The Rocklin Redevelopment Agency passed a resolution last month authorizing Executive Director Carlos Urrutia to enter into an agreement to secure a $5 million line of credit.

The Rocklin City Council also serves as the city’s Redevelopment Agency and the city manager serves as the Agency’s executive director.

According to a staff report, “The purpose of the line of credit is to provide interim funding for a variety of potential affordable housing projects that are eligible to receive assistance from the Redevelopment Agency’s housing set-aside funds.”

The report goes on to say that a flexible source funding is needed for providing support for affordable housing.

“Since the line of credit is taxable, the additional restrictions of federal tax law will not apply to this funding source,” the report states.

According to Urrutia, by acting as a minor lender to affordable housing projects, the city can exert its influence to extend the affordability period.

So far, there are two existing projects that have requested funding from the redevelopment Agency; the Sunset Apartments with 102 units and Shannon Bay Apartments with 50.

“Some of these projects will no longer be required to be affordable (in just a few years). By stepping in, we can extend the affordability period to 55 years,” Urrutia said.

There are other benefits to being a minor lender.

“If we’re going to participate, we want them to be up to code,” Urrutia said, adding, “But we also want them to look nice.”

“For us, for a minor investment, we get these buildings up to code, they are more energy efficient and they look nicer,” he said.

In addition to the Sunset Apartments and the Shannon Bay Apartments, the Whitney Ranch Apartments includes a proposal to build 154 new affordable housing units.

“This line of credit also provides the Agency with the flexibility to respond to additional projects that may come forward to the Agency over the next three years,” the staff reports states.

The Agency is anticipating at least two additional projects to come over the next 24 months.

“This line of credit places the Agency in a better bargaining position with potential housing developers as we will be able to state we have funds available to help support the construction or rehabilitation of affordable housing.” Urrutia said.