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Home My WebLink About4.6 Alameda County A-1 Bond Fund Commitment to Eden HousingSTAFF REPORT CITY COUNCIL Page 1 of 3 Agenda Item 4.6 DATE:October 5, 2021 TO:Honorable Mayor and City Councilmembers FROM:Linda Smith, City Manager SUBJECT:Alameda County A-1 Bond Fund Commitment to Eden Housing Prepared by: Kristie Wheeler, Assistant Community Development Director EXECUTIVE SUMMARY:The City Council will consider authorizing the commitment of $5,048,319 in Alameda County Measure A-1 Bond funds to an affordable rental housing project proposed at 6541-6543 Regional Street. Eden Housing would develop the 1.3-acre property with 113 units to serve very-low- and low-income seniors. STAFF RECOMMENDATION:Adopt the Resolution Authorizing the Commitment of $5,048,319 in Alameda County Measure A-1 Bond Funds from Dublin’s Base City Allocation to Eden Housing. FINANCIAL IMPACT:None. DESCRIPTION:Eden Housing proposes to develop a 1.3-acre property located at 6541-6543 Regional Street with 113 affordable rental units to serve very-low- and low-income seniors. The project would include 55 studios, 57 one-bedrooms, and one unrestricted two-bedroom manager's unit. The studios and one-bedroom units would be restricted to senior households earning between 20 and 50 percent of Alameda County area median income (AMI). The City Council is being asked to authorize the commitment of $5,048,319 in Alameda County Measure A-1 Bond funds to Eden Housing to assist with development of the proposed project. Below provides background to support the request.The City has taken the following earlier actions in furtherance of Eden’s proposed project: 85 Page 2 of 3 Land Transfer Pursuant to Bay View Group Development Community Benefit AgreementOn May 1, 2018, the City Council approved a Community Benefit Agreement (CBA) between the City and Bayview Development Group, Inc. for a 499-unit residential project at 6700 Golden Gate Drive (the St. Patrick Way Residential Project). The CBA outlined what Bayview Development Group would contribute to the City in exchange for receiving residential units from the Downtown Dublin Specific Plan (DDSP) Development Pool, including the dedication to the City or its designeeof the subject 1.3-acre property located at 6541-6543 Regional Street. The City Council approved an amendment to the CBA in April 2020 extending the term of the agreement and assigning it to Crystal Bay Development, LLC. The intent of the transfer was to provide affordable housing primarily for senior citizens and/or special needs individuals or other very-low- and low-income households.On March 16, 2021, the City Council authorized the City Manager to enter into an Option Agreement with Eden Housing’s controlled affiliate Corona Ely Ranch, Inc. for the property. As noted above, Eden Housing proposes to develop the 1.3-acre property with 113 affordable rental units to serve very-low- and low-income seniors. The project will be subject to a Community Benefit Program Agreement to be considered by the City Council at a later date, and a Site Development Review Permit that is tentatively scheduled for consideration by the Planning Commission on November 9, 2021.Local Housing Trust Fund GrantOn July 21, 2020, the City Council authorized the City Manager to submit a Local Housing Trust Fund (LHTF) grant application to the California Department of Housing and Community Development for the purpose of funding an affordable housing project on the subject 1.3-acre property. In conjunction with this authorization, the City Council reserved up to 114 residential units from the DDSP Development Pool and directed Staff to issue a Letter of Intent to Eden Housing to provide matching funds that were required to receive the grant. The matching fundsidentified in the grant application include the 1.3-acre site valued at approximately $5 million, plus $5 million from the Alameda County A-1 Bond. Prior to submitting the grant application, Staff worked with Eden Housing on a preliminaryproposal to develop between 70 and 114 units of affordable housing with a projected totaldevelopment cost of between $46 million and $74 million. On February 10, 2021, the City received notification that a LHTF grant in the amount of $3,333,333 had been awarded to the project. Alameda County Measure A-1 Bond FundsAlameda County Measure A-1 was passed in November 2016 and will fund three programs related to homeownership and two programs related to rental housing. Of the total amount allocated to the Rental Housing Development Fund, the City’s Net Base Allocation is $7,948,319. Cities have until December 31, 2021 to commit funds to specific projects. “Commitment” is defined as a City Council action to allocate funds to a project. Funds not committed before the deadline will be moved to the Regional Pool in which the city is located on January 1, 2022. 86 Page 3 of 3 The City Council committed $2.9 million of the City’s Net Base Allocation to the BRIDGE Housing proposal on Golden Gate Drive on March 16, 2021. Staff recommends that the City Council commit the remaining $5,048,319 to the Eden Housing proposal on Regional Street. The City Council Resolution authorizing the commitment of Alameda County Measure A-1 Bond Funds to Eden Housing is included as Attachment 1. STRATEGIC PLAN INITIATIVE:Strategy 3: Create More Affordable Housing Opportunities.Objective B. Look for additional opportunities to facilitate the acquisition of sites, at low or no cost,to build housing that is affordable to lower income households. NOTICING REQUIREMENTS/PUBLIC OUTREACH:The City Council Agenda was posted. ATTACHMENTS:1) Resolution Authorizing the Commitment of $5,048,319 in Alameda County Measure A-1 Bond Funds to Eden Housing 87 Attachment 1 Reso. No. XX-21, Item X.X, Adopted XX/XX/21 Page 1 of 2 RESOLUTION NO. XX – 21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN AUTHORIZING THE COMMITMENT OF $5,048,319 IN ALAMEDA COUNTY MEASURE A-1 BOND FUNDS FROM DUBLIN’S BASE CITY ALLOCATION TO EDEN HOUSING WHEREAS,in November 2016, Alameda County voters passed a $580 million Countywide Housing Bond (Measure A-1), which will fund countywide affordable housing development programs; and WHEREAS,$425 million of the Countywide Housing Bond is allocated to the Rental Housing Development fund to assist in the creation and preservation of affordable rental housing for vulnerable populations, and of that $225 million is allocated as “Base City Allocations” to Alameda County jurisdictions (including the unincorporated county); and WHEREAS,the City of Dublin’s Base City Allocation is $7,948,319; and WHEREAS,on July 21, 2020, the City Council authorized the City Manager to submit a Local Housing Trust Fund (LHTF) grant application to the California Department of Housing and Community Development (HCD) for the purpose of funding an affordable housing project on a 1.3-acre site located 6541-6543 Regional Street, authorized the reservation of up to 114 residential units from the Downtown Dublin Specific Plan (DDSP) Development Pool, and directed Staff to issue a Letter in Intent to Eden Housing to provide matching funds required for the grant. The matching funds include the 1.3-acre site, valued at approximately $5 million, and $5,048,319 from Measure A-1; and WHEREAS, Eden Housing proposes to develop the 1.3-acre property located at 6541- 6543 Regional Street with 113 affordable rental units to serve very-low- and low-income seniors. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin authorizes the commitment of $5,048,319 in Measure A-1 bond funds from Dublin’s Base City Allocation to Eden Housing for the development of 113 affordable rental units. BE IT FURTHER RESOLVED that the City Council of the City of Dublin authorizes the City Manager to submit to the Director of the Alameda County Housing and Community Development the recommendation to commit Base City Allocation funds to the affordable housing project as described above. PASSED, APPROVED AND ADOPTED this 5th day of October 2021, by the following vote: AYES: NOES: ABSENT: 88 Reso. No. XX-21, Item X.X, Adopted XX/XX/21 Page 2 of 2 ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk 89