On Oct. 13 the Thousand Oaks City Council voted 5‑0 to adopt a revised affordable‑housing plan for the Hillcrest Homes project at 384 Erbes Road. The changes, approved by councilmembers Al Adams, David Newman, Tie Gutierrez and Bob Engler, shift the mix of units from 59 low‑income and 19 moderate‑income homes to 40 low‑income and 38 moderate‑income homes.
Why the shift?
Veronica Garcia, chief real‑estate development officer for People’s Self‑Help Housing, explained that the reduction reflects the amount of subsidy the developer can count on at this stage. “We feel confident that we can deliver at least 40 homes for low‑income buyers, and if we can do better, we will,” Garcia said. She added that maximizing low‑income units may require phasing the project, with additional CalHome‑supported units built later as more funding becomes available.
Cost‑saving design changes
To keep the project financially feasible, the developer will eliminate balconies, seek permission to raise wall heights from the existing six‑foot limit to eight feet, and obtain a waiver to keep utility lines and poles above ground. These adjustments are projected to save roughly $3 million to $4 million.
Garcia noted that higher construction costs lengthen the subsidy gap between actual building costs and what a low‑income buyer can afford with a conventional mortgage. By trimming non‑essential features, the developer hopes to narrow that gap and keep the project on track.
Funding and timeline
The project secured a state CalHome award and received its contract over the summer, providing funding to support at least 40 low‑income buyers. The overall development cost is now estimated at about $47.9 million. People’s Self‑Help Housing is still refining construction estimates and finalizing its financing plan.
City staff project that construction will begin in March 2027, with the developer reserving homes before vertical construction starts. The selection method for prospective homeowners, including whether a lottery will be used, was not discussed at the meeting.
Council reactions
Councilmembers questioned the reduction of low‑income homes, with Al Adams, David Newman, Tie Gutierrez and Bob Engler asking why the number dropped by 19. Councilmember Mikey Taylor expressed a desire to see the project completed in a single phase, emphasizing the need to keep costs down and close the affordability gap.
Garcia responded that the current subsidy level dictates the revised unit mix, but the developer will continue to seek additional funding before finalizing assumptions. She reaffirmed the commitment to deliver as many low‑income homes as possible within the constraints.
Site background
The homes will be built on the former Hillcrest School campus at Hillcrest Drive and Erbes Road. The city purchased the property for $10 million in 2021 to develop affordable housing. The site previously housed a hospital before being converted into a school in 1976.
People’s Self‑Help Housing remains the selected developer for the project, tasked with delivering a mixed‑income community that offers home‑ownership opportunities to families who might otherwise be priced out of the market.
Overall, the council’s unanimous vote reflects a pragmatic approach: adjusting the affordable‑housing plan to align with available subsidies while still preserving a substantial number of low‑income units for Thousand Oaks residents.
Original reporting: Thousand Oaks Acorn — read the source article.
