Thousand Oaks will build fewer lower-income homes and more moderate-income homes on the former Hillcrest School campus after the City Council voted to revise the Hillcrest Homes project.
The council voted 5-0 on Tuesday, Oct. 13, to approve changes to the 78-unit affordable homeownership project at 384 Erbes Road, the Thousand Oaks Acorn reported. The redesign shifts the unit mix from 59 lower-income homes and 19 moderate-income homes to 40 lower-income and 38 moderate-income.
The changes are expected to save $3 million to $4 million in construction costs, according to the Acorn's reporting. The project's estimated total development cost is now about $47.9 million.
Veronica Garcia, chief real estate development officer at People's Self-Help Housing, the nonprofit selected to develop the site, said the revised numbers reflect the subsidy the developer could count on at the time.
"We feel confident that we can deliver at least 40 homes for low-income buyers, and if we can do better, we will," Garcia told the council, according to the Acorn. She added that the developer is presenting what it knows it can deliver.
Garcia said the developer secured a state CalHome award over the summer that provides funding to support at least 40 low-income buyers. The specific dollar amount of that award was not disclosed.
Beyond the unit mix, the developer will eliminate balconies to cut construction costs and avoid ongoing inspection and maintenance expenses. The project also received permission for some walls to exceed the existing six-foot exposed height limit, reaching up to eight feet, and a waiver to keep utility lines above ground.
Four councilmembers questioned the reduction. Al Adam, David Newman, Tie Gutierrez and Bob Engler all asked why the number of lower-income homes dropped by 19, the Acorn reported.
Garcia said maximizing lower-income homes might require phasing the project, with CalHome-supported units built first and additional subsidies sought for a later phase. She said the developer would continue looking for funding before finalizing its plans.
Councilmember Mikey Taylor said he preferred completing the project in a single phase, saying the city should keep costs down and get it built.
The city purchased the former Hillcrest School property at Hillcrest Drive and Erbes Road for $10 million in 2021 to develop affordable housing. The site previously housed a hospital before becoming a school in 1976.
People's Self-Help Housing is still updating construction estimates and finalizing its financing plan. How prospective homeowners will be selected, including whether a lottery will be used, was not discussed at the Oct. 13 meeting.
City staff estimate construction will begin in March 2027.
