RESOLUTION NO. ____ – 2023
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF EAST PALO ALTO
AUTHORIZING THE CITY MANAGER TO ACCEPT AN AWARD OF AFFORDABLE HOUSING SUSTAINABLE COMMUNITIES (“AHSC”) FUNDS FOR THE COLIBRI COMMONS PROJECT AT 965 WEEKS (“PROJECT’) AND EXECUTE ALL NECESSARY DOCUMENTS WHEREAS, the State of California, the Strategic Growth Council (''SGC''), and the State of California Department of Housing and Community Development (the ''Department'') issued a Notice of Funding Availability (''NOFA'') dated February 26, 2021 under the Affordable Housing and Sustainable Communities (''AHSC'') Program, established under Division 44, Part 1 of the Public Resources Code commencing with Section 75200; and
WHEREAS, the City of East Palo Alto (''City'') and MidPen Housing Corporation and EPACANDO (jointly, the ''Developer'') applied jointly for AHSC Program funds for the 965 Weeks Affordable Housing Project and submitted a completed Application Package to the Department for the AHSC Program; and
WHEREAS, the SGC is authorized to approve funding allocations for the AHSC Program, subject to the terms and conditions of the NOFA, Program Guidelines, Application Package, and Standard Agreement, and the Department is authorized to administer the approved funding allocations of the AHSC Program; and
WHEREAS, on May 18, 2021, the City Council approved Resolution 66- 2021, a resolution that authorized the City Manager to submit an AHSC Program Application, Negotiate and Execute a Cooperative Agreement, execute a Standard Agreement with the State of California, and execute a Cooperative and Implement Agreement with the Developer, SamTrans, and the JPB. This resolution listed the developer to be MidPeninsula The Farm, Inc./EPACANDO; and WHEREAS the City and Developer were jointly awarded an AHSC Program loan in an amount not to exceed $11,700,000 (“AHSC Loan”) and an AHSC Program grant in an amount not to exceed $8,087,125 (“AHSC Grant”) for an aggregate amount not to exceed $19,787,125 under the abovedescribed NOFA; and WHEREAS, on May 25, 2023, MidPen Housing Corporation was added as a non-member manager of MP CANDO Weeks Street, LLC. MidPen Housing Corporation replaced Mid-Peninsula The Farm, Inc. as the Co-Developer and Sponsor of Colibri Commons (formerly known as 965 Weeks Street) for the purposes of the AHSC award, and shall be understood as such in all previous and future documents; and
WHEREAS, on June 8, 2023, the Department of Housing and Community Development Program sent an updated award letter and requested an updated resolution from the City of East Palo Alto reflecting the correct Applicant’s name. Per the updated award letter, Sponsor 1 is MidPen Housing Corporation.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY:
1. Finds the above recitals to be true and accurate, and incorporates them by this reference into this action; and
2. Amends Resolution 66-2021, a resolution that authorized the City Manager to submit an AHSC Program Application, negotiate and execute a Cooperative Agreement, execute a Standard Agreement with the State of California, and execute a Cooperative and Implement Agreement with the Developer, SamTrans, and the JPB to replace mentions of “Mid-Peninsula The Farm, Inc.” with “MidPen Housing Corporation”; and
3. Accepts an award of AHSC funds from the State of California in the amount of $19,787,125; and
4. Authorizes and directs the City Manager to enter into, execute, and deliver a State of California Standard Agreement (''Standard Agreement'') in the amount not to exceed $11,700,000 and any and all other documents required or deemed necessary or appropriate to carry into effect the full intent and purpose of the above resolution, in order to evidence the AHSC Loan, the City's obligations related thereto, and the Department's security therefore; including, but not limited to, a promissory note, a deed of trust and security agreement, a regulatory agreement, a development agreement and certain other documents required by the Department as security for, evidence of or pertaining to the AHSC Loan, and all amendments thereto (collectively, the "AHSC Loan Documents"); and
5. Authorizes and directs the City Manager to enter into, execute, and deliver a State of California Standard Agreement in the amount not to exceed $8,087,125 and any and all other documents required or deemed necessary or appropriate to carry into effect the full intent and purpose of the above resolution, in order to evidence the AHSC Grant, the City's obligations related thereto, and the Department's security therefore; including, but not limited to, a disbursement agreement, a covenant and certain other documents required by the Department as security for, evidence of or pertaining to the AHSC Grant, and all amendments thereto (collectively, the "AHSC Grant Documents"); and
BE IT FURTHER RESOLVED THAT the City shall be subject to the terms and conditions as specified in the Standard Agreement(s). Funds are to be used for allowable capital asset project expenditures to be identified in Exhibit A of the Standard Agreement(s). The application in full is incorporated as part of the Standard Agreements(s). Any and all activities funded, information provided, and timelines represented in the application are enforceable through the Standard Agreement(s). The City hereby agrees to use the funds for eligible capital asset(s) in the manner presented in the application as approved by the Department and in accordance with the NOFA, Program Guidelines and application package.
BE IT FURTHER RESOLVED THAT the City Manager and City Attorney are hereby authorized to execute the AHSC Loan Documents and the AHSC Grant Documents, and any amendment or modifications thereto, on behalf of the City.
PASSED AND ADOPTED this 18th day of July 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
SIGNED:
Lisa Gauthier, Mayor
ATTEST: APPROVED AS TO FORM:
James Colin, City Clerk John D. Lê, City Attorney