'ENTRY-LEVEL' HOMES GIVEN INITIAL APPROVAL.

Byline: Joseph Giordono Staff Writer

SIMI VALLEY - Hoping to address the need for privately financed affordable housing in Simi Valley, city officials have given initial approval to a 21-home, entry-level development.

The 4.4-acre project, located near Yosemite Avenue and Katherine Street, promises homes ranging from 1,600 to 2,500 square feet at an average cost of $200,000. Because the development is not backed by public money, prospective buyers would not be limited by income restrictions.

``This is the kind of project that is sorely needed in places like Simi Valley,'' developer John Hamilton said Wednesday. ``With housing prices being what they are, there are not enough options for younger people to buy their first homes. That is something we are hoping to address.''

The Planning Commission approved the development last week on a 3-2 vote. The dissenting members, Richard Kunz and Larry Fried, expressed concerns that the planned homes would be too close together and indicated they might pursue an appeal of the project.

Such action would have to be taken by Oct. 5.

According to the Ventura County Area Housing Authority, the median price of a new home in Simi Valley is $368,000.

The median selling price for all homes in the first six months of the year was $257,700, up 16 percent from the comparable period last year.

Economic analysts say that Simi Valley faces the same housing crunch likely to affect Ventura County as a whole.

``With demand and prices shooting up as they have been, combined with a lack in the supply of housing, it could reach a critical point fairly soon,'' said Mark Schniepp, director of the California Economic Forecast Project in Santa Barbara.