ADMINISTRATIVE REPORT
MEETING DATE: May 28, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Jennifer M. Byers
DATE: May 16, 2025
SUBJECT: Agreement with Niles RAD , LP ($2,324,446) for the Development of Affordable Housing (Ward 3)
HOME and HOME-ARP Loan Agreement with Niles RAD, LP ($2,324,446) for the Construction of Fifteen (15) New Affordable Housing Units at 7410 Niles Street (Ward 3)
RECOMMENDATION:
Staff recommends approval of the Agreement.
BACKGROUND:
Niles RAD, LP has site control of 7410 Niles Street, Bakersfield, California 93306 and proposes to construct a total of fifty-one (51) new affordable housing units targeted toward low-income senior residents, and has requested financial assistance from the CITY’s federal HOME and HOME-ARP funding toward the eligible costs of constructing fifteen (15) of the fifty-one (51) new affordable housing units.
In Fiscal Year 2023-24, the City received an award of $1,801,273 in HOME Investment Partnership Program (HOME) funding to assist in the development of new units and preservation of existing affordable rental housing for low-income and other qualifying households. Niles RAD, LP submitted a project application for the Niles Street Apartments (Project). On January 22, 2025, the Bakersfield City Council committed a total of $1,399,260 in HOME program funding to Niles RAD, LP for the construction of the Project under the HOME funding guidelines.
In Fiscal Year (FY) 2020-21, the City received an award of $5,458,039 in HOME Investment Partnerships American Rescue Plan (HOME-ARP) program funding to reduce homelessness and increase housing stability through the development of affordable rental housing. Niles RAD, LP submitted a project application for the Project and after review, City staff have recommended a HOME-ARP award of $925,186 to Niles RAD, LP for the construction of the Project under the HOME-ARP funding guidelines.
The City’s HOME and HOME-ARP awards are federally funded and have already been received by the City, and therefore have no fiscal impact on the General Fund. Niles RAD, LP shall obtain any additional funding for all other amounts required to complete the project.
Staff recommends that the City Council assists Niles RAD, LP with a construction loan in an amount not to exceed $2,324,446, to be used for eligible costs related to the development of fifteen (15) new affordable housing units within the fifty-one (51) unit Niles Street Apartments multifamily housing development.
FISCAL IMPACT:
No fiscal impact. This project is funded by Federal HOME and HOME-ARP Programs.
COUNCIL GOAL:
Community Character & Quality of Life
ATTACHMENT:
Agreement