, Homes 4 Families’ funding through Cal Vet is received in phases, based on the progression of construction. One such milestone is completion of the foundation pads, which requires the water systems to be installed, first.
The organization can pay one-third of the fees now, or $216,144, according to the staff report, with the remainder after it receives Cal Vet funding.
In the interim, Palmdale’s Housing Authority, which has an Affordable Housing Agreement with Homes 4 Families for development of the project, will hold back the remaining $432,288 of the capital improvement fees from the $2.8 million loan approved for the project, as a guarantee until Homes 4 Families can fulfill the payment.
The veterans neighborhood at Avenue R and Division Street is taking shape, thanks in large part
to volunteer labor. Veterans are required to complete enrichment services, including financial education and post-traumatic stress disorder programs before they move in, and contribute in sweat equity to the construction.
The first phase of the project is expected to be completed and ready for the veterans and their families to move in by the end of 2020.
Two homes have already been completed, thanks to the participation of hundreds of volunteers and the “Extreme Makeover: Home Edition” television show, in August.
Volunteers also built a community playground during the filming.