Fremont City Council Meeting: 05/17/22 07:00 PM
3300 Capitol Avenue Div/Dept: Human Services Department Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
STAFF REPORT (ID # 4605) DOC ID: 4605
Updated: 5/12/2022 8:09 AM by Alberto Quintanilla Page 1 BELL STREET GARDENS AFFORDABLE APARTMENTS – Adopt Resolution to Authorize the Execution of a Loan Agreement with Resources for Community Development to Include $1 Million in FY 2020/21 Federal HOME Funds for the Development of the Bell Street Gardens Affordable Apartments; and Appropriate $1 Million in Federal HOME Funds and Making Findings of CEQA Exemption Contact Persons:
Name: Robert Lopez Lucia Hughes
Title: CDBG Administrator Housing Manager
Div/Dept: Human Services Department Community Development Phone: 510-574-2043 510-494-4506
E-Mail: [email protected] [email protected]
Executive Summary: Staff recommends the City Council authorize the City Manager to execute a loan agreement with Resources for Community Development to include $1,000,000 in FY 2020/21 federal HOME funds for development of the Bell Street Gardens affordable apartments; and appropriate $1,000,000 in federal HOME funds to the Bell Street Gardens Affordable Apartments project.
BACKGROUND: In 2017 and 2018, the City Council approved a total of $12,295,000 in funding for Resource for Community Development (RCD), a Bay Area-based non-profit affordable housing developer to develop Bell Street Gardens Affordable Apartments. The project will be located at 4101 Mowry Avenue, the former site of the Islander Motel. The City funding includes $10,470,000 in Affordable Housing funds and $1,825,000 in CDBG funds. With the City’s funding support, the project was able to leverage a total of $18,599,625 in Alameda County A1 bond funding.
RCD acquired site control through a purchase option agreement in 2018. While working on securing the balance of the needed financing, RCD partnered with the City to operate the property as a non-congregate transitional shelter for homeless individuals, families and long-term motel residents. This partnership allowed unhoused residents to safely shelter-in-place during the peak of the COVID-19 pandemic.
RCD recently secured all necessary financing for the project and anticipates starting construction in August 2022. RCD will convert the Islander Motel building and construct a new apartment building on two vacant adjacent parcels to provide a total of 128 units of permanent affordable housing on approximately two acres of land. The housing will be accessible to households earning less than 50% of area median income (AMI) with 29% of the units at no more than 20% of AMI, including special needs housing for individuals with disabilities and formerly homeless households.
DISCUSSION/ANALYSIS: While RCD has secured all necessary financing for the project, City staff has identified an additional $1 million in federal HOME funds available to be used for affordable housing construction projects. The recommended action would allow for the timely expenditure of the available HOME funds as required by HOME timeliness rules. Utilizing a portion of the City's allocation of federal HOME funds for the Staff Report (ID # 4605) Meeting of May 17, 2022
Updated: 5/12/2022 8:09 AM by Alberto Quintanilla Page 2 project would also save $1,000,000 in the County’s A1 bond funds, which can be applied toward another Fremont affordable housing project.
FISCAL IMPACT: The proposed award of HOME funds requires a new appropriation in the amount of $1,000,000. This appropriation will be covered through the City’s share of the County’s federal HOME line of credit.
ENVIRONMENTAL REVIEW:
CEQA: On November 20, 2018, the City Council adopted a Mitigated Negative Declaration for a General Plan Amendment, Rezoning and Discretionary Design Review Permit for the development of this project, located at 4101 Mowry Avenue and comprising the Bell Street Gardens Affordable Apartment project; no further CEQA review is required because none of the circumstances specified in CEQA Guidelines Section 15162 necessitating preparation of subsequent environmental review are present or have occurred; and, as a separate and independent basis, the action is exempt pursuant to, without limitation (1) CEQA Guidelines Section 15378 (fiscal activities that do not involve commitment to a specific project that will result in any significant physical impact on the environment); and/or (2) Section 15061(b)(2) (the funding decision has no possibility of significant effect on the environment).
NEPA: An Environmental Assessment has been prepared and circulated for the proposed Bell Street Gardens project as required by the National Environmental Policy Act (NEPA). The public comment period for the Environmental Assessment ended on May 12, 2022. No funds will be released until the NEPA Environmental Assessment is approved by HUD.
ATTACHMENTS: See Attached Resolution
LINKS: None.
ATTACHMENTS:
• Draft Resolution--Bell Street Gardens HOME Loan
RECOMMENDATION:
1. Adopt a resolution approving a loan of $1,000,000 in FY 2020/21 HOME funds to Resources for Community Development for the development of the Bell Street Gardens Affordable Apartments and authorizing the City Manager or designee to execute all necessary HOME-related implementing documents with Resources for Community Development and Alameda County.
2. Appropriate $1,000,000 in HOME funds (Fund 103) to the Bell Street Gardens Project.