FY24
Affordable Housing Expenditure Plan &
Affordable Housing Program
Annual Report
Presented To:
Emeryville City Council
January 21, 2025
2024 Annual Report- Executive Summary | Page 1
Executive Summary
This annual report includes an update on the following:
1.Affordable Housing Expenditure Plan;
2.Measure C Housing Bond; and
3.Affordable Housing Set-Aside Program
Section 1 of the report provides an update on the activities planned in the City of Emeryville’s Affordable Housing Bond Administration and Expenditure Plan dated February 16, 2021.With the Plan, the Emeryville City Council adopted a set of preservation and production strategies for affordable housing and identified $64.5 million to support these activities. By the end of FY24, the City of Emeryville (“City”) had expended $15.6 million, or 24%, of these funds and made progress in the Preservation Initiative, under the BMR Acquisition Program and made progress in the Production Initiative, under the Rental Production Program. Specifically, the City purchased two Below-Market Rate condos for re-sale to qualified homebuyers in order to preserve their affordability and closed an affordable housing development loan with the Nellie Hannon Gateway project and disbursed more than $14M to that project during construction.
Section 2 of the report provides an update on the actions, expenditures and performance measures, specifically for the $50 Million Measure C Housing Bond.
Section 3 of the report provides an update on the Below Market Rate portfolio of rental and ownership housing units created in the City. The BMR portfolio currently consists of 957 BMR rental units and 232 BMR ownership units. No new BMR units were created or lost in 2024, however 89 of rental units were under construction and 6 of the ownership units were sold to new homeowners.
Avalon Public Market Apartments Estrella Vista Apartments Andante Condominiums Affordable Housing Expenditure Plan Annual Report 3
Measure C Bond Annual Report 16
Affordable Housing Set Aside Report 20
Attachment A: Funding Sources 27
Attachment B: Affordable Housing Table 28
Table of Contents
Huchiun Park
The Emery Apartments
2024 Annual Report - All Funds | Page 3
Section 1.
Affordable Housing Expenditure Plan Report
March 2021-June 2024
Introduction
This report provides an update on the
activities planned in the City of Emeryville’s
Affordable Housing Bond Administration and
Expenditure Plan dated February 16, 2021, for
the period May 1, 2023 through June 30, 2024.
Adopted on March 2, 2021 with Resolution 21-
13, this Plan governs the implementation of
Measure C Bond funds, as well as the City’s
other affordable housing financial resources
and will remain in effect until amended
pursuant to the City Council’s approval
resolution or by future actions of the City
Council.
At the time of the Plan’s adoption, the City
had $14.516M in affordable housing financial
resources, made up of $5.9M in the Low-and
Moderate-Income Housing Asset Fund, $5.2M
in the Affordable Housing Fund, $734,000 in
Affordable Housing Impact Fees, and $2.5M
in Alameda County Measure A1 funds, and
anticipated $50M from Measure C bond
funds, which are discussed in greater depth in
Section 2 of the Report. Since adoption, an
additional $575,000 in Prohousing Incentive
Pilot funds, has been added to the plan. More
detailed descriptions of these additional
funding sources appear in Attachment A.
Nellie Hannon Gateway
LPAS Architecture & Design
2024 Annual Report - All Funds | Page 4
Production Initiative
Rental Development. Allocation: $41,166,684
Fund new construction of rental units for very low-, low- and moderate-income households and special needs populations, on development sites with a City financial interest.
Preservation Initiatives
Acquisition of BMR Homebuyer Units. Allocation: $1,578,373 Purchase Below Market Rate (BMR) ownership units that are at risk of becoming market rate units.
Homebuyer Assistance. Allocation: $1,950,000
Assist low to moderate, first-time homebuyers in purchasing a home by providing eligible borrowers down payment and/or closing cost assistance in the form of a deferred loan.
Foreclosure Prevention. Allocation: $150,000
Assist income eligible homeowners to prevent displacement through foreclosure by providing eligible homeowners with assistance through a deferred loan.
Rental Preservation. Allocation: $4,000,000
Provide rental property owners with loans to make needed improvements to units occupied by income eligible tenants.
Special Needs Housing Incentive. Allocation: $4,050,000 Incentivize the creation of additional Below Market Rate (BMR) units for Special Needs Populations at existing Rental Developments.
Development Opportunities. Allocation: $8,319,804
Fund strategic acquisition or development of residential housing for very low to moderate income units.
Expenditure Plan Programs
All programs within the Expenditure Plan fall within either the Preservation Initiative or Production Initiative. Preservation programs are designed to preserve the existing supply, quality, and affordability of the housing stock, and to prevent displacement of existing tenants.
Production programs are designed to build new affordable housing units. Below is a brief description of each program.
**NEW** Accessibility Improvement. Allocation: $575,000 Provide loans to make accessibility or aging in place improvements to individual homes or to make accessibility improvements in common areas of multi-unit buildings.
2024 Annual Report - All Funds | Page 5
Table A: Housing Plan Funding Status
FUNDING CATEGORY
FUNDING
ALLOCATION
FUNDS
RESERVED
FUNDS COMMITTED
AMOUNT
EXPENDED
ORIGINAL BUDGET
BOND ISSUANCE FEES $801,932 $801,932 $745,175 $745,175
ADMINISTRATION $2,500,000 $2,500,000 $41,822 $41,822
BMR ACQUISITION $1,578,373 $701,493 $701,493 $701,493
HOMEBUYER ASSISTANCE $1,950,000 $- $- $-
FORECLOSURE ASSISTANCE $150,000 $- $- $-
RENTAL PRESERVATION $4,000,000 $- $- $-
SPECIAL NEEDS HOUSING $4,050,000 $- $- $-
RENTAL PRODUCTION $41,166,684 $40,926,684 $14,747,486 $14,135,111 DEVELOPMENT OPPORTUNITY $8,319,804 $- $- $-
ORIGINAL TOTAL $64,516,793 $44,930,109 $16,235,977 $15,635,602
NEW FUNDING/PROGRAMS
ADMIN $28,750 $28,750 $28,750 $-
ACCESSIBILITY IMPROVEMENT $546,250 $- $- $-
NEW TOTAL $65,091,793 $44,958,859 $16,235,977 $15,635,602 The City originally allocated $64,516,793 in funding to support the Affordable Housing Administration and Expenditure Plan. In January 2024, the City executed an agreement with the California Department of Housing and Community Development for $575,000 in Prohousing IncentivePilot funds, bringing the new total of funding allocation to $65,091,793. At the end of FY24, the City had committed $18,764,947 (29%) and expended $15,623,602 (24%). Table A lists the percentage of funds committed and expended by the end of FY24 per funding category. Funds are reported as reserved when assigned to a specific address, committed when a funding agreement has been put in place, and expended when funds have been paid out by the City of Emeryville.
Funding Allocation
2024 Annual Report - All Funds | Page 6
The Affordable Housing Administration and
Expenditure Plan outlines the expenditure of
the Measure C Bonds based on the
assumption that the City would issue taxexempt Bonds in two tranches (Spring 2022 and Winter 2025), with the requirement that
each tranche expend 85% of the proceeds in
three years and 100% of the proceeds in five
years. Subsequently, the City determined
that the housing programs planned would be
better supported through social/taxable
bonds which do not carry these timing
restrictions and that issuing all the bonds at
one time would be more effective. Therefore,
the City issued all the bonds in spring 2023
and has access to all Measure C proceeds to
fund programs. Based on these changes, and
the Prohousing Incentive Pilot funds
allocated in 2024, a revised expenditure
schedule for all funding sources per
program has been developed (see Figure 1).
Figure 1 - Expenditure Schedule by Program
Expenditure Schedule
**NEW**
Emeryville Amtrack Station
Terraces at Emery Station
2024 Annual Report - All Funds | Page 7
Funds
Committed
& Expended
Funds
Reserved
Funds
Committed
& Expended
Funds
Reserved
Figure 2: Affordable Housing Administration & Expenditure Investment Map The city is committed to ensuring that it invests in the production and preservation of affordable housing opportunities in all parts of the city. Funding through the Affordable Housing Administration and Expenditure Plan has been reserved, committed or expended so far in the Powell-Christie Core, Park Avenue, San Pablo Corridor and Triangle neighborhoods, as illustrated in Figure 2 below.
Investment Map
BOND CLOSING
City sells $50 Million in Measure C GO
Federally Taxable Social Housing Bonds
GROUNDBREAKING & LOAN CLOSING
Nellie Hannon Gateway, 3600 San Pablo Ave. 89
affordable apartments + nonprofit space
BMR UNIT ACQUIRED
1 BMR Unit acquired and resold to an income
eligible homebuyer
2021-2023 Housing Plan Highlights
PRO HOUSING FUNDS AWARDED
City awarded $575,000 in Prohousing Incentive
Pilot funds
UNDER CONSTRUCTION
Nellie Hannon Gateway, 3600 San Pablo Ave.
89 affordable apartments + nonprofit space
GUIDELINES APPROVED
Homebuyer Assistance Program will provide up
to $200,000 in down payment and closing cost
assistance
GUIDELINES APPROVED
Emeryville Accessible Living Initiative to provide
low-interest loans for accessibility upgrades
BMR UNITS ACQUIRED & SOLD
1 BMR Unit acquired and resold to income
eligible homebuyer.
2024 Housing Plan Highlights
ADDRESS
FUNDS
EXPENDED
FUNDING
SOURCE
DATE
PURCHASED
PURCHASE
PRICE
DATE SOLD
SALE
PRICE
1500 PARK
AVE, #322
$341,766
Affordable
Housing Fund
7/30/2021 $338,200 1/31/2022 $338,200
1500 PARK
AVE, #314
$359,727 Measure C 9/27/2023 $355,900 3/20/2024 $339,000 2024 Annual Report - Initiatives | Page 10
Program Status and Performance Measures
BMR Acquisition Program
The purpose of the BMR Acquisition Program is to retain affordable homes within the City’s BMR portfolio. To date, the City has purchased and sold two condos, once using Affordable Housing Program funds and once using Measure C bond proceeds. The Housing Bond Administration and Expenditure Plan allocated $1,578,373 and has expended 44%. Below, Table B identifies the transactions that have occurred since FY 2021 and Table C identifies the performance measures for the BMR Acquistion Program.
Table C: BMR Acquisition Performance Measures
Household Income of Assisted Buyers
Individual
Race/Ethnicity
Adults
Hispanic – Mexican 1
Other 1
Multiracial 1
Total Buyers 3
Household Income
Range
Actual
Households
Program
Goal
50% to 80% AMI 1 0
80% to 100% AMI 0 0
100% to 110% AMI 1 4
Total Households 2 4
* Note that the number of buyers by race/ethnicity is larger than the number of buyers by income range because race/ethnicity is reported for each individual owner whereas income is calculated for the household.
Table B: FY 2021-2024 BMR Acquisition Transactions
2024 Annual Report - Initiatives | Page 11
Homeownership Assistance Program
On May 7, 2024, the City Council adopted a resolution, adopting the First Home Emeryville Program Guidelines. First Home Emeryville is a homebuyer down payment assistance program that will provide up to $200,000 in homebuyer assistance to low- and moderate-income households (60-120% AMI) to purchase a home in Emeryville. The Housing Administration and Expenditure Plan allocated $1,950,000 to support this program, of which $1,820,000 will come from Measure C Housing Bond proceeds. The program is anticipated to launch in September 2024.
Foreclosure Prevention Program
Implementation of this program has not started yet. Anticipated Rental Preservation Program
Staff completed an initial draft of program guidelines for Rental Preservation in FY24 and anticipate bringing these guidelines to Council for approval and launching the program in FY25.
Special Needs Housing Incentives
Implementation of this program has not started yet. Anticipated Accessibility Improvement
During this time period staff designed and gained Council approval for an assistance program called Emeryville Affordable Living Initiative which will be implemented in FY2025. Funding for EALI was not originally included in the Housing Plan, as the funds were received after the Housing Plan was adopted but is now being reflected in the Housing Plan.
Rental Development Program
The Affordable Housing Plan identified 4 specific sites for the development of rental housing: 3600 San Pablo Ave., 4300 San Pablo Ave., Christie Sites, and Adeline Sites. Table D identifies the Rental Development Program closed loan transactions that have occurred since FY21 and Table E identifies the associated expenditure of funds on closed transactions since FY21. Table F identifies the loan status of the development sites that have not closed. A more detailed description of each project site and associated activities that have occurred follows.
PROJECT SITE
CLOSING
DATE
LOAN
AMOUNT
FUNDS
LEVERAGED
#BMR
UNITS
INCOME
TARGETING
LOAN
AMOUNT
PER UNIT
3600 SAN PABLO AVE
(NELLIE HANNON
GATEWAY)
4/21/23 $16,747,486 $75,881,483 89 20-60% AMI $188,174
Table D: Rental Development Closed Transactions
2024 Annual Report - Initiatives | Page 12
3600 San Pablo Ave. / Nellie Hannon Gateway
On April 18, 2023, the City Council adopted a resolution, authorizing the execution of the Amended and Restated Loan Agreement between the City of Emeryville and Evoy, L.P., an affiliate of Resources for Community Development, for the development of the Nellie Hannon Gateway project at 3600, 3610 and 3620 San Pablo Avenue. This agreement provides a total of $16,747,486, for the development of 90 residential units and 4,600 square feet of commercial space for the Emeryville Citizens Assistance Program (“ECAP”), a local non-profit organization.
All of the units, except the manager’s unit, will be affordable to extremely low- and low-income households (i.e. 20-60% of Area Median Income (“AMI”)) and 45 of the units are set-aside for formerly homeless individuals. The building permit was issued on May 9, 2023, a groundbreaking ceremony was held on June 29, and construction is anticipated to be complete in the summer of 2025.
PROJECT SITE
AFFORDABLE
HOUSING
FUND
AFFORDABLE
HOUSING
IMPACT FUND
LOW MOD
HOUSING
ASSET FUND
MEASURE
C
TOTAL
EXPENDED
3600 SAN PABLO AVE
(NELLIE HANNON
GATEWAY)
$4,309,491 $475,085 $5,920,760 $3,429,775 $14,135,111
Table E: Rental Development Expenditures
PROJECT SITE
FUNDING
ALLOCATION
LOAN STATUS
FUNDING
SOURCE(S)
PROJECT STATUS
4300 SAN PABLO AVE. $2,519,198 Funds Reserved
Alameda County
Measure A-1 Bond,
Emeryville set-aside
Developer seeking
additional funding
CHRISTIE SITES
(PERENNIAL
APARTMENTS)
$23,660,000 Funds Reserved Measure C
Developer seeking
entitlements and
additional funding
ADELINE SITES $240,000 Funds Reserved Measure C Project Canceled Table F: Rental Development Non-Closed Loan Project Status 2024 Annual Report - Initiatives | Page 13
KTGY Architecture + Planning
4300 San Pablo Ave.
The City of Emeryville selected EAH Housing as the developer for 4300 San Pablo. The project is currently in the pre-development stage and seeking additional financing. 4300 San Pablo will contribute to neighborhood diversification, sustainable and affordable housing, economic revitalization and opportunity, and pedestrian use and mobility.
This building will provide 68 intergenerational, deeply affordable (20 – 50% AMI) apartment homes for seniors and youth transitioning out of foster care. 4300 San Pablo will allow seniors to age in place while providing stability for transition-age, former foster youth. Services will be provided to the resident community by a partnership between EAH Housing and Unity Care, through a structured, supportive program that fosters mentorship and engagement to enhance the lives of both youth and seniors. The City Council took action to allocate $2,519,198 of Emeryville’s local set-aside of Alameda County Measure A-1 funds to this development; the resulting loan agreement will be between the building owner and Alameda County.
Figure 3: Nellie Hannon Gateway
Figure 4: 4300 San Pablo Avenue
LPAS Architecture & Design
Christie Sites/Perennial Apartments
On January 16, 2024, the City Council adopted a resolution, authorizing the execution of a Lease Disposition and Development Agreement between the City of Emeryville and EAH Housing, for the development of Perennial Apartments (aka Christie Sites) at 5890, 5900 and 6150 Christie Avenue.
This agreement provides a total of $23,660,000 in Measure C bond proceeds for the development of 362 residential units, over three phases. All of the units, except the four manager units, will be affordable to extremely low, and low-income households (i.e. 20-60% AMI). The City authorized the submission of a planning application on June 21, 2024, which once submitted to the Planning Division and confirmed to be complete, is required to be approved administratively within 180 days. EAH Housing will begin seeking financing for Phase 1 (Astrid Building) in late 2024, with the intention to start construction in late 2026. Phase 2 (Bluebell Building) will proceed with construction in late 2027 and Phase 3 (Clover Building) in late 2028.
Adeline Sites
During this time period, the city made this site available for development twice through Request for Proposals process: first, in August 2022 for affordable rental housing, and again in February 2024 for affordable homeownership. Neither process yielded a viable development project. At less than 2200 square feet, the development potential of the Adeline Sites is limited, which contributed to the difficulty in identifying a developer. On June 18, 2024, the City Council authorized the sale of these sites at market rate, and staff are working to secure a broker. Funds allocated to this project will be reprogrammed.
Development Opportunity
This activity had not yet begun at the end of FY 2024.
2024 Annual Report - Initiatives | Page 14
David Baker Architects.
Figure 5: Perennial Apartments, Bluebell Building
Housing Plan Overall Performance Measures
Expended Unexpended
AHF AHIF LMHAF Measure C A-1 Bond Prohousing
0%
20%
40%
60%
80%
100%
87%
13%
65%
35% 100%
9%
91% 100% 100%
Funds UnExpended
76%
Funds Expended
24%
Income Category
Actual
Households/Units
Original Program
Goal
New
Program Goal
% Accomplished
Very Low
(20% to 50% AMI)
45 282 282
Low
(50% to 80% AMI)
45 159 177
Moderate
(80% to 120% AMI)
1 158 158
16%
Special Needs Set-Aside (45 out of 149)
Income Targeting
Total Units
Remaining Units to Goal
526
Production 89
Preservation 2
Total Funds Expended Funds Expended Per Source
25%
1%
2024 Annual Report - Measure C | Page 16
Section 2.
Measure C Bond Annual Report
Introduction
Measure C supports the City’s Housing Element and General Plan policies by financing affordable housing development costs for extremely low, very low, and low-income households as well as for persons with special needs. On June 5, 2018, during a Special Election, more than 2/3rd of Emeryville voters approved Measure C. Measure C allows the City of Emeryville to issue $50,000,000 in bonds to provide affordable housing, representing about 77% of the funds identified in the City of Emeryville’s Affordable Housing Bond Administration and Expenditure Plan.
The object and purpose of issuing the Measure C bonds is to finance the costs of providing and/or enhancing the acquisition or improvement of real property in order to provide affordable housing for extremely low, very low, low and middle-income individuals and families, including vulnerable populations such as veterans, seniors, local artists, the disabled, current or former foster youth, victims of abuse, people experiencing homelessness and individuals suffering from mental health or substance abuse illnesses.
Projects to be financed through Measure C may include:
Acquisition or improvement of real property to produce new affordable housing projects; Rehabilitation of existing multi-family projects that are affordable to extremely low, very low, low and moderate-income families and individuals;
Acquisition of additional affordability commitments in new, privately developed mixed - income projects for veterans, seniors, the disabled, current or former foster youth, victims of abuse, people experiencing homelessness homeless and individuals suffering from mental health or substance abuse illnesses;
Help for low and middle-income households, including local artists, purchase homes and stay in the community with first time homeowner loans;
Displacement prevention for vulnerable populations in Emeryville, including extremely low, very low, low and moderate-income households, veterans, seniors and people with disabilities; and permanent supportive housing for people experiencing homelessness.
Voters Approve Measue C Bond
On February 6, 2018, the City Council directed
staff to place a $50,000,000 affordable housing
bond on the June 2018 ballot. On June 5, 2018,
during a Special Election, over 2/3rd of
Emeryville voters approved Measure C to issue
general obligation bonds to finance the
development of affordable housing projects.
Adoption of Expenditure Plan
On March 2, 2021, the City Council adopted an
Affordable Housing Bond Administration &
Expenditure Plan, which governs the
implementation of the $50 Million in Measure C
Bond funds, as well as $14.5 Million in other
Affordable Housing financial resources.
Measure C Bond Background
2024 Annual Report - Measure C | Page 17
City Issues Bonds
On May 11, 2023, the City of Emeryville sold
$50,000,000 in General Obligation Bond
Federally Taxable Social Bonds for Housing
Projects to Wells Fargo Bank, National
Association.
Emeryville City Hall
In 2021, the City anticipated issuing the bond in two parts, called tranches, with the first tranche in spring 2022 and the second in winter 2025. Both would have been tax-exempt, and under tax law the funds from each issuance would have needed to be 85% spent on allowable uses within 3 years and 100% within 5 years. Subsequently the City determined that the housing programs planned would be better supported through social/taxable bonds which do not carry these timing restrictions and are commonly used for municipal housing bonds, and that issuing all the bonds at one time would be more effective. Therefore, the City issued all the bonds in spring 2023 and has access to all Measure C proceeds for funding.
Table H identifies the Measure C Budget, funds reserved to specific addresses, funds expended in FY23 and FY24, and the available balance of funds.
Program
Funding
Allocation
Funds
Reserved
Funds
Expended FY23
Funds
Expended FY24
Total Funds
Expended
Funds Available
to Expend
BMR Acquisition $1,178,373 $359,727 $- $359,727 $359,727 $818,646 Homebuyer
Assistance
$1,820,000 $- $- $- $- $1,820,000
Foreclosure
Prevention
$150,000 $- $- $- $- $150,000
Rental
Preservation
$4,000,000 $- $- $- $- $4,000,000
Special Need
Housing Incentive
$4,050,000 $- $- $- $- $4,050,000
Rental
Production
$27,179,891 $26,939,891 $- $3,429,775 $3,429,775 $240,000 Development
Opportunities
$8,319,804 $- $- $- $- $8,319,804
Cost of Issuance $801,932 $801,932 $745,175 $- $745,175 $56,757 Administration $2,500,000 $2,500,000 $- $41,822 $41,822 $2,458,178 Total $50,000,000 $30,601,550 $745,175 $3,831,324 $4,576,500 $45,423,500 2024 Annual Report - Measure C | Page 18
Table H: Measure C Funding Allocation
The Measure C Housing Bonds were issued as Social Bonds by Wells Fargo Bank (Investor). Social Bonds require Investors to ensure that bond proceeds to be exclusively applied to finance eligible Social Projects that align with the following four Social Bond Principals.
Use of Proceeds: Bond proceeds shall only be used for eligible Social Projects, that have clear social benefit and aim to address or mitigate a specific social issue. Affordable Housing is an eligible Social Project.
Process for Project Evaluation and Selection: Social Projects shall have social objectives and identify what the intended benefit is to the target population. Management of Proceeds: Social Bond net proceeds shall be tracked in an appropriate manner.
Reporting: Information on the use of Bond proceeds shall be included in an annual report, which identifies a description of the projects, amount of funds allocated, and expected impact.
Table I was developed by the city to demonstrate compliance with the social impact reporting for the Measure C bond funded activities in FY24.
2024 Annual Report - Measure C | Page 19
Housing Bond Social Impact Reporting
Table I: Measure C Social Impact Portfolio Reporting
Social Bond Category
Project Name Initiative Program
Eligible
Category
Sub-Category
Sustainable Development
Goal Addressed
Nellie Hannon Gateway Production
Rental
Production
Real Estate
Affordable Quality
Housing
11.1 1500 Park Avenue, #314 Preservation
BMR
Acquisition
Real Estate
Affordable Quality
Housing
11.1 Target Population
Project Name Objective Income Targeting Special Needs Target Nellie Hannon Gateway Real Property Improvements 20-60% AMI Homeless Individuals 1500 Park Avenue, #314 Acquisition of Real Property 120% AMI Underserved Households Allocation Information
Project Name
Total City
Funding
Measure C Allocated
Amount
Measure C Share of
Funding
Financial Life of
Project
Nellie Hannon Gateway $16,135,111 $3,529,851 22% 99 years 1500 Park Avenue, #314 $358,727 $358,727 100% 45 years
Social Bond Indicators
Project Name
Indicator 1:
# of Housing Units Financed
Indicator 2:
# of Individuals Housed
Indicator 3:
Client Saving Premium
Nellie Hannon Gateway 89 178 (Estimate) $912 (Per Unit/Per Month) 1500 Park Avenue, #314 1 3 $281,000 (Per Housing Unit)
2024 Annual Report - Affordable Housing Program | Page 20 Section 3.
Affordable Housing Program Annual Report
In July 2014, the City Council passed Ordinance 14-009 which retitled and amended Article 4 of Chapter 5 of Title 9 of the City of Emeryville’s Planning Regulations as the Affordable Housing Program. The purpose of the Affordable Housing Program is to lessen the shortage of housing, which is affordable to moderate, median, low and very low-income households by ensuring developers include Below Market Rate (BMR) units in residential developments of a certain size and to establish a housing impact fee for the creation of affordable housing units.
Since the adoption of the Affordable Housing Program in 2014, the City has leased ten (10) residential rental projects creating 234 BMR units, has one residential rental project under construction that will create 89 BMR units, and has entitled two residential rental projects, which will create 71 BMR units.
No new residential ownership projects have been created since 2014.
Section 418 of Article 4 of Chapter 5 of Title 9 of the Emeryville Planning Regulations states the following:
“The City shall prepare, or cause to be prepared, an annual report to the City Council on the status of the affordable units constructed under the provisions of this article. The report shall include the number, size, type, tenure, and general location of the affordable units as well as the number of resales and rental vacancy rate. This report shall provide a basis for an evaluation of the overall effectiveness of this article.” This report fulfils the requirement for an Affordable Housing Program Annual Report and includes the above forementioned information for all residential developments built in the City of Emeryville with an affordable housing requirement for BMR Units.
The Emery
Introduction
2024 Annual Report - Affordable Housing Program | Page 21 The BMR Rental Portfolio is made up of rental projects that were subject to Affordable Housing SetAside Program when it received its entitlements, received a financial investment (i.e. Loan) from the City, participated in the Community Development Bonus Program, and/or or participated in the State Density Bonus Program when it received its entitlement. An Affordable Housing Agreement is typically recorded against each rental housing development restricting the income and rental rate of the BMR rental units for anywhere between 55 -99 years. For older projects that do not have an Affordable Housing Agreement, the income and rental rate restrictions are outlined in the loan agreement.
Figure 7 provides various data points on the BMR Rental Portfolio. Figure 8 illustrates the location of of each BMR Rental Property based on how it came into the BMR Rental Portfolio. Table J provides the BMR vacancy rate for all completed developments as reported in 2022 and 2023.
BMR Rental Projects
Figure 7 - BMR Rental Portfolio Stats
# Units Complete:
653 (83%)
# Units In Construction:
89 (9%)
# Units Entitled:
70 (7%)
# Family Units:
700 (73%)
# Special Needs Units: 257
(27%)
# Very Low Income:
603 (63%)
# Low Income:
197 (21%)
# Moderate Income:
158 (17%)
Studio: 167 (17%)
1 Bedroom: 378 (40%)
2 Bedroom: 309 (32%)
3 Bedroom: 102 (11%)
4 Bedroom: 7 (1%)
Live/Work: 3 (0.3%)
Unit Types
Development Status
Income Targeting
Project Type Units
Figure 8 - 2024 Emeryville BMR Rental Portfolio Map
2024 Annual Report - Affordable Housing Program | Page 22 2024 Annual Report - Affordable Housing Program | Page 23 Table J - BMR Vacancy Rate
Table J illustrates the BMR vacancy rate as reported in the annual rental compliance report for all leased properties for the 2022 and 2023 reporting periods. All BMR properties are required to maintain a waitlist of interested applicants and then utilize their waitlist to fill BMR vacancies.
Ambassador Family Housing, Avalon Senior Apartments, and Triangle Courts all accepted applications for interested households to join their waitlists through the Alameda County Housing Portal in 2023.
NA
NA
BMR Ownership Projects
The City has a portfolio of 18 ownership housing developments which originally created 239 BMR ownership units between 1993 and 2009. The BMR ownership units were primarily sold to moderate income households (61%) however 14% were sold to very low-income households and 25% were sold to low-income households. All BMR ownership units have a resale restriction agreement recorded against the units restricting the resale of the unit at an affordable sales price and to an income eligible household for anywhere from 25 to 45 years. No new affordable ownership units have been created in Emeryville since 2009, however the City previously lost seven (7) BMR ownership units (3%) through foreclosure or the expiration of the resale restriction agreement, bringing the BMR ownership portfolio to 232 units. In 2024, 6 BMR ownership units were resold to new homeowners.
The Figure 9 shows the location of this portfolio. Table K reports on the status of this portfolio as of June 30, 2024.
2024 Annual Report - Affordable Housing Program | Page 24 Figure 9 - BMR Ownership Map
BMR Ownership Projects
2024 Annual Report - Affordable Housing Program| Page 25 Table K - BMR Ownership Portfolio
Glasshaus Condominiums Elevation 22 Condominiums
2024 Annual Report - Affordable Housing Program| Page 26 Table L - BMR Monitoring Status
All BMR Ownership units, except for those at Artist Co-op are monitored annually to ensure the homeowner is continuing to reside in the unit as their principal place of residence. 89% of the BMR Homeownership Portfolio was in compliance for 23/24 fiscal year, 7 Homeowners did not respond to the request for information, and 16 homeowners submitted partial responses to the request for information (Table L).
This was the first-year homeowners were asked to submit a copy of their Homeowner Association (HOA) statement and it quickly became clear that many homeowners did not know how to access that information or communicate with their HOA. 13 of the 16 partial responders were missing their HOA statements, but may have also been missing other requested documentation.
Attachment A:
City Affordable Housing Funding Sources
2024 Annual Report - Attachment A | Page 27
Low- and Moderate-Income Housing Asset Fund (LMHAF): On February 1, 2012, the Emeryville Redevelopment Agency dissolved, and the City of Emeryville became the Housing Successor Agency responsible for overseeing the expenditure of all funds remaining in the Low- and Moderate-Income Housing Asset Fund LMHAF). Funds can be expended towards the development of housing affordable to and occupied by households earning 80 % or less of the Area Median Income (AMI), with at least 30% of these remaining funds expended for the development of rental housing affordable to and occupied by households earning 30% or less of AMI and no more than 20% of these remaining funds expended for the development of housing affordable to and occupied by households earning between 60% and 80% of AMI. No more than 50% of funds can be expended towards Senior Housing.
Affordable Housing Fund (AHF): City Council established the Affordable Housing Fund subsequent to the dissolution of the Emeryville Redevelopment Agency. The City Council’s policy has been to allocate 20% of residual receipts from the Redevelopment Property Tax Trust Fund (RPTTF) to support the City’s affordable housing programs. Residual RPTTF, colloquially termed “boomerang” funds, are the City’s portion of real property tax increment generated in redevelopment areas after the payment of enforceable obligations of the former Emeryville Redevelopment Agency.
Affordable Housing Impact Fee (AHIF): Within Article 4 of Chapter 5 of Title 9, the City established an affordable housing impact fee fund for the purpose of receiving and disbursing certain monies to address the housing needs of extremely low, very low, low, median and moderate-income households.
The fees collected under this article and all earnings from investment of the fees shall be expended exclusively to provide or assure continued provision of affordable housing in the City to meet the housing needs of the City’s workforce through acquisition, construction, development assistance, substantial rehabilitation, financing, rent or other subsidies, or other methods, and for costs of administering programs which serve those ends. Any non-residential project, for which a discretionary permit or building permit is required, must pay the housing impact fee, which is based on the square footage of the project. Residential rental projects for which the developer opts not to provide affordable housing units in compliance with Article 4 of Chapter 5 of Title 9 must also pay the affordable housing impact fee, based on the number of residential units.
Measure A1: In June 2016, the Alameda County Board of Supervisors placed a General Obligation Bond on the ballot to increase affordable housing countywide. In November 2016 73% of voters supported Measure A1. Measure A1 generates $ 580,000,000 for a range of affordable housing projects and programs in Alameda County. Of this amount, $225,000,000 is designated for Base City Allocations” based on city population.
Prohousing Incentive Pilot(Prohousing): In 2023, the City was awarded $575,000 in Prohousing funds from the California Department of Housing and Community Development to accelerate affordable housing production and preservation.
Attachment B:
FY2023/2024 Housing Affordability Table
2024 Annual Report - Attachment B | Page 28
The City Council adopted the Affordable Housing Table (Figure 10) for FY23/24 on July 4, 2023. The Housing Affordability Table outlines the maximum income limit, maximum rental rate, and the estimated maximum resale price for the city’s Below Market Rate portfolio.
Figure 10: Affordable Housing Table
2024 Annual Report Prepared By:
City of Emeryville
Community Development Department
Economic Development & Housing
Division
Clockwise: Watergate Condominium, Bayview Apartments, 3900 Adeline Apartments, Oliver Lofts