SOUTH LAKE TAHOE, Calif. — The Sugar Pine Village affordable housing project in South Lake Tahoe has received a state grant for more than $3 million, officials announced Thursday.

The California Department of Housing and Community Development awarded nearly $158 million from the Infill Infrastructure Grant program to communities throughout the state for infrastructure improvements that support the development of affordable and mixed-income housing and The Related Companies of California, LLC, received $3,195,900 for the Tahoe project.

The multi-family, mixed-use development, dubbed Sugar Pine Village, is slated to be built on two parcels of California Tahoe Conservancy asset land at the “Y” — a 9.7-acre lot at 1860 Lake Tahoe Boulevard and the neighboring 1.6-acre parcel at 1029 Tata Lane.

Meea Kang, senior vice president of Related California, told the Tribune this summer that the start date for the project is likely in 2023 after the state froze funding for nine months.

“The Newsom Administration has provided unprecedented resources to facilitate the creation of affordable housing in California,” said Business, Consumer Services and Housing Agency Secretary Lourdes Castro Ramírez in a press release. “The Infill Infrastructure Grant program supports our commitment to increase the sustainability and affordability of communities across California. We’re pleased to provide this funding to local communities for critical infrastructure improvements that will facilitate the building of housing and serve families throughout California for generations to come.”

Funded by the Veterans and Affordable Housing Bond Act of 2018 (Proposition 1), the primary objective of the IIG program is to promote infill housing development by providing financial assistance for capital improvement projects that are an integral part of or necessary to facilitate the development of infill housing. Although the program does not fund the development of the housing itself, the infrastructure it provides is necessary for housing development.

“When facing our state’s housing crisis, it’s imperative that we utilize all the tools and resources at our disposal,” said HCD Director Gustavo Velasquez. “The grant funding announced today will ultimately provide 4,000 individuals and families with safe, affordable homes, which will remain affordable for 55 years or longer, serving multiple households over time, and allowing families to break the cycle of poverty.”

Improvement projects funded by these awards will create bike lanes, curbs and gutters and allow for grading and site improvements, installation of new, larger water and sewer lines, soil stabilization, and broadband infrastructure.