Kensington campus

The City of Lancaster will help Kensington Campus developers with the final phase of construction, approving a loan agreement equal to the amount of development impact fees for the campus’ final phase.

LANCASTER — Kensington Campus developers will get assistance from the City as the final phase of construction begins.

The Lancaster Housing Authority on Tuesday night unanimously approved a loan agreement with No More Lemons limited liability company in the amount of $436,505, which is equivalent to the amount of development impact fees for the final phase of the campus.

The agreement mirrors previous phases where all impact fees for the project have either been waived or provided via loan agreements such as this one, according to a staff report.

The loan funds will come from the Housing Authority’s Low and Moderate Income Housing Fund. State law requires that at least 30% of the funds be spent on development of rental housing affordable to and occupied by households earning 30% or less of area median income, for which Kensington qualifies, according to the report.

Also at Tuesday’s meeting, the City Council unanimously approved a subrecipient agreement between the city and The People Concern to provide $150,000 from the 2019-20 Community Development Block Grant program year funds for Kensington Campus infrastructure. The money will help offset the cost of a Southern California Edison electrical connection for phase three of the project.

Part of the Coronavirus Aid, Relief, and Economic Security Act funding to the US Department of Housing and Urban Development made available supplemental Community Development Block Grant funds to provide grants to prevent, prepare for, and respond to the COVID-19 pandemic, according to a staff report.

Lancaster received a special allocation of $874,303 in Community Development Block Grant and CARES Act funding.

The City collaborated with InSite Development, Los Angeles County, and The People Concern to build Kensington Campus. The innovative facility currently has 102 permanent supportive housing units as well as 156 bed for interim housing. The final phase will add 52 more permanent supportive housing units. Once complete, the campus will have 309 total beds. Half of the beds are dedicated to temporary housing; the other half to permanent supportive housing.

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