Fremont City Council Meeting: 09/20/22 07:00 PM
3300 Capitol Avenue Div/Dept: Housing
Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
STAFF REPORT (ID # 4683) DOC ID: 4683
Updated: 9/15/2022 2:42 PM by Susan Gauthier Page 1
INDEMNITY AGREEMENTS - Adopt a Resolution Ratifying Indemnity Agreements Between the City and the County of Alameda and Authorizing the City Manager to Execute Indemnity Agreements on A1 Bond Funded Affordable Housing Projects Contact Persons:
Name: Lucia Hughes Dan Schoenholz
Title: Housing Manager Community Development Director
Div/Dept: Housing Community Development
Phone: 510-494-4506 510-494-4438
E-Mail: [email protected] [email protected]
Executive Summary: The purpose of this staff report is to request City Council ratification of two indemnity agreements the City executed with the County of Alameda for the purpose of applying a City and a South County live/ work preference on two City-funded affordable housing projects.
BACKGROUND: The City of Fremont (“City”) has historically required affordable housing developers receiving City funds to give preference to those either living or working in Fremont when selecting tenants, consistent with State and Federal fair housing laws (“live/work preference.”) This preference has met the City Council’s longstanding interest in ensuring that local affordable housing funds benefit local residents and workers to the maximum extent possible.
The City Council previously approved funding for the development of Doug Ford Senior Apartments located at 4038 Irvington Avenue, Fremont and the Granite Ridge Apartments located at 3135 Medina Commons, Fremont. These affordable housing projects also received funding from Alameda County Measure A1 funds.
Alameda County Measure A1 created two significant funding sources for multi-family affordable housing projects: 1) a formula-based allocation to every city in the county; and 2) a regional pool of funds that provided dedicated allocations to be used within each sub- region of the County, including the South County (Fremont, Newark and Union City). Doug Ford Senior Apartments received A1 funds from the South County regional allocation, while Granite Ridge Apartments received A1 Funds from both the formula-based city allocation and the South County regional allocation.
The County’s Implementation Policies for Measure A1 Funds provide that if a city wishes to use a live/work preference policy for a project financed using the Measure A1 formula -based city allocation, the city must complete a study that demonstrates the occurrence of residential displacement within the city and that a city live/work preference is needed to respond to or prevent displacement. If a city wishes to use a live/ work preference policy for projects financed using the Measure A1 regional allocation, the city must complete a study that demonstrates the occurrence of residential displacement within that region and that a live/work preference is needed to respond to or prevent displacement. The city must also enter into an agreement obligating the city to defend and indemnify the County against claims or litigation that may arise in connection with such preference.
Staff Report (ID # 4683) Meeting of September 20, 2022 Updated: 9/15/2022 2:42 PM by Susan Gauthier Page 2
If a city is able to meet the criteria specified above, projects within that city financed by formula-based city allocation will be able to apply a city live/ work preference; projects within that city financed by regional allocation will be able to apply a regional preference; and projects within that city financed by both formula-based city allocation and regional allocation will be able to apply both a city preference and a regional preference on a pro rata basis.
DISCUSSION/ANALYSIS: To satisfy the County requirement, the City commissioned the preparation of the City of Fremont Residential Displacement Study Report and the Tri-City Subregion Residential Displacement Study Report (attached). The displacement reports demonstrated that (i) the City of Fremont region has experienced and is at risk for experiencing continued significant displacement of lower-income households (ii) the Tri-City region (Fremont, Union City and Newark) has experienced and is at risk for experiencing continued significant displacement of lower-income households, (iii) a City of Fremont live/ work preference and a Tri-City regional live/work preference is necessary to prevent additional displacement of lower-income households, (iv) a Fremont preference and a Tri- City regional preference will not result in limits to access to housing by any individual protected class, and (v) the lower-income population that will be eligible for residency in affordable housing developments is more racially and ethnically diverse than the general population in the area. The reports were approved by the County on February 28, 2022 and April 11, 2022 respectively.
The indemnity agreement is intended to satisfy the County requirement for indemnification of the County by the City against claims or litigation arising in connection with the City preference and the Tri-City Regional Preference.
Based on staff’s understanding of the City Council’s desire to apply local and regional live/work preference on City-funded affordable housing projects, staff processed the execution of the indemnity agreement for Doug Ford Senior Apartments on June 15, 2022 and Granite Ridge Apartments on August 5, 2022 consistent with FMC Section
3.20.070(b)(18)(B) which authorizes the City Manager to sign indemnity agreements under $100,000 in value. Staff nonetheless believes it is prudent to obtain the City Council’s formal ratification. On that basis, staff recommends the City Council adopt the draft resolution.
In addition, staff anticipates returning to Council to seek clarifying authorization for the City Manager to execute similar indemnity agreements with the County of Alameda for covered affordable projects in the development pipeline.
FISCAL IMPACT: None
ENVIRONMENTAL REVIEW: This action is exempt from and not subject to the requirements of the California Environmental Quality Act (CEQA) pursuant to, without limitation, CEQA Guidelines Section 15378(b)(1), (4) and/or (5), as an administrative or fiscal activity that does not have the potential, directly or indirectly, to result in a significant effect on the environment, and/or 15061(b)(3), in that it can be seen with certainty that there is no possibility that the action will result in a significant effect on the physical environment. Each of the foregoing provides a separate and independent basis for CEQA exemption as it is not defined as a “project.”
Staff Report (ID # 4683) Meeting of September 20, 2022 Updated: 9/15/2022 2:42 PM by Susan Gauthier Page 3
ATTACHMENTS:
• Fremont Residential Displacement Study Final
• Tri-City Subregion Displacement Study_Final
• Draft Resolution 2022 Ratify Indemnification
RECOMMENDATION: Adopt a resolution ratifying the execution of the indemnity agreement between 1) the City and the County of Alameda for Doug Ford Senior Apartments and 2) Granite Ridge Apartments; authorizing the City Manager to execute similar indemnity agreements between the City and the County of Alameda for covered affordable housing projects in the development pipeline, and making findings of CEQA exemption.