Resolution 2024-XX Page 1 of 2
RESOLUTION NO. 2024-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FREMONT AUTHORIZING AN AMENDMENT TO THE EXISTING
LOAN DOCUMENTS TO ADD $1,350,000 IN AFFORDABLE
HOUSING FUNDS TO ALLIED 4038 IRVINGTON, L.P., FOR THE
DOUG FORD COMMUNITY APARTMENTS AND MAKING
FINDINGS OF CEQA EXEMPTION
WHEREAS, Abode Housing Development (Abode), formerly known as Allied Housing, is a Fremont-based affordable housing developer and the primary provider in Fremont of supportive housing aimed at the homeless or those at risk of homelessness; and WHEREAS, in 2018 and 2019, the City Council appropriated a total of $9 million from the Affordable Housing Development Fund for Abode to support the acquisition and construction of Doug Ford Community Apartments; and
WHEREAS, the 90-unit affordable housing development located at 4038 Irvington Avenue provides age-restricted units for seniors, veterans and individuals that have experienced homelessness; and
WHEREAS, project completion was significantly delayed primarily due to PG&E supply chain and staffing shortages, and as a direct result of the delay, the project was confronted by a budget shortfall due to compounding and escalating financing, labor and carrying costs; and WHEREAS, Abode was able to reduce the project’s budget gap from $1.7 million to $1.35 million by obtaining an early payment from its equity investor, which helped reduce the financing cost because a portion of the construction loan was paid off when the project received a temporary certificate of occupancy; and
WHEREAS, the $1.35 million requested from the City would allow Abode to repay itself for staffing and overhead costs for which they expected to receive developer fee upon closing out their construction loan but was instead expended for increased costs; and WHEREAS, the additional $1,350,000 would be provided in the form of a 55-year deferred payment loan at a rate of 0% interest and would bring the City’s total contribution to $10,350,000 or $115,000 per unit which is within the per-unit subsidy range of other affordable housing projects funded recently by the City; and
WHEREAS, Doug Ford Community Apartments achieved 100% occupancy in 2023 and is a place that formerly homeless and very-low income senior households now call home; and WHEREAS, Abode is in the process of closing out the construction loan and converting it to lower-cost permanent financing by mid-March 2024, and the City’s additional financing would be provided at the time of permanent loan closing.
Resolution 2024-XX Page 2 of 2
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF FREMONT HEREBY:
1. Authorizes the City Manager or her designee to amend the existing loan documents to add an additional $1,350,000 in funding to the project and take such other actions as required to provide a loan in the total amount of $10,350,000 to Allied 4038 Irvington, L.P.
2. Appropriates $1,350,000 from Fund 196 (Affordable Housing Development Fund) for the Doug Ford Community Apartments project.
3. Finds this action to be exempt from the California Environmental Quality Act (CEQA) pursuant to, without limitation, Sections 15378(b)(2), (4) and/or (5) and/or 15061(b)(3) in that it is an administrative or fiscal activity of the City which has no potential, directly or indirectly to cause a significant effect on the environment.
ADOPTED , 2024, by the City Council of the City of Fremont by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney