GUSTINE - A Gustine apartment complex will receive $150,920 to be used towards property improvements following the Gustine City Council approval last Tuesday.
Meredith Manor Apartments, located at 385 Meredith Ave., will be allocated grant funding from the state’s Permanent Local Housing Allocation Program (PLHA), which provides funding for housing-related projects to local governments, that the city received following an agreement with the California Department of Housing and Community Development (HCD) in 2023.
Gustine was allocated $441,452 over a three-year period that was initially for the 2019, 2020 and 2021 funding cycles, according to the staff report. Since the city signed in the two years after the latest cycle, the full amount was distributed.
City staff, since then, have spoken with real estate firms about building housing in Gustine. However, developers weren’t interested in building due to preferring to keeping its units at the market rate or the incentive amount wasn’t enough to construct low-income units, according to the staff report.
“We’ve mentioned this funding, and there’s not been a whole lot of interest,” said Jami Westervelt, the city’s economic development director. “We’re selling something that nobody wants to buy here.”
Westervelt added that some of the funding allocated had to be spent within its five-year deadline. Since there was no interest from developers, the amount issued for 2019 and 2020 was voided. With over $150,000 left, city staff spoke with HCD about using the funds towards improvements for existing property that house low-income residents. HCD approved the idea, Westervelt said.
City staff later approached CBM Group Inc, the property management company that manages Meredith Manor, about doing enhancements to its Gustine apartment complex. Council members were presented quotes from two contractors, ABC Builders Group and Astro Paving Inc.
ABC Builders Group’s project includes removing existing utility fence perimeters around HVAC units, removal of any fungal decay and new exterior painting through all buildings. The project is expected to cost $127,885. Astro Paving’s project includes two options of removing damaged asphalt, the first option will remove 18,049 square feet of damaged asphalt, while the second option will get rid of 9,025 sq.ft. of damaged asphalt. Additionally, there are fees for removing and coating the asphalt. Construction costs could range from $94,930 to $127,419.
Mayor Patrick Nagy supported the proposal and said it could help the local residents. He added that addressing the dry rot of the apartment should be the first priority during renovations.
“I would focus on the dry rot part of it first because if you don’t pay attention to that, it’s going to cause even more deterioration in the long run,”
The plan focuses on community-based development, which is one of the six goals of Gustine’s strategic plan for 2025-2028.
