Sentinel staff report–
Following two closed-door City Council sessions over the past two weeks, the city on Thursday night made public preliminary details about its involvement in property negotiations with a 130-unit senior apartment complex on Sunrise Boulevard near Old Auburn Road.
City Attorney Ryan Jones said in a brief update during an Aug. 11 City Council meeting that the council had directed the city manager to negotiate a “non-binding letter of intent” with the Colorado-based LIFE Foundation regarding the Auburn Oaks apartment property at 7501 Sunrise Blvd., with any final action to be voted on publicly in open session.
A subsequent news flash posted on the city’s website on Friday shared more details about the letter of intent, saying that the city plans to “sponsor an application for a Community Care Expansion Program (CCEP) acquisition grant to permanently dedicate Auburn Oaks Senior Apartments as low-income senior housing.” Any future plans are contingent upon the project successfully acquiring the CCEP grant, which is funded by the California Department of Social Services.
The city also confirmed that The Life Foundation is currently in contract to buy the apartments and that the nonprofit had approached the city “about collaborating to ensure the property remains in service to the local senior population.”
Under draft terms, staff plan to collaborate with the foundation to secure grant funding for senior housing, although no city funds would be committed to the project beyond staff time. “In turn, the Life Foundation would own and operate the senior housing project and perform ongoing grant administration,” the city said.
Additionally, the foundation also plans to “provide community health education programs for youth and families in Citrus Heights,” according to the city’s Aug. 12 update. Draft terms also specific the city will have “approval rights over future changes in management companies operating the property.”
As previously reported, the apartments are shown on commercial real estate listing site LoopNet for $15 million. The listing shows the two-story facility has 48 apartments and 82 assisted living units on a 3.43-acre site.
LIFE Foundation President Barnett Davis told The Sentinel in a phone interview last week he is not seeking any money from the city, only to work with the city to determine the best long-term use for the property.
“I’m trying to buy it and set it up so it can be used for the benefit of the people of Citrus Heights,” Davis said.
Davis said he is considering setting up a nonprofit organization that would own and operate the property for low-income seniors and then re-invest a portion of the profits back into the community. He said the site is unrestricted, meaning a different buyer could raise rents to market rates, while Davis said he intends to keep rental rates affordable for people with low income and seniors in the community.
