Resolution 2022-XX Page 1 of 3
RESOLUTION NO. 2022-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FREMONT APPROVING THE CONDITIONAL COMMITMENT
AND EXECUTION OF AN AGREEMENT FOR $540,000 OF
FEDERAL HOME FUNDS FOR BELL STREET GARDENS
AFFORDABLE APARTMENTS
WHEREAS, Resources for Community Development (“RCD”) is the developer of the Bell Street Gardens affordable housing project, converting the Islander Motel building and constructing an adjacent new building to provide a total of 128 permanent affordable apartments; and
WHEREAS, the City has provided a total of $13,295,000 in funding for the project from a combination of sources and the project also secured funding from Alameda County Measure A-1 Bond funds, the State’s Multifamily Housing Program, the State’s Housing Accelerator Program, and bank loans; and
WHEREAS, the project’s financing package appeared to be complete until recently when, due to high inflation, interest rate increases and impacts such as higher costs for insurance and other soft costs, RCD identified a funding gap of approximately $8.2 Million; and
WHEREAS, in addition to $1 Million of Fremont’s allocation of HOME funds, RCD has secured $2.7 Million in additional County funding commitments and deferred a portion of their developer fee, but there is a remaining gap of about $4 Million; and
WHEREAS, RCD has applied for additional funding from the State’s Accelerator Program, but has not yet learned if their application was successful; and
WHEREAS, Alameda County housing staff recently identified that Fremont has $540,000 in federal HOME funds that are unallocated and could be used for the Bell Street Gardens project, and a conditional award of the funds would help close the remaining funding gap if RCD’s application for State supplemental funding is unsuccessful; and
WHEREAS, the appropriation of $540,000 in HOME funds would increase the total City appropriation for the project to $13,835,000, or about $108,000 per unit, comparable to that provided by the City to other affordable housing projects in the past; and
WHEREAS, 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; and
WHEREAS, 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 the action is exempt pursuant to
Resolution 2022-XX Page 2 of 3
(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); and
WHEREAS, the project is also has complied with environmental procedures pursuant to National Environmental Policy Act (“NEPA”), as amended, and implementing regulations set forth in 24 CFR Part 58 and consistent with NEPA regulations, the initial Environmental Review process and Authority to Use Grant Funds for federal HOME funds was completed on July 25, 2022.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FREMONT, AS FOLLOWS:
1. The above Recitals are true and correct and have served, together with the related Staff Report, incorporated herein by this reference, as the basis for the findings and approvals set forth herein; and
2. The City Council approves the conditional commitment of $540,000 of federal HOME funds and authorizes the City Manager or designee to make the determination that the funding is needed to close a funding gap for the Bell Street Gardens Affordable Apartments; and
3. The City Council authorizes the City Manager or designee to execute loan documents (including without limitation, a loan agreement, a Regulatory Agreement, a promissory note, and a Deed of Trust), as well as all necessary HOME-related implementing documents with Resources for Community Development and Alameda County; and
4. The City Council authorizes the appropriation of $540,000 in HOME funds (Fund 103) to the Bell Street Gardens project.
ADOPTED , 2022, by the City Council of the City of Fremont by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
Resolution 2022-XX Page 3 of 3
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney