IRIS SMOOT/Acorn Newspapers FIX UP- Last week the city agreed to provide a loan of $250,000 to assist nonprofit Many Mansions in rehabilitating the La Rahada apartments on Ashland Avenue. In addition, Many Mansions agreed to reserve eights units for extremely low-income, mentally disabled or homeless individuals. The City Council, acting in its capacity as the board of directors for Simi Valley Community Development Agency, unanimously passed a resolution last week approving an affordable housing agreement for the acquisition and rehabilitation of the La Rahada apartment complex on Ashland Avenue.

The agreement provides a $250,000 loan to help Many Mansions, a nonprofit affordable housing developer, to complete rehabilitation of the complex and reserve its eight units for extremely low-income, chronically mentally disabled or homeless individuals.

During the June 11 City Council meeting, Councilmember Michelle Foster said she visited the site and thinks the proposed project will be a good improvement for the area.

"It's very impressive when you see how Many Mansions manages their projects, not just from the aesthetic point of view, but also the ongoing support that the residents need," Foster said. "They're not just builders of affordable housing, but they're also there for people in their lives beyond getting them into housing."

The city of Simi Valley has about 300 affordable housing units, including those for seniors, said Bob Cottle, a planner with the department of environmental services.

The La Rahada apartments, located at 1036 and 1050 Ashland Ave., are immediately adjacent to the 14-unit Casa de Paz apartments, another Many Mansions property providing housing for the chronically mentally disabled and homeless.

Councilmember Steve Sojka, who sits on the city's affordable housing subcommittee, said he was concerned about creating a stigma in the neighborhood by having two affordable housing complexes next to each other in the same area.

"But I'm pleased to say that not only are they going to be renovating the inside of these units, but the outside as well," Sojka said. "So hopefully that will bring that area up a little bit as far as articulation and the look of the buildings. We want to make sure this is clean and kept up that way."

Last month, the developer received approval for a $1.4million bridge loan from nonprofit affordable housing lender Century Housing, contingent upon the approval of the $250,000 loan from the city. The bridge loan will remain in place until permanent funding is secured through the MultiFamily Housing Program and the Mental Health Service Act.

According to a city staff report, the project will be 100 percent affordable to extremely low-income households- those with an income of less than $20,000 a year. Many Mansions plans to begin tenant relocation and rehabilitation work by March 2009, with completion of the project slated for September 2009.