Memorandum
Date: February 1, 2024
To: File
From: Mayank Patel, Associate Planner
RE: Residential Condominium Conversion Cap & Unit Allocation Tracking
Pursuant to Fremont Municipal Code (FMC) §18.190.060, Condominium Conversion – Residential Projects, this memo documents the status of used and unused residential condominium conversion unit allocations. This information is also made available to the public on the City’s website and at the Development Services Center.
Background
The Residential Condominium Conversion Ordinance (“Ordinance”) provides a standard 100- unit conversion allocation, or cap, per calendar year (“CY”). The intent of the standard is to ensure the availability of rental apartment stock by balancing rental and ownership housing within the city. Pursuant FMC 18.190.060(g), the Planning Commission is authorized to grant limited discretionary increases above the 100-unit allocation for any particular CY, if certain specified conditions are met. Discretionary increases include:
1) Potential roll-overs of any unused unit allocations from an immediate prior CY if the apartment vacancy rate is greater than five percent; or
2) Borrowing up to 20 units in allocations from future years.
To implement this measure, the Planning Division is charged with tracking such allocations and reporting to the public. Residential condominium conversion applications are only accepted for processing from March 1 to March 15 of each CY. Table 1 provides a summary of the number of applications received since 2018. For more detail, please refer to Attachment A.
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Attachment: Informational Item 1_Memo_Condominium Conversion Tracking (5099 : 2023 Annual Progress Report on the Implementation of the
Table 1. Condominium Conversion Applications by Calendar Year Calendar Year Number of Applications
2018 0
2019 0
2020 0
2021 0
2022 0
2023 0
For CY 2024, the available allocation is 100 units. The unused allocation from CY 2023 of 100 units cannot be carried over and used in CY 2024 because the vacancy rate in February 2024 was
4.9-percent, below the required five percent.
Attachment(s):
A) Annual Conversion Cap and Unit Allocation Tracking
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Attachment: Informational Item 1_Memo_Condominium Conversion Tracking (5099 : 2023 Annual Progress Report on the Implementation of the
ATTACHMENT A
Residential Condominium Annual Conversion Cap and Unit Allocation Tracking (Updated February 2024)
Calendar
Year
Allowance
(# of apartment units
available for
conversion to
condominiums)
No. of
Applications
Submitted
(Residential condominium
conversion applications)
No. of Units
Allocated or
Approved
(100 units max, unless unused
allocation is carried over from a
previous calendar year or a
discretionary increase is permitted)
Unused
Allocation
May Unused
Allocation be
Carried
Over?
(Apartment
Vacancy Rate>=5%)
# of Units
Actually
Converted
# of
Produced
Units
(New apartment
units, finaled)
2018 100 0 0 100 No 0 41
2019 100 0 0 100 No 0 1702
2020 100 0 0 100 Yes 0 1023
2021 200 0 0 100 Yes 0 3504
2022 200 0 0 100 Yes 0 8685
2023 200 0 0 100 No 0 0
2024 100* TBD TBD TBD TBD TBD TBD
* Per FMC §18.190.060(g)(1), an unused allocation from a prior year may only be carried over and used during the next calendar year if, at that time, the apartment vacancy rate for t he city is greater than five percent.
If an allocation is not used in the next subsequent calendar year, it shall expire .
1 Lotus Common (4 units).
2 Mission Court Senior Apartments (90 units); MidPen Stevenson Place Apartments (80 units). 3 Fairfield Residential (102 units)
4 City Center Apartments (60 units); Innovia Wrap Around Apartments (290 units) 5 Fairfield Residential (422 units); Palmia at Mission Falls (171 units); Walnut Liberty Mixed Use Apartments (275 units).
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Attachment: Informational Item 1_Memo_Condominium Conversion Tracking (5099 : 2023 Annual
Minutes Planning Commission – February 22, 2024 PAGE 1
DRAFT MINUTES (EXCERPT)
FREMONT PLANNING COMMISSION
REGULAR MEETING OF FEBRUARY 22, 2024
Timestamps from the video webcast are listed below each Public Hearing Item Number and are in hours format, as follows: (hours:minutes:seconds). Video webcasts of Planning Commission meetings can be found at: https://fremontca.viebit.com/#
PUBLIC HEARING ITEMS
Item 4. 2023 Annual Progress Report – Citywide – To consider an annual report on the (02:19:13) status of implementation of the General Plan and the 2023 – 2031 Housing Element; and to consider exemptions from the requirements of the California Environmental Quality Act (CEQA), each on a separate and independent basis, pursuant to CEQA Guidelines §15061 (Review for Exemption), §15183 (Projects Consistent with a Community Plan, General Plan, or Zoning), and §15378 (Project).
Planning Manager Joel Pullen introduced the item.
Associate Planner Mayank Patel gave a comprehensive presentation and responded to questions from the Commission with assistance from Planning Manager Joel Pullen regarding Acc essory Dwelling Units (ADU), affordable housing units , and Senate Bill (SB) 9 applications.
Chairperson Zhang opened the public hearing on this item.
Kelly Abreu commented on the reduced population of Fremont over the last couple of years and the lack of density in the residential areas of Niles and Mission San Jose.
Chairperson Zhang closed the public hearing on this item.
IT WAS MOVED ( RAMAMURTHI/STECKLER) AND CARRIED BY THE FOLLOWING VOTE (6 -0-0-1-0) THE PLANNING COMMISSION – HELD PUBLIC HEARING;
AND
RECOMMENDED THAT THE CITY COUNCIL:
FIND THE ANNUAL PROGRESS REPORT (APR) IS EXEMPT FROM THE
REQUIREMENTS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA), EACH ON A SEPARATE AND INDEPENDENT BASIS, PURSUANT TO CEQA GUIDELINES §15061 (REVIEW FOR EXEMPTION), §15183 (PROJECTS
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Attachment: Informational Item 2_Draft Planning Commission Minutes (5099 : 2023 Annual Progress Report on the Implementation of the
Minutes Planning Commission – February 22, 2024 PAGE 2
CONSISTENT WITH A COMMUNITY PLAN, GENERAL PLAN, OR ZONING), AND §15378 (PROJECT);
AND
ACCEPT EXHIBIT “A” AND EXHIBIT “B,” WHICH DEPICT THE STATUS OF
THE GENERAL PLAN AND HOUSING ELEMENT, AND DIRECT STAFF TO SUBMIT THE APR TO THE GOVERNOR’S OFFICE OF PLANNING AND
RESEARCH (OPR) AND STATE DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT (HCD).
The motion carried by the following vote:
AYES: 6 – Basrai, Liu, Ramamurthi, Steckler, Yee, Zhang NOES: 0
ABSTAIN: 0
ABSENT: 1 – Rao
RECUSE: 0
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Attachment: Informational Item 2_Draft Planning Commission Minutes (5099 : 2023 Annual Progress Report on the Implementation of the 1 183\03\3468562.1
City of Fremont Housing Successor Low and Moderate Income Housing Asset Fund Annual Report for Fiscal Year 2022/2023 per HSC §34176.1(f)
This Housing Successor Annual Report (Report) regarding the Low and Moderate Income Housing Asset Fund (LMIHAF) has been prepared pursuant to California Health and Safety Code Section 34176.1(f) and is dated as of December 31, 2023. This Report sets forth certain details of the City of Fremont, Community Development Department, Housing Division (Housing Successor) activities during Fiscal Year 2022/2023. The purpose of this Report is to provide the governing body of the Housing Successor an annual report on the housing assets and activities of the Housing Successor under Part 1.85, Division 24 of the California Health and Safety Code, in particular sections 34176 and 34176.1 (Dissolution Law).
The following Report is based upon information prepared by Housing Successor s taff and information contained within the independent financial aud it of the Low and Moderate Income Housing Asset Fund Comprehensive Annual Financial Report for Fiscal Year 2022/2023 as prepared by Macias Gini O’Connell, LLP (Audit), which Audit is separate from this annual summary Report; further, this Report conforms with and is organized into sections I through XI, inclusive, pursuant to Section 34176.1(f) of the Dissolution Law:
I. Amount Deposited into LMIHAF: This section provides the total amount of funds deposited into the LMIHAF during the Fiscal Year. Any amounts deposited for items listed on the Recognized Obligation Payment Schedule (ROPS) must be distinguished from the other amounts deposited.
II. Ending Balance of LMIHAF: This section provides a statement of the balance in the LMIHAF as of the close of the Fiscal Year. Any amounts deposited for items listed on the ROPS must be distinguished from the other amounts deposited.
III. Description of Expenditures from LMIHAF: This section provides a description of the expenditures made from the LMIHAF during the Fiscal Year. The expenditures are to be categorized.
IV. Statutory Value of Assets Owned by Housing Successor: This section provides the statutory value of real property owned by the Housing Successor, the value of loans and grants receivables, and the sum of these two amounts.
V. Description of Transfers: This section describes transfers, if any, to another hous ing successor agency made in previous Fiscal Year(s), including whether the funds are unencumbered and the status of projects, if any, for which the transferred LMIHAF will be used. The sole purpose of the transfers must be for the development of transit priority projects, permanent supportive housing, housing for agricultural employees or special needs housing.
VI. Project Descriptions: This section describes any project for which the Housing Successor receives or holds property tax revenue pursuant to the ROPS and the status of that project.
VII. Status of Compliance with Section 33334.16: This section provides a status update on compliance with Section 33334.16 for interests in real property acquired by the former redevelopment agency prior to February 1, 2012. For interests in real property acquired on or after February 1, 2012, provide a status update on the project.
VIII. Description of Outstanding Obligations unde r Section 33413: This section desc ribes the outstanding inclusionary and replacement hous ing obligations, if any, under Section 33413 that remained outstanding prior to dissolution of the former redevelopment agency as of February 1, 2012 along with the Housing Successor’s progress in meeting those prior obligations, if any, of the former redevelopment agency and how the Housing Successor’s plans to meet unmet obligations, if any.
IX. Income Test: This section provides the information required by Section 34176.1(a)(3)(B), or a description of expenditures by income restriction for five year period, with the time period beginning January 1, 2014 and whether the statutory thresholds have been met. However, reporting of the Income Test is not required until 2019.
X. Senior Housing Test: This section provides the percentage of units of deed-restricted rental housing restricted to seniors and assisted individually or jointly by the Housing Successor, its former redevelopment Agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of deed-restricted rental housing assisted individually or jointly by the Housing Successor, its former Redevelopment Agency and its host jurisdiction within the same time
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period. For this Report the ten-year period reviewed is July 1, 2013 to June 30, 2023.
XI. Excess Surplus Test: This section provides the amount of excess surplus in the LMIHAF, if any, and the length of time that the Housing Successor has had excess surplus, and the Housing Successor’s plan for eliminating the excess surplus.
XII. Homeownership Inventory: An inventory of homeownership units assisted by the former redevelopment agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former redevelopment agency’s investment of moneys from the Low and Moderate Income Housing Fund pursuant to subdivision (f) of Section 33334.
This Report is to be provided to the Housing Successor’s governing body by March 19, 2024. In addition, this Report and the former redevelopment agency’s pre-dissolution Implementation Plans are to be made available to the public on the City’s website at fremont.gov/home/showdocument?id=14951&t=638424866975168248.
I. AMOUNT DEPOSITED INTO LMIHAF
A total of $1,129,033 was deposited into the LMIHAF during the Fiscal Year. Of the total funds deposited into the LMIHAF, no funds were held for items listed on the ROPS. The deposits into the LMIHAF during the Fiscal Year included $512,665 from accounts receivables from rental properties, $424,462 from accounts receivables from homeownership properties and $191,906 from interest allocation.
II. ENDING BALANCE OF LMIHAF
At the close of the Fiscal Year, the ending balance in the LMIHAF was $6,839,321 of which no fund is held for items listed on the ROPS.
III. DESCRIPTION OF EXPENDITURES FROM LMIHAF
The following is a description of expenditures from the LMIHAF by category:
Monitoring and Administration Expenditures $1,050,533
Homeless Prevention and Rapid Rehousing none
Services Expenditures
Total Housing Development Expenditures
• Expenditures on Low Income Units None
• Expenditures on Very Low Income Units None
• Expenditures on Extremely Low Income Units 4,000,000 Total Housing Development Expenditures 4,000,000
LMIHAF Expenditures in Fiscal Year $5,050,533
IV. STATUTORY VALUE OF ASSETS OWNED BY HOUSING SUCCESSOR IN LMIHAF Under the Dissolution Law and for purposes of this Report, the “statutory value of real property” means the value of properties formerly held by the former redevelopment agency as listed on the housing asset transfer schedule approved by the Department of Finance as listed in such schedule under Section 34176(a)(2), the value of the properties transferred to the Housing Successor pursuant to Section 34181(f), and the purchase price of property(ies) purchased by the Housing Successor. Further, the value of loans and grants receivable is included in these reported assets held in the LMIHAF.
The following provides the statutory value of assets owned by the Housing Successor. • Statutory Value of Real Property Owned by Housing Authority: None • Value of Loans and Grants Receivable: $69,674,251
• Total Value of Housing Successor Assets: $69,674,251
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V. DESCRIPTION OF TRANSFERS
The Housing Successor did not make any LMIHAF transfers to other Housing Successor(s) under Section 34176.1(c)(2) during the Fiscal Year.
VI. PROJECT DESCRIPTIONS
The Housing Successor does not receive or hold property tax revenue pursuant to the ROPS.
VII. STATUS OF COMPLIANCE WITH SECTION 33334.16
Section 34176.1 provides that Section 33334.16 does not apply to interests in real property acquired by the Housing Successor on or after February 1, 2012; however, this Report presents a status update on the project related to such real property.
With respect to interests in real property acquired by the former redevelopment agency prior to February 1, 2012, the time periods described in Section 33334.16 shall be deemed to have commenced on the date that the Department of Finance approved the property as a housing asset in the LMIHAF; thus, as to real property acquired by the former redevelopment agency now held by the Housing Successor in the LMIHAF, the Housing Successor must initiate activities consistent with the development of the real property for the purpose for which it was acquired within five years of the date the DOF approved such property as a housing asset.
The following provides a status update on the real property or properties housing asset(s) that were acquired prior to February 1, 2012 and compliance with five-year period: Cottonwood Place, 98 affordable units at 3701 Peralta Blvd, Fremont, CA, was completed on April 20, 2012.
The following provides a status update on the project(s) for property or properties that have been acquired by the Housing Successor using LMIHAF on or after February 1, 2012: None/Not applicable.
VIII. DESCRIPTION OF OUTSTANDING OBLIGATIONS PURSUANT TO SECTION 33413 • Replacement Housing: According to the 2008-2013 Implementation Plan for the former redevelopment agency, no Section 33413(a) replacement housing obligations were transferred to the Housing Successor. The former redevelopment agency’s Implementation Plans are posted on the City’s website at fremont.gov/home/showdocument?id=14951&t=638424866975168248. • Inclusionary/Production Housing: According to the Amended Implementation Plan for the former redevelopment agency, no Section 33413(b) inclusionary/production housing obligations were transferred to the Housing Successor. The former redevelopment agency’s Implementation Plan is posted on the City’s website at
fremont.gov/home/showdocument?id=14951&t=638424866975168248.
IX. EXTREMELY-LOW INCOME TEST
Section 34176.1(a)(3)(B) requires that the Housing Successor must require at least 30% of the LMIHAF to be expended for development of rental housing affordable to and occupied by households earning 30% or less of the AMI. If the Housing Successor fails to comply with the Extremely-Low Income requirement in any five- year report, then the Housing Successor must ensure that at least 50% of the funds remaining in the LMIHAF be expended in each fiscal year following the latest fiscal year following the report on households earning 30% or less of the AMI until the Housing Successor demonstrates compliance with the Extremely-Low Income requirement. This information is not required to be reported until 2019 for the 2014 through the 2019 period.
Fiscal
Year
Fund Balance
at Beginning
of Fiscal Year
30% of Fund
Balance at
Beginning of
Fiscal Year
Total
Expenditure
in Fiscal Year
Affordable
Housing
Development
Expenditures
Funding for
Completed
Extremely-Low
Income Units
% of Fund Balance
Spent on
Development of
Extremely-Low
Income Units
2013-
2014
$1,098,599* $329,580 $449,495 $0 $0 0%
2014- $3,720,901 $1,116,270 $1,688,678 $1,272,331 $423,686 11.4%
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Attachment: Informational Item 3_Low and Moderate Income Housing Assest Fund Annual Report (5099 : 2023 Annual Progress Report on the 4 183\03\3468562.1
2015
2015-
2016
$3,442,211 $1,032,663 $454,918 $0 $0 0%
2016-
2017
$4,714,748 $1,414,424 $564,787 $0 $0 0%
2017-
2018
$5,920,199 $1,776,060 $4,191,476 $3,509,679 $861,312 14.5% 2018-
2019
$3,033,050 $909,915 $770,634 $0 $0 0%
Total $4,782,010 $1,284,998
*In Fiscal Year 2013-2014, monies in the LMIHAF account were separated to remove revenue from non-former Redevelopment Agency/Successor Agency sources. This transfer of funds totaled $4,507,765 that was not subject to LMIHAF requirements. As a result, the LMIHAF balance was reduced from $5,606,364 to $1,098,599. This amount is shown above.
Corrective Action: Between fiscal years 2013-2014 and 2018-2019, two affordable housing projects received a combined $4,782,010 in LMIAHF monies. A portion of the units in each of these projects funded construction of extremely low-income units, totaling $1,284,998. The primary reason for the lack of LMIAHF expenditure on ELI unit construction was that the City was working to build its affordable housing program since they were all eliminated on February 1, 2012, when the City’s Redevelopment Agency was dissolved and its entire staff in Fremont was laid off. Since that time, the City has worked to establish a range of funding sources for affordable housing unit const ruction, as well as internal expertise on how to manage affordable housing project financing and development.
Since the City did not achieve the 30% ELI funding requirement in any year between Fiscal Years 2013-2014 to 2018- 2019, it needed to provide 50% of the beginning fund balance in Fiscal Year 2019- 2020 for construction of ELI units. The beginning fund balance in FY2019- 2020 was $4,795,569 with 50% equaling $2,397,785. The City was unable to identify eligible projects for the spend down of this funding until the identification of two projects through the City’s Notice of Funding Availability (NOFA) in 2021. The City has dedicated $4 million to two NOFA projects. The funding was expended in 2022- 2023 to support the development of ELI units. The units are underway. The City has also dedicated $250,000 per year for five years of LMIAHF monies to a pending Homekey project. Unfortunately, the project did not materialize, as the project failed to secure State Homekey funding. The City will re-allocate the $1,250,000 to other affordable projects through the 2023 NOFA to ensure the City will continue to meet the ELI test.
Fiscal
Year
Fund Balance
at Beginning
of Fiscal Year
50% of Fund
Balance at
Beginning of
Fiscal Year
Total
Expenditure
in Fiscal Year
Affordable
Housing
Development
Expenditures
Funding for
Completed
*Extremely-
Low Income
Units
% of Fund Balance
Spent on
Development of
Extremely-Low
Income Units
2019-
2020
$4,795,569 $2,397,785 $930,503 $0 $0 0%
2020-
2021
$8,654,967 $4,327,484 $937,513 $0 $0 0%
2021-
2022
$10,013,463 $5,006,732 $942,292 $0 $0 0%
2022-
2023
$10,760,821 $5,380,411 $5.050.533 $4,000,000 $4,000,000* 37% Total $4,000,000 $4,000,000 ---
*Note: Construction of the ELI units are underway.
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Attachment: Informational Item 3_Low and Moderate Income Housing Assest Fund Annual Report (5099 : 2023 Annual Progress Report on the 5 183\03\3468562.1
Next Reporting Year (FY2023-2024)
Fund Balance
at Beginning
of Fiscal Year
30% of Fund
Balance at
Beginning of
Fiscal Year
Total
Expenditure
in Fiscal Year
Affordable
Housing
Development
Expenditures
Funding for
Completed
*Extremely-
Low Income
Units
% of Fund Balance
Spent on
Development of
Extremely-Low
Income Units
2023-
2024
$6,839,322 $2,051,797 In progress
The City has been encountering challenges in LMI HAF expenditures on ELI units as there is an increasing desire from public funders as well as State and Federal tax credit to fund ELI and VLI units; therefore, the City anticipates that meeting the ELI test will continue to be a challenge. The City will continue to make good faith effort in dedicating LMIHAF funding to support the development of ELI units.
X. SENIOR HOUSING TEST
The Housing Successor is to calculate the percentage of units of deed-restricted rental housing restricted to seniors and assisted by the Housing Successor, the former redevelopment agency and/or the City within the previous 10 years in relation to the aggregate number of units of deed-restricted rental housing assisted by the Housing Successor, the former redevelopment a gency and/or City within the same time period. If this percentage exceeds 50%, then the Housing Successor cannot expend future funds in the LMIHAF to assist additional senior housing units until the Housing Successor or City assists and construction has commenced on a number of restricted rental units that is equal to 50% of the total amount of deed-restricted rental units.
The following provides the Housing Successor’s Senior Housing Test for the 10 year period of July 1, 2013 through June 30, 2023:
The following provides the Housing Successor’s Senior Housing Test for the 10-year period of July 1, 201 3 through June 30, 2023 . As shown, over the past 10 years, seven projects were constructed using LMIHAF monies. Five of these projects provided a total of 561 family units; the other two projects were restricted to seniors providing 186 units. Restricted, rental senior units comprise 24.9% of the total rental units assisted with LMIHAF monies, less than the 50% maximum established by the Senior Housing Test threshold.
Rental Projects Assisted with LMIHAF
between July 1, 2013 and June 30, 2023
Family
Units
Senior
Units
Total
Units
Main Street Village Apartments 63 --- 63
Peralta Senior Apartments (“Cottonwood Place”) --- 97 97 Laguna Commons Apartments 63 --- 63
Mission Court Senior Apartments --- 89 89
Stevenson Family Apartments 79 --- 79
3900 Thornton Apartments 126 126
MidPen Affordable Housing on Osgood 230 230
Total units 561 186 747
% of Units Constructed 75.1% 24.9% 100%
XI. EXCESS SURPLUS TEST
Excess Surplus is defined in Section 34176.1(d) as an unencumbered amount in the account that exceeds the greater of $1,000,000 or the aggregate amount deposited into the account during the Housing Successor’s preceding four Fiscal Years, whichever is greater. The LMIHAF was not created until February 1, 2012. The table below provides the Excess Surplus test information for the current reporting year and the preceding four fiscal years. The current balance of $ 6,839,321 on deposit in the LMIHA F does not exceed the sum of the annual deposits made in the preceding four fiscal years and, as a result, the LMIHAF does not have an excess
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surplus.
Table: Excess Surplus Test
FY2018/
FY2019
FY 2019/
FY 2020
FY 2020/
FY 2021
FY 2021/
FY 2022
FY 2022/
FY 2023
Beginning
Balance $3,033,050 $4,795,569 $8,654,967 $10,013,463 $10,760,821 Add: Deposits $2,533,153 $4,789,901 $2,296,009 $1,689,650 $1,129,033 (Less)
Expenditures ($770,634) ($930,503) (937,513) $(942,292) $(5,050,533) Ending Balance $4,795,569 $8,654,967 $10,013,463 $10,760,821 $6,839,321
XII. HOMEOWNERSHIP INVENTORY
The inventory of homeownership units assisted by the former redevelopment agency or the housing successor that are subject to covenants or restrictions or include the former redevelopment agency’s investment of moneys from the Low and Moderate Income Housing Fund pursuant to subdivision (f) of Section 33334.3 are listed in a separate document.
The City is monitoring 93 homeownership units (81 Down payment Asst. + 12 Rehab Loan) assisted by the former redevelopment agency or the housing successor that are subject to covenants or restrictions or include the former redevelopment agency’s investment of moneys from the Low and Moderate Income Housing Fund pursuant to subdivision (f) of Section 33334.3.
During the last fiscal year, five homeownership units were lost from the portfolio. The reason for th e loss of the units is summarized below:
Table: Lost Homeownership Unit
Unit Address Reason for Loss
1 34776 Tuxedo Common,
Fremont, CA 94555
Sale of home and paid off loan
2 4573 Deerfield Terrace,
Fremont, CA 94538
Sale of home and paid off loan
3 4746 Central Avenue,
Fremont, CA 94536
Sale of home and paid off loan
4 38543 Royal Ann Common,
Fremont CA
Sale of home and paid off loan
5 3457 Little Court,
Fremont CA.
Sale of home and paid off loan
During the last fiscal year, $424,462 were returned to the housing successor as part of an adopted program that protects the former redevelopment agency’s investment of moneys from the Low and Moderate Income Housing Fund in homeownership programs. This does not include program income from rental properties summarized in Section I, above.
The housing successor monitors its homeownership portfolio and has not contracted with any outside entity for the management of the units.
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Attachment: Informational Item 3_Low and Moderate Income Housing Assest Fund Annual Report (5099 : 2023 Annual Progress Report on the Fremont City Council Meeting: 03/19/24 07:00 PM
3300 Capitol Avenue Div/Dept: Housing
Fremont, CA 94538 Category: Affordable Housing
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5091) DOC ID: 5091
Updated: 3/15/2024 2:22 PM by Susan Gauthier Page 1
AFFORDABLE HOUSING AWARDS - Evaluation of Affordable Housing Proposals Received in Response to the 2023 Notice of Funding Availability (NOFA); Request for Council to Appropriate Funds and Adopt Resolutions and Authorize Execution of Agreements for Three Affordable Housing Projects with USA Properties Fund, Inc., The Pacific Companies and Maracor Development, and Community Development Partners
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: On August 11, 2023, the City issued a Notice of Funding Availability (NOFA) requesting proposals for new affordable housing projects. Six project proposals were received. One proposal was disqualified due to its failure to meet threshold criteria.
One was later withdrawn resulting in four project proposals remaining for the City’s consideration. A review panel consisting of staff and an outside affordable housing finance professional reviewed the proposals and interviewed each applicant team to discuss the projects in more depth.
After careful consideration of each proposal, staff is recommending that the City Council appropriate $34,850,000 and authorize the City Manager to execute agreements for three affordable housing projects totaling 486 units:
• A 150-unit project located at 37440 – 37482 Fremont Blvd. proposed by USA Properties Fund, Inc. ($12,850,000 in City funding)
• A 240-unit project located at 45021 Warm Springs Blvd. proposed by The Pacific Companies and Maracor Development ($12,000,000 in City funding)
• A 96-unit project located at 39340 Fremont Blvd. proposed by Community Development Partners ($10,000,000 in City funding)
BACKGROUND: In August 2023, the City released a NOFA for the creation of affordable housing in Fremont. Staff conservatively estimated that $30 million in funding would be available to support predevelopment, acquisition and construction or rehabilitation of affordable rental housing. Since the release of the NOFA, approximately $5 million in additional funding has become available, increasing the total funding to $35 million. The City funding is intended to fill the financing gap between a project’s total development cost and other available financing sources but is limited to funding of predevelopment and capital costs only (i.e., no funding for operational subsidies or supportive services).
Eligible projects include new affordable housing for households not exceeding 80% Area Median Income (AMI). The NOFA requires all-electric construction and encourages a target
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mix of affordability levels, including units for extremely low-income households (<30% AMI), very-low income households (<50% AMI), and low-income households (<80% AMI) consistent with established City criteria.
Applicants were required to demonstrate site control (through ownership, a long -term lease, or an option to purchase) and submit the requisite documents (appraisal, Phase I Environmental Assessment, Preliminary Title Report, to name a few) for their proposals to be considered. Six proposals were received, five of which met the proposal threshold criteria:
• A 312-unit, two-phase project (150 units in Phase 1, 162 units in Phase 2) located at 37358 – 37482 Fremont Blvd. proposed by USA Properties Fund, Inc. (USA Properties or USA)
• A 240-unit project located at 45021 Warm Springs Blvd. proposed by The Pacific Companies and Maracor Development (TPC/Maracor)
• A 96-unit project located at 39340 Fremont Blvd. proposed by Community Development Partners (CDP)
• A 101-unit project located at 3811 Washington Blvd. proposed by DANCO Communities (Danco)
• An 80-unit acquisition and rehabilitation project located at 5400 Farwell Place proposed by Eden Housing (proposal later withdrawn by applicant).
Evaluation Process
A panel of staff representing the Community Development Department, the Human Services Department, and an affordable housing finance consultant for the City reviewed each of the proposals and interviewed each applicant team. After review of all the proposals, all five applicant teams were interviewed. The review panel also developed detailed questions for each applicant team and reviewed their responses.
After the interview process, Eden Housing withdrew the project proposed at 5400 Farewell Place from consideration; therefore, staff is not providing an analysis of that project.
DISCUSSION/ANALYSIS: A brief summary of each project is provided below.
312-unit (Centerville Station Apartments at 37358 - 37482 Fremont Blvd.) (Phase 1—150 units; Phase 2, 162 units)– USA Properties
USA Properties proposes to construct Centerville Station, a 312-unit affordable housing project on two parcels totaling 4.9-acres. The site is less than a quarter mile from the Centerville Train Station. The site has been vacant for several years due to the bankruptcy of the previous site owner (Silicon Sage). The Zoning for the site is Town Center-Pedestrian (TC-P) District, within the Transit Oriented Development (TOD) Overlay, and the General Plan designation is Commercial-Town Center. Residential uses are permitted as a component of mixed-use projects only. Mixed-use projects within this zoning district must include a substantial commercial component, at least 50 percent of total ground floor area
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that is located within 50 feet of the street frontage shall be designated for commercial and/ or office uses. As described later in this section, the amount of commercial space proposed by USA is less than the standard for mixed-use projects, however no General Plan amendment or rezoning would be necessary because the developer intends to use density - bonus concessions or waivers to allow for reduced commercial space, as permitted under State law.
USA is requesting $24.5 million in City financial assistance for land acquisition. Because of the size of the project, USA proposes to develop the project in two phases but entitle the project as one. Phase 1 and Phase 2 can be developed independently of each other.
Phase 1 would provide a total of 150 units in a five-story building with fifteen units at 30% AMI, thirty units at 50% AMI, forty units at 60% AMI, fifty-three units at 70% AMI, eleven units at 80% AMI and one manager’s unit on a 1.94-acre site. The unit mix includes 83 one-bedroom, 53 two-bedroom, and 14 three-bedroom units. USA is requesting $12.85 million from the City to finance site acquisition for Phase 1.
Phase 2 would provide a total of 162 units in two buildings, one five-story building and one three-story building, with seventeen units at 30% AMI, thirty-three units at 50% AMI, thirty-eight units at 60% AMI, sixty units at 70% AMI, and twelve units at 80% AMI. The unit mix includes 87 one-bedroom, 65 two-bedroom, 10 three- bedroom units and two manager’s units on a 2.96-acre site. USA is requesting $11.65 million from the City to finance site acquisition for Phase 2.
Specific points noted by the evaluation team included:
• The project targets a range of affordability levels (30% to 80% AMI) and a range of unit sizes, meeting the criteria set forth in the NOFA and is located less than a quarter mile from the Centerville Train Station, which will be a convenience for residents.
• The proposed project site has been vacant for several years. The proposed project would add much needed affordable housing in the City and enhance the vitality of the Centerville district.
• USA is a fully integrated real estate enterprise that develops and operates affordable housing projects for over 40 years throughout California (including in Bay Area cities such as Newark, Union City and San Jose), Nevada and Oregon totaling over 2,000 units. Feedback received from references who have past project experience working with USA has been positive.
• A financial review of the project pro forma and USA’s financials indicate that the project is financially feasible, and that USA has the financial capacity to complete the project.
• USA has not previously developed a project in Fremont. • USA is seeking $12.85M for Phase 1 and the balance of $11.65 million for Phase 2.
The total ask of the City is $24.5 million, representing more than 2/3 of the funding available under the NOFA.
• The average per unit subsidy from the City is $79,000 with $85,666 for Phase 1 and $72,000 for Phase 2, well below the average of per unit subsidy for recent affordable housing projects of $110,000.
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• The proposed project has a total development cost per unit of approximately $533,000 with $538,351 for Phase 1 and $527,773 for Phase 2, the lowest out of all proposals.
• The proposed project has an annual service budget of $590 per unit per year. • USA intends to develop an objectively-compliant project with use of density bonus waivers or concessions to allow for a reduced commercial component and reduced open space provisions, as allowed under State density bonus law for projects that provide affordable housing meeting specific target unit thresholds. The developer will pursue a reduction in ground floor commercial spaces (2,446 square feet in Phase 1 and 3,650 square feet in Phase 2 totaling 6,600 square feet). USA proposed to provide the commercial spaces at below-market rental rates to a to-be- determined local community-serving organization or a commercial/retail tenant. USA will work with the City’s Economic Development Department on design considerations and to identify potential tenants for the spaces. • Under California Density Bonus law, and pursuant to Assembly Bill 2097, the proposed project is not subject to a parking minimum requirement. USA would provide 0.85 space per unit which is consistent with other similar successful communities that USA has developed and manages in the region. • The estimated date of completion for Phase I is January 2027 and July 2027 for Phase 2.
• Phase 1 and Phase 2 can be developed independently of each other. The financing plan for Phase 1 would not change if Phase 2 were not awarded City funding.
• Staff is recommending funding for Phase 1 only, as described in the Recommendations section.
A preliminary site plan and a location map of the proposed project are included as Attachment A and Attachment A1 respectively.
240-unit (45021 Warm Springs Blvd.) - The Pacific Companies and Maracor Development
The Pacific Companies and Maracor Development (TPC/Maracor) are jointly proposing a 240-unit affordable housing project on Warm Spring Blvd. less than 0.25 mile from the Warm Springs BART Station. The 2.9-acre site is designated Innovation Center in the General Plan, and is located within Planning Area 8 (BART Area) of the Warm Springs Innovation (WSI-8) zoning district. No General Plan Amendment or Rezoning would be necessary to implement the proposed project.
The four-story modular construction project would provide sixty units at 30% AMI; sixty units at 50% AMI; one hundred and eighteen units at 80% AMI and two manager’s units. The unit mix includes 58 studios, 56 one-bedroom, 62 two-bedroom units and 64 three-bedroom units. TPC/Maracor is requesting $12 million in City financial assistance for construction, or $50,000 per unit.
The evaluation team noted the following:
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• The project targets a range of affordability levels (30% - 80% AMI) and a range of unit sizes, meeting the criteria set forth in the NOFA and is located less than a quarter mile from the Warm Springs BART Station.
• TPC /Maracor has two affordable housing projects underway in Fremont on Osgood Road and they have partnered together on two other affordable projects located in the Bay Area. Staff’s experience in working with the applicant has generally been positive. Feedback received from references who have past project experience working with TPC has been positive.
• TPC is a fully integrated real estate enterprise that develops and operates affordable housing projects throughout the western United States, having completed over 225 affordable housing projects totaling over 9,000 units with an additional 30 projects in development or construction.
• Maracor’s principals have entitled and constructed over 7,000 units, including two in San Francisco totaling 414 units.
• A financial review of the project pro forma and TPC’s financials indicate that the project is financially feasible and that TPC has the financial capacity to complete the project.
• The City funding requested at $50,000 per unit is by far the lowest out of all proposals, making this project extremely cost effective for the City. • The proposed project financing structure leverages $25 million in private debt, reducing the need to rely on other soft financing or public subsidies, allowing the project to move forward relatively quickly.
• The proposed project’s total development cost per unit is approximately $684,000 below the average cost per unit of $750,000 for affordable developments in the region.
• TPC/Maracor’s proposal includes a proposed annual budget of $35,000 for a third-party social service provider, or $147/unit per year. This is the lowest proposed service budget of all the proposals, however it satisfies the Tax Credit Allocation Committee’s prescribed commitment for the project mix and resident population that TPC serves.
• TPC/Maracor intends to develop an objectively-compliant project that invokes density bonus waivers or concessions for an increased building setback and reduced private open space provisions. No General Plan Amendment or Rezonin g would be necessary to implement the project.
• The proposed project would provide approximately 240 parking spaces or one space per unit.
• The estimated date of project completion is end of 2027.
A preliminary site plan and a location map are included as Attachment B and Attachment B1 respectively.
96-unit (39340 Fremont Blvd.)- Community Development Partners
CDP is proposing a 96-unit project located at 39340 Fremont Blvd near the corner of Fremont Blvd. and Walnut Ave. in downtown Fremont. The site is near transit stops, grocery stores, pharmacies, shopping centers, medical facilities and parks. A vacant dental office currently occupies the 0.72-acre site. The General Plan designation for the site is Commercial – City Center and the zoning is Downtown Mid Zone (D-MD) and Downtown Edge (D-E), which allows for various residential uses to be constructed
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above ground level commercial uses. As described later in this section, CDP is not proposing ground level commercial uses, however no General Plan amendment or rezoning would be necessary because the developer intends to use density-bonus concessions or waivers to allow for reduced commercial space, as permitted under State law. The project would provide four stories of residential units above a ground - floor podium used for parking and amenity space. It would provide 10 units at 30% AMI; 10 units at 50% AMI; 65 units at 60% AMI; 10 units at 70% AMI; and one manager’s unit. The unit mix includes 47 one-bedroom, 25 two-bedroom and 24 three- bedroom units. CDP is requesting a total of $10 M in City financial assistance for pre- development ($1 million) and construction ($9 million), or $104,000 per unit.
Specific points noted by the evaluation team included:
• The project targets a range of affordability levels, (30% - 70% AMI) and a range of unit sizes, meeting the criteria set forth in the NOFA. • While CDP has not developed a project in Fremont, it has built, preserved or actively developed 45 projects, comprising over 4,300 units throughout California (includ ing Morgan Hill, Vacaville and San Jose (currently in the pre-development phase)), Oregon, Nevada, and Arizona. Feedback received from references who have past project experience working with CDP has been positive.
• A financial review of the project pro forma and CDP financials indicate that the project is financially feasible, and that CDP has the financial capacity to complete the project.
• The project includes a budget for social services provided of over $100,000/year, and is the highest services budget of any of the proposals, at $1,042/unit/year. • The $104,000 per unit City subsidy requested is the highest ask of any of the four proposals, but is still below the average per unit subsidy for recent affordable housing projects of $110,000.
• The total development cost per unit of approximately $739,000 is the highest of the three recommended projects but is still within the industry average in the Bay Area., • The estimated project completion date is spring of 2027. • CDP intends to develop an objectively-compliant project that invokes density bonus waivers or concessions for a flexible community space along the building’s ground floor Fremont Boulevard frontage in-lieu of a commercial tenant space and a reduced ground floor ceiling height. No General Plan Amendment or Rezoning would be necessary to implement the project.
• The proposed project would provide 58 parking spots or 0.60 space per unit.
A preliminary site plan and a location map are included as Attachment C and Attachment C1 respectively.
The following project proposal is not being recommended for funding.
101-unit (located at 3811 Washington Blvd.) – DANCO Communities
Danco is proposing a project with 101 units that would provide 12 units at 30% AMI; 11 units at 50% AMI; 77 units at 60% AMI; and one manager’s unit. The unit mix includes 32 studio, 18 one-bedroom, 26 two-bedroom and 25 three-bedroom units. The 0.98-acre site’s General Plan designation is Commercial - Town Center, and the site is located within the Town Center – Pedestrian (TC-P) zoning district and the Transit Oriented Development
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(TOD) Overlay. Residential uses are allowed under the current General Plan and zoning as part of a mixed-use project.
Danco is requesting $10,261,555 in City financial assistance for land acquisition and pre- development, or $101,600 per unit.
Specific points noted by the evaluation team included:
• While Danco does not have any Fremont specific experience in the development of affordable housing, it has built or actively developed almost 40 projects, throughout California (including one in Oakland and one San Jose). • The acquisition cost of the land at $9,000,000 was supported by the original appraisal which valued the land at $9,010,000 million or $9.2 million per acre, by far the highest acquisition cost out of all proposals. The appraisal contained inaccurate information and inconsistent assumptions. Based on staff’s feedback, Danco submitted a revised appraisal, however the appraised value did not change. Upon hearing from staff that the $9.2 million per acre land cost is not consistent with other comparable sites in Fremont and therefore, not justifiable for funding recommendation, Danco had the appraisal further revised, reflecting an updated appraised value of $7.16 million. The acquisition price was lowered to $8 million. The revised proposed acquisition price is higher than the latest appraised value and still by far the highest per acre cost out of all proposals.
• In response to staff’s request for the required audited financial statements (as stated in the NOFA document), Danco submitted reviewed financial statements of DANCO Communities. A review of financial statements is less expansive in scope and carries less assurance than an audit. Moreover, audited financial statements include an opinion by the auditor whereas a review does not; therefore, the review panel is unable to ascertain whether Danco is financially sound and has the financial capacity to complete the project.
• The proposed project has an annual service budget of $19,800 or $198 per unit per year which is the second lowest out of the four projects presented on this staff report.
• Although the request of $101,600 per unit from the City is below the average per unit subsidy for recent affordable housing projects of $110,000, the project has the highest total development cost per unit out of all proposals of over $780,000. • The proposed five-story project would add significant bulk and massing to the site’s Main Street frontage, which abuts an area of established, low-scale single-family housing. The project may also require significant revision to satisfy right-of-way dedication and Fire Department access requirements. Additionally, the project features only limited lobby and amenity spaces along the site’s frontages (in -lieu of commercial spaces), hindering activation.
• The estimated project completion date is at the end of 2026.
Recommendations for Funding and Supporting Analysis
After careful evaluation, staff recommends that City Council:
1) Provide $12.85 million in funding in the form of a 55-year loan at a rate of 3% simple interest as stated in the NOFA to USA Properties Funds, Inc. to develop Phase 1, a 150-unit project located at 37440-37482 Fremont Blvd. The acquisition loan will be evidenced by a
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loan agreement and promissory note and will be secured by the land in addition to assignment of project plans and specifications. The developer has confirmed that Phase 1 and Phase 2 can be developed independently of each other. The cost per unit in City subsidy is reasonable. USA is a highly experienced affordable housing developer in California (including the Bay Area), Nevada and Oregon. The proposed project site is located less than one-quarter mile from the Centerville Train Station and would enhance the vitality of the Centerville district by redeveloping part of a blighted site and bringing hundreds of new residents and a modest amount of new commercial space to the area.
The funding will be used to finance the Phase 1 land acquisition cost. The acquisition loan will be evidenced by a loan agreement and promissory note and will be secured by the land in addition to assignment of project plans and specifications.
Staff is not recommending funding for Phase 2 at this time, for the following reasons:
• USA has not completed a project in Fremont previously. Funding Phase 1 will provide USA the opportunity to demonstrate its ability to successfully complete a Fremont project.
• The three recommended projects are in different neighborhoods, consistent with the City’s goal to diversify affordable housing locations. Funding USA’s Phase 2 request would necessitate eliminating funding for one of the other recommended projects, thus reducing the geographic diversity of the funded projects.
2. Provide $12 million in funding (in the form of a 55-year loan at a rate of 3% simple interest as stated in the NOFA) to The Pacific Companies and Maracor Development to develop 240 units of affordable housing located at 45021Warm Springs Blvd. The construction loan will be evidenced by a loan agreement and promissory note and will be secured by the land in addition to assignment of project plans and specifications.
TPC is a highly experienced affordable housing developer in California and the western United States. TPC is partnering on two projects with Maracor in Fremont which are under development. The project is extremely cost effective. With a request of $12 million for construction, the cost per unit City subsidy is $50,000, the lowest of all proposals. Also, there is no reliance on soft public subsidies, allowing the project to reach completion in a timely manner. Because the site has long been planned for a multi-family residential project, no General Plan Amendment or rezoning is necessary for the project to move forward. The proposed project is situated less than 0.25 mile from the Warm Springs BART station.
3. Provide $1 million in pre-development funding, and $9 million in construction funding, for a total amount of $10 million (in the form of a 55-year loan at a rate of 3% simple interest as stated in the NOFA) to Community Development Partners to develop a 96-unit affordable housing project located at 39340 Fremont Blvd. The acquisition and predevelopment loan will be evidenced by a loan agreement and promissory note and will be secured by the l and in addition to assignment of project plans and specifications.
The project is located within close proximity to transit stops, grocery stores, pharmacies, shopping centers, medical facilities and parks which makes it highly convenient for the residents. The conversion of a blighted site into a residential community will add to the vibrancy of the corridor and will support the already-extensive retail offerings in the neighborhood. A financial review of the project pro forma and CDP’s financials indicate that
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the project is financially feasible, and that CDP has the financial capacity to complete the project. The supportive service budget is the most robust of all proposals, and the cost per unit of City subsidy of $104,000 is reasonable.
FISCAL IMPACT: There is approximately $35 million available for the development of affordable housing. Staff is recommending appropriations for the following projects totaling $34.85 million:
1. $12.85 million for the 150-unit Phase 1 project proposed by USA Properties Fund, Inc., with $8.85 million to be appropriated from the Affordable Housing In-Lieu Fee Fund (Fund 196) and $4 million to be appropriated from the Low- and Moderate- Income Housing Asset Fund (Fund 111).
2. $12 million for the 240-unit project proposed by The Pacific Companies and Maracor Developments to be appropriated from the Affordable Housing In-Lieu Fee Fund (Fund 196).
3. $10 million for the 96-unit project proposed by Community Development Partners to be appropriated from the Affordable Housing In-Lieu Fee Fund (Fund 196)
ENVIRONMENTAL REVIEW: The City’s approval of the NOFA is exempt from to the California Environmental Quality Act (CEQA) pursuant to, without limitation CEQA Guidelines Section 15061(b)(3) and/or 15378(b)(2), (4) and/or (5), and section 15262 Feasibility and Planning Studies, each as a separate and independent basis. The action is a governmental fiscal or administrative action which will have no potential to adversely affect the environment, directly or indirectly. The projects seeking the City’s NOFA funding are too speculative for meaningful CEQA analysis at this time, and where the City is providing predevelopment funding prior to preparation of site-specific CEQA analysis, they are exempt as feasibility and planning studies. During their entitlement stage, each project will be individually reviewed for environmental impacts in accordance with CEQA guidelines.
ATTACHMENTS:
• NOFA Reso - USA Properties
• NOFA Reso - TPC Maracor
• NOFA Reso - CDP
• Attachment A - USA Phase 1 Site Plan
• Attachment A1 - USA Project Location Map
• Attachment B - TPC-Maracor - Site Plan
• Attachment B1 - TPC Project Location Map
• Attachment C - CDP Site Plan
• Attachment C1 - CDP Project Location Map
RECOMMENDATIONS:
1. For the 150-unit project proposed by USA Properties Fund, Inc. adopt a Resolution authorizing the City Manager or her designee to: 1) execute loan documents and take such other actions as required to provide a loan of $12.85 million (in the form of a 55- year loan at a rate of 3% simple interest); 2) Correspondingly, appropriate
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$8.85 million to the project from Fund 196 (affordable housing fees) and $4 million to the project from Fund 111 (Low Moderate Income Housing Asset Fund).
2. For the 240-unit project proposed by The Pacific Companies and Maracor Development, adopt a Resolution authorizing the City Manager or her designee to:
1) execute loan agreements and take such other actions as required to provide a loan of $12 million (in the form of a 55-year loan at a rate of 3% simple interest); 2) Correspondingly, appropriate $12 million to the project from Fund 196 (affordable housing fees).
3. For the 96-unit project proposed by Community Development Partners, adopt a Resolution authorizing the City Manager or her designee to: 1) execute loan agreements and take such other actions as required to provide a loan of $10 million (in the form of a 55-year loan at a rate of 3% simple interest); 2) Correspondingly, appropriate $10 million to the project from Fund 196 (affordable housing fees).
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Resolution 2024-XX Page 1 of 2
RESOLUTION NO. 2024-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FREMONT AUTHORIZING A LO AN IN THE AMOUNT OF
$12,850,000 TO USA PROPERTIES FUND, INC. FOR PHASE 1 OF
CENTERVILLE STATION APARTMENTS, AN AFFORDABLE
HOUSING DEVELOPMENT LOCA TED AT 37440-37482 FREMONT
BOULEVARD AND MAKING FINDINGS OF CEQA EXEMPTION
WHEREAS, on August 11, 2023, the City issued a Notice of Funding Availability (NOFA) requesting proposals for new affordable housing projects; and
WHEREAS, USA Properties Fund, Inc. submitted a proposal for a 312-unit affordable development to be located at 37358-37482 Fremont Boulevard; and
WHEREAS, USA Properties Fund, Inc. proposed the project as two phases which can be built independently of one another, with the Phase 1 project located at 37440-37482 to be 150 units; and
WHEREAS, the Phase 1 project would provide units with a range of affordability for extremely low-income to very low-income households, including 15 units at less than 30% AMI, 30 units at 50% AMI, 40 units at 60% AMI, 53 units at 70% AMI and 11 units at 80% AMI, with one manager’s unit; and
WHEREAS, the Phase 1 unit mix includes 83 one-bedroom, 53 two-bedroom and 14 three-bedroom units; and
WHEREAS, an evaluation team of City staff and an outside financial consultant, after reviewing all proposals received and interviewing the development teams, determined that the project is financially feasible, meets the criteria outlined in the NOFA and merits funding; and
WHEREAS, USA Properties Fund, Inc. is an experienced affordable housing developer with demonstrated success in leveraging City funding to secure additional funding; and
WHEREAS, projects seeking the City’s NOFA funding are too speculative for meaningful CEQA analysis at this time, and where the City is providing funding prior to preparation of site- specific CEQA analysis, they are exempt as feasibility and planning studies; and
WHEREAS, during its entitlement stage, the project will be individually reviewed for environmental impacts in accordance with CEQA guidelines.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF FREMONT HEREBY:
SECTION 1. Finds that the above recitals are true and correct and have served, together with the staff report, as the basis for the findings and approvals set forth herein.
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Attachment: NOFA Reso - USA Properties (5091 : AFFORDABLE HOUSING FUNDING AWARDS) Resolution 2024-XX Page 2 of 2
SECTION 2. Finds this action to be exempt from the California Environmental Quality Act (CEQA) pursuant to, without limitation, CEQA Guidelines Section 15061(b)(3) and/or 15378(b)(2), (4) and/or (5), and Section 15262 Feasibility and Planning Studies, each as a separate and independent basis, in that it is a governmental fiscal or administrative action which will have no potential to adversely affect the environment, directly or indirectly.
SECTION 3. Authorizes the City Manager or her designee to execute an acquisition loan agreement and related documents and take such other actions as required to provide a loan in the amount of $12,850,000, in the form of a 55-year loan at a rate of 3% simple interest.
SECTION 4. Appropriates $8,850,000 for the project from Fund 196 (affordable housing fees) and $4,000,000 for the project from Fund 111 (Low Moderate Income Housing Asset Fund).
ADOPTED ______________, 2024, by the City Council of the City of Fremont by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_________________________________
Ma
yor
ATTEST:
__________________________________
City Clerk
APPROVED AS TO FORM:
_________________________________
City Attorney
6.B.a
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Attachment: NOFA Reso - USA Properties (5091 : AFFORDABLE HOUSING FUNDING AWARDS) Resolution 2024-XX Page 1 of 2
RESOLUTION NO. 2024-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FREMONT AUTHORIZING A LO AN IN THE AMOUNT OF
$12,000,000 TO THE PACIFI C COMPANIES AND MARACOR
DEVELOPMENT FOR AN AFFORDABLE HOUSING
DEVELOPMENT LOCATED AT 45021 WARM SPRINGS
BOULEVARD AND MAKING FINDINGS OF CEQA EXEMPTION
WHEREAS, on August 11, 2023, the City issued a Notice of Funding Availability (NOFA) requesting proposals for new affordable housing projects; and
WHEREAS, The Pacific Companies and Maracor Development submitted a proposal for a 240-unit affordable development to be located at 45021 Warm Springs Boulevard; and
WHEREAS, the project would provide units with a range of affordability for extremely low-income to very low-income households, including 60 units at less than 30% AMI, 60 units at 50% AMI and 118 units at 80% AMI, with two manager’s units; and
WHEREAS, the unit mix includes 58 studios, 56 one-bedroom, 62 two-bedroom and 64 three-bedroom units.; and
WHEREAS, an evaluation team of City staff and an outside financial consultant, after reviewing all proposals received and interviewing the development teams, determined that the project is financially feasible, meets the criteria outlined in the NOFA and merits funding; and
WHEREAS, The Pacific Companies and Maracor Development are experienced affordable housing developers with demonstrated success in leveraging City funding to secure additional funding; and
WHEREAS, projects seeking the City’s NOFA funding are too speculative for meaningful CEQA analysis at this time, and where the City is providing funding prior to preparation of site- specific CEQA analysis, they are exempt as feasibility and planning studies; and
WHEREAS, during its entitlement stage, the project will be individually reviewed for environmental impacts in accordance with CEQA guidelines.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF FREMONT HEREBY:
SECTION 1. Finds that the above recitals are true and correct and have served, together with the staff report, as the basis for the findings and approvals set forth herein.
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Attachment: NOFA Reso - TPC Maracor (5091 : AFFORDABLE HOUSING FUNDING AWARDS) Resolution 2024-XX Page 2 of 2
SECTION 2. Finds this action to be exempt from the California Environmental Quality Act (CEQA) pursuant to, without limitation, CEQA Guidelines Section 15061(b)(3) and/or 15378(b)(2), (4) and/or (5), and Section 15262 Feasibility and Planning Studies, each as a separate and independent basis, in that it is a governmental fiscal or administrative action which will have no potential to adversely affect the environment, directly or indirectly.
SECTION 3. Authorizes the City Manager or her designee to execute a construction loan agreement and related documents and take such other actions as required to provide a loan in the amount of $12,000,000, in the form of a 55-year loan at a rate of 3% simple interest.
SECTION 4. Appropriates $12,000,000 from Fund 196 (affordable housing fees) for the project.
ADOPTED ______________, 2024, by the City Council of the City of Fremont by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_________________________________
Ma
yor
ATTEST:
__________________________________
City Clerk
APPROVED AS TO FORM:
_________________________________
City Attorney
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Attachment: NOFA Reso - TPC Maracor (5091 : AFFORDABLE HOUSING FUNDING AWARDS) Resolution 2024-XX Page 1 of 2
RESOLUTION NO. 2024-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FREMONT AUTHORIZING A LO AN IN THE AMOUNT OF
$10,000,000 TO COMMUNITY DEVELOPMENT PARTNERS FOR AN
AFFORDABLE HOUSING DEVELO PMENT LOCATED AT 39340
FREMONT BOULEVARD AND MAKING FINDINGS OF CEQA
EXEMPTION
WHEREAS, on August 11, 2023, the City issued a Notice of Funding Availability (NOFA) requesting proposals for new affordable housing projects; and
WHEREAS, Community Development Partners submitted a proposal for a 96-unit affordable development to be located at 39340 Fremont Boulevard; and
WHEREAS, the project would provide units with a range of affordability for extremely low-income to very low-income households, including 10 units at less than 30% AMI, 10 units at 50% AMI, 65 units at 60% AMI and 10 units at 70% AMI, with one manager’s unit; and
WHEREAS, the unit mix includes 47 one-bedroom, 25 two-bedroom and 24 three- bedroom units.; and
WHEREAS, an evaluation team of City staff and an outside financial consultant, after reviewing all proposals received and interviewing the development teams, determined that the project is financially feasible, meets the criteria outlined in the NOFA and merits funding; and
WHEREAS, Community Development Partners is an experienced affordable housing developer with demonstrated success in leveraging City funding to secure additional funding; and
WHEREAS, Community Development Partners is requesting a total of $10,000,000 in City financial assistance $1,000,000 for predevelopment and $9,000,000 for construction; and
WHEREAS, projects seeking the City’s NOFA funding are too speculative for meaningful CEQA analysis at this time, and where the City is providing funding prior to preparation of site- specific CEQA analysis, they are exempt as feasibility and planning studies; and
WHEREAS, during its entitlement stage, the project will be individually reviewed for environmental impacts in accordance with CEQA guidelines.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF FREMONT HEREBY:
SECTION 1. Finds that the above recitals are true and correct and have served, together with the staff report, as the basis for the findings and approvals set forth herein.
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Attachment: NOFA Reso - CDP (5091 : AFFORDABLE HOUSING FUNDING AWARDS) Resolution 2024-XX Page 2 of 2
SECTION 2. Finds this action to be exempt from the California Environmental Quality Act (CEQA) pursuant to, without limitation, CEQA Guidelines Section 15061(b)(3) and/or 15378(b)(2), (4) and/or (5), and Section 15262 Feasibility and Planning Studies, each as a separate and independent basis, in that it is a governmental fiscal or administrative action which will have no potential to adversely affect the environment, directly or indirectly.
SECTION 3. Authorizes the City Manager or her designee to execute loan agreements and related documents for a $1,000,000 predevelopment loan and a $9,000,000 construction loan and take such other actions as required to provide a total loan amount of $10,000,000, in the form of a 55-year loan at a rate of 3% simple interest.
SECTION 4. Appropriates $10,000,000 from Fund 196 (Affordable Housing Development Fund) for the project.
ADOPTED ______________, 2024, by the City Council of the City of Fremont by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_________________________________
Ma
yor
ATTEST:
__________________________________
City Clerk
APPROVED AS TO FORM:
_________________________________
City Attorney
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Attachment: NOFA Reso - CDP (5091 : AFFORDABLE HOUSING FUNDING AWARDS)
Attachment A
Site Plan of USA Properties Proposed Project Phase 1
Fremont Blvd.
6.B.d
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Attachment: Attachment A - USA Phase 1 Site Plan (5091 : AFFORDABLE HOUSING FUNDING AWARDS) Information Technology Services Department
GIS Division
3300 Capitol Avenue Bldg B
Fremont, CA 94538
BETTENCOURTCT
MEADOWBROO K CM
S EQUOI ACM
ROSE CT
PERALTA CT
VILLAGE CM
JOSEPH ST
PARISH AV
CHURCH AV
BAINE AVE
BELOVERIA CT
PALM CT
CHAUNTRY CM WORTHING CTBONDEW
Y
SUTTON LP
GILLETT RD
JASONWY
PIERCE WY
PARISHCIR
PERALTA BLVD
Centerville Community Plan Area
Centerville Neighborhood
Glenmoor Neighborhood
FREMONT BL
MAPLEST
CENTRAL AV
PERALTA BL
Centerville
Train Depot
Printed 2024-0208 edc
Site 3 - USA Properties - Phase 1 (1.94 Acres) Neighborhood boundary 0 300 600 900150 Feet1:3,600
Site 3 - USA Properties - Phase 1 - 37440-37482 Fremont Blvd Attachment A1
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Attachment: Attachment A1 - USA Project Location Map (5091 : AFFORDABLE HOUSING FUNDING
Attachment B
Site Plan of The Pacific Companies/ Maracor Development proposed project
6.B.f
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Attachment: Attachment B - TPC-Maracor - Site Plan (5091 : AFFORDABLE HOUSING FUNDING AWARDS) Information Technology Services Department
GIS Division
3300 Capitol Avenue Bldg B
Fremont, CA 94538
PARKMEADOW PL
MANDAN CT
OLIVERIA PL
TAVIS PL
PRUNE AVE
SYNERGY ST
ACCELERATOR AVE
TOM BLALOCK ST
NAVIGATION ST
KILOWATT WY
LOPES RD
KINETIC COM
AMBIENT COM
NETWORK COM
HALOGEN COM
VELOCITY COM
ELECTRIC TER
VOLT TER
CHROMA
COM
CIRCUIT
COM
TRANSIT WY
WARM SPRINGS BART
PAVILLION WY
ÑÒ
South Fremont Community Plan Area
Weibel Neighborhood
East Industrial Neighborhood
S GRIMMER BL
W
ARM
SPRINGS
BL
OSGOOD RD
Warm Springs - South
Fremont BART Station
Printed 2024-0313 edc
Site 2 - The Pacific Companies/Maracor (3.00 Acres) Neighborhood boundary Ë0 300 600 900150 Feet1:3,600
Site 2 - The Pacific Companies/Maracor - 45021 Warm Springs Blvd Attachment B1
6.B.g
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Attachment: Attachment B1 - TPC Project Location Map (5091 : AFFORDABLE HOUSING FUNDING 39340 FREMONT BOULEVARD
Attachment C
Site of Community Development Partner's Proposed Project
6.B.h
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Attachment: Attachment C - CDP Site Plan (5091 : AFFORDABLE HOUSING FUNDING AWARDS) Information Technology Services Department
GIS Division
3300 Capitol Avenue Bldg B
Fremont, CA 94538
ROSS
TER
FREMONTHUBCOURTYARD
SANFRANCISCO
TER
BEACON
AVE
STENERSON
LN
CALIFORNIAST
PARK CENTER LN
LANGDONCM
STATE ST
DECLARATION ST
MEMORIAL ST
NATION AVE
SUNDALE DR
Central Community Plan Area
Central/Downtown Neighborhood
Sundale Neighborhood
W
ALNUT
AV
FREMONT BL
ARGONAUT WY
MOWRY AV
Site 1 - Community Development Partners - 39340 Fremont Blvd Printed 2024-0208 edc
Site 1 - Community Development Partners (0.72 Acres) Neighborhood boundary 0 300 600 900150 Feet1:3,600
Attachment C1
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Attachment: Attachment C1 - CDP Project Location Map (5091 : AFFORDABLE HOUSING FUNDING Fremont City Council Meeting: 03/19/24 07:00 PM
3300 Capitol Avenue Div/Dept: City Council
Fremont, CA 94538 Category: Council Referrals & Appointments
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5119) DOC ID: 5119
Updated: 3/15/2024 5:19 PM by Susan Gauthier Page 1
COUNCILMEMBER CAMPBELL REFERRAL – Statement from Fremont City Council on the Conflict in Gaza and Israel
Contact Persons:
Name: Desrie Campbell
Title: Councilmember
Div/Dept: City Council
Phone: 510-284-4008
E-Mail: [email protected]
Discussion: This referral calls for the Fremont City Council to stand united in our call for sustained peace in the Palestine region and end the violence that continues to endanger innocent lives. While the City remains focused on local policy matters, we can no longer stand silent while tragic events continue to claim the lives of innocent people in Israel, Gaza, and the West Bank. Over the last several weeks many of our community members have shared personal stories of trauma, suffering, and death endured by loved ones due to this war.
This referral also calls on the Fremont City Council in solidarity with our community to come together to support initiatives that promote peace in the Palestine region, fosters reconciliation, and work toward mutual understanding.
ATTACHMENTS:
• Draft - Statement from Fremont City Council on the Conflict in Gaza and Israel
RECOMMENDATION: Requesting each Councilmember sign a united statement (reference attached draft statement) on the conflict in Gaza and Israel, and direct staff to publish the signed statement through all city media outlets and issue a press release.
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Draft Statement from Fremont City Council on the Conflict in Gaza and Israel
As leaders of the diverse and compassionate community of Fremont, we are deeply saddened and concerned about the escalating conflict in Gaza and Israel. Our hearts go out to all those affected by the violence, including innocent civilians who are caught in the crossfire.
The Fremont City Council is united in our call for sustained peace in the Palestine region.
While the City remains focused on local policy matters, we can no longer stand silent while tragic events continue to claim the lives of innocent people in Israel, Gaza and the West Bank.
We have a humanitarian obligation as people, to speak out against actions that endanger those who are innocent, and above all, we must call for the safety of children. Over the last several weeks many of our community members have shared personal stories of trauma, suffering, and death endured by loved ones due to this war. We mourn with them and we plea to end the violence that continues to endanger innocent lives. Fremont stands for peace, justice, and human rights for all, regardless of their nationality or background. We strongly condemn any actions that result in harm to civilians or undermine the prospects for a peaceful resolution to the conflict.
Locally, we are observing a disturbing increase in Islamophobia, antisemitism, anti-Arab, anti-Jewish hate, which leaves many feeling isolated. As one of the safest cities in America, this City Council wants to ensure that Fremont is safe and welcoming, where diversity is celebrated, and peace is at our core. We care deeply for our entire community and our highest priority is that Fremont remains a Compassionate City for ALL. This is an incredibly difficult time in our history, and we must stand together hand in hand, committed, and united against hate.
We urge all parties involved to engage in meaningful dialogue to halt the hostilities and address the root causes of the conflict. Only through dialogue and diplomacy can a lasting and just solution be achieved. We call on our community to come together in solidarity and empathy to support initiatives that promote peace in the Palestine region, fosters reconciliation, and work toward mutual understanding.
Together, we can unite to build a better future for all.
7.A.1.a
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Attachment: Draft - Statement from Fremont City Council on the Conflict in Gaza and Israel (5119 : COUNCILMEMBER CAMPBELL REFERRAL –