A major overhaul of a low-income apartment complex in the township of Tuolumne will move forward.
Michaels Development Company this month was approved for a $3.3 million loan from a state low-income housing program to renovate the Tuolumne Apartments, Tuolumne County Community Resources Director Bev Shane said.
The affordable-housing developer owns the 52-unit Tuolumne Road complex and has sought outside funding for more than a year for renovations that include updating air systems, plumbing and electrical work, as well as adding a community room.
Shane last week said that the work is expected to begin in 2014.
The county sponsored the company’s loan application. The money comes from the state Department of Housing and Community Development.
Cost estimates for the improvements have been as high as $7 million.
The Tuolumne Apartments complex, built in the 1970s, accepts people participating in the federal Section 8 housing program. It was built with a federal grant, and because the improvements will be financed through the state grant, they will remain affordable housing for 50 years.
An application for a larger federal loan and tax credits was rejected. According to county planners at the time, the project did not qualify because it doesn’t include three-bedroom apartments. The program required 30 percent of units in a family apartment project have three bedrooms.
The apartment complex only includes one- and two-bedroom apartments.