Business Services
2060 Challenger Drive
Alameda, CA 94501
Phone 510.337.7066
Fax 510.521-0529
www.alamedaunified.org
December 15, 2021
Lisa Nelson Maxwell
Community Development Director
City Hall West
950 West Mall Square, Suite 205
Alameda, CA 94501
RE: Request to the Successor Agency to the Former Community Improvement Commission of the City of Alameda to Approve a Development List of an Affordable Housing Project and Funding Request for such Project
Dear Ms. Maxwell,
First, I hope you and others at the City of Alameda are well.
Second, for the following reasons, the Alameda Unified School District ("AUSD") requests that the Successor Agency to the former Community Improvement Commission of the City of Alameda ("Successor Agency") conduct a noticed public hearing concerning, and then approve, the attached Development List of Affordable Housing Projects and Funding Requests for such Projects.
AUSD is a party to a pass-through agreement ("Pass-Through Agreement") with the Successor Agency. The Pass- Through Agreement provides for establishment of a District Housing Fund to be used for eligible affordable housing purposes that are identified by AUSD. As described below, AUSD is requesting release of funds held in the District Housing Fund to the Alameda Housing Authority of the City of Alameda ("AHA") to be used for eligible affordable housing purposes consistent with the terms of the Pass-Through Agreement.
In 2018, AUSD entered into a Memorandum of Understanding ("MOU") with AHA whereby AHA agreed to assist AUSD with its obligations under the Pass-Through Agreement to use funds to increase the supply of low-income housing in a manner that addresses the housing needs of the District's qualifying· employees. Under the terms of the MOU, AHA makes periodic funding requests to AUSD to fund eligible affordable housing projects that are consistent with the terms of the Pass-Through Agreement and MOU. Once a funding request is approved, funds available under the Pass-Through Agreement are authorized to be transferred directly to AHA (per MOU Section 6A).
AUSD is requesting the Successor Agency at a public hearing scheduled for January 4, 2022 to approve a Development List of two affordable housing projects -- Rosefield Village and 2615 Eagle Avenue -- along with a Funding Request for those Projects, which are described in more detail in subsequent paragraphs.
As a reminder, Rosefield Village is an existing Housing Authority property previously approved by AUSD for funding under the terms of the MOU. Rosefield Village will be redeveloped to increase the total number of affordable apartments. The property currently includes 53 housing units. The redevelopment project will demolish 40 of these units and replace them with a new 78-unit apartment building with community spaces and on-site property management offices. Additionally, five of the other buildings on the property will be renovated. When complete, the $77 million redevelopment and renovation project will provide 92 rental units. The project will be
www.alamedaunified.org
Business Services
2060 Challenger Drive
Alameda, CA 94501
Phone 510.337.7066
Fax 510.521-0529
affordable to households earning between 20-80% of Area Median Income ("AMI"). Construction of this Project began in late summer of 2020.
Funding the Rosefield Village Project satisfies required conditions under the Pass-Through Agreement. Conditions include that the project meets applicable requirements under the Community Redevelopment Law, the terms and conditions of the Pass-Through Agreement, the Guyton Judgment and Settlement Agreement and the City's Housing Element of the General Plan. Previously, the Successor Agency approved Rosefield Village as part of AUSD’s FY 2020-21 and FY 2021-22 Development Lists and Funding Requests. This current request extends this approval and increases the amount of funding to include the estimated District Housing Fund monies available for FY 2022-23.
2615 Eagle Avenue consists of approximately 1.05 acres on two adjacent parcels owned by AUSD. AUSD offered the parcels for sale and received a single response from the Housing Authority. The proposed project is a 23-30 unit housing development of one-, two- and three-bedroom units.
This project is consistent with the Pass-Through Agreement, the Community Redevelopment Law, and the Guyton Agreement, as it is located adjacent to and will benefit the former BWIP, is serving households earning a maximum income of 80% of AMI and will set-aside a certain number of units for eligible AUSD employees. As is detailed in the attached proposed resolution, the project is also consistent with the City’s Housing Element.
The AHA funding request includes $1.856 million for FY 2022-23 and $1.713 for future years, for a combined request for $3.569 million. The proposed ROPS schedule funds $1.474 million of the requested amount in FY 2022-23, based on the estimated maximum amount due under the pass through agreement. If the Successor Agency approves the Development List and Funding Request, and the City of Alameda finds that the Development List is consistent with the City's Housing Element, it is AUSD's understanding that $1.474 million in Redevelopment Property Tax Trust Funds that the Successor Agency will likely receive, based on its FY 2022-2023 Recognized Obligation Payment Schedule, will be remitted to AHA for use on the Rosefield Village and 2615 Eagle Avenue projects, consistent with the terms of the MOU.
To ensure timely approval of the Development List and Funding Request prior to the submission of the FY 2022-23 ROPS to the County of Alameda Oversight Board and the State Department of Finance, we would appreciate if your Department would make the necessary arrangements to schedule a public hearing by the Successor Agency, which hearing could be conducted at a joint meeting with the Council on January 4, 2022, in order that the Successor Agency have the opportunity to review and approve the Development List of affordable housing projects and approve the Funding Request for the Rosefield Village Project.
Thank you very much for your attention to this matter.
Sincerely,
Shariq Khan, Assistant Superintendent of Business Services Alameda Unified School District
c: Sylvia Martinez, Director of Housing Development, Housing Authority of the City of Alameda Exhibit 1: Alameda Unified School District Fiscal Year 22-23 Development List and Funding Request EXHIBIT 1
Alameda Unified School District Fiscal Year 2022-2023 Development List and Funding Request Pursuant to Section 6 of the 1991 Pass-Through Agreement between Alameda Unified School District ("AUSD") and the Successor Agency to Community Improvement Commission of the City of Alameda, AUSD is submitting its list of prioritized housing projects and programs for Fiscal Year 2022-2023:
Housing Projects and Programs (Development List)
Rosefield Village - Redevelopment and renovation of a Housing Authority-owned property to construct/rehabilitate 92 rental units available to eligible households earning between 20-80% of Area Median Income.
2615 Eagle Avenue - Acquisition of AUSD-owned land and construction of a 23-30 unit housing development by the Housing Authority. The development will be made affordable to households earning no more than 80% of Area Median Income.
Funding Request
It is requested that $1,474,000 in Redevelopment Tax Trust Funds, corresponding to the estimated $1,474,000 District Housing Fund obligation for FY 2022-2023, be included by the Successor Agency to the Community Improvement Commission of the City of Alameda on its upcoming Fiscal Year 2022-2023 Recognized Obligation Payment Scheduled (ROPS) for purposes of funding the Rosefield Village Project. It is further requested that the Successor Agency transfer these funds to the Housing Authority of the City of Alameda to fund the Project consistent with the Memorandum of Understanding between the Housing Authority and the AUSD.