SOUTH LAKE TAHOE, Calif. – The first phase of the Sugar Pine Village affordable housing project will begin soon, officials announced on Tuesday.

The city of South Lake Tahoe and Related California announced that the first phase will begin with site preparation and infrastructure work. Vertical construction of 68 affordable housing units will take place once building season commences in May 2023.

South Lake Tahoe Mayor Devin Middlebrook said in a news release, “This marks a significant step forward for this innovative project. The city of South Lake Tahoe is aware of the urgent need for workforce housing. There is still plenty to do, but I am incredibly happy with what we’ve accomplished thus far through this public-private partnership.”

Sugar Pine Village is a 248-unit mixed-use, affordable housing development to be built on two parcels of California Tahoe Conservancy surplus land in the Tahoe Valley area. It is a result of Gov. Gavin Newsom’s executive order to utilize excess state-owned land for affordable housing developments in response to California’s acute housing crisis. The state will retain ownership of the land through a long-term ground lease with the developer. 

“We are pleased that the Sugar Pine Village Project is on its way to providing urgently needed housing in the South Lake Tahoe community,” said Ann Silverberg, CEO of Related California’s NorCal Affordable and Northwest Divisions. “We look forward to the project’s first phase and want to thank the state of California, city of South Lake Tahoe and our many other partners for their collaboration.”

Earlier this year, the California Department of Housing and Community Development awarded the Sugar Pine Village project $19.6 million as part of its Multifamily Housing Program, which assists with new construction, rehabilitation, and preservation of permanent and transitional rental housing for lower-income households. Sugar Pine Village will deliver much-needed affordable, workforce housing to residents earning 30-60% of the Area Median Income and is the largest affordable multi-family housing project in South Lake Tahoe to-date. 

“Saint Joseph Community Land Trust works to provide a range of affordable housing for the Tahoe Basin and is the local nonprofit partner for Sugar Pine Village,” said Jean Diaz, executive director of Saint Joseph Community Land Trust. “We are thrilled to see site preparation activities begin for Phase 1 of this important project. These initial 68 units, out of the planned 248 units, will help address the critical housing crisis for the Tahoe Basin workforce.”

For more information, visit the project’s FAQ Page.