Resolution 2025-XX Page 1 of 2
RESOLUTION NO. 2025-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FREMONT AUTHORIZING THE CITY MANAGER TO EXTEND THE
TERM OF EXISTING CITY LOAN AGREEMENT WITH THORNTON
AFFORDABLE HOUSING, L.P., AN AFFILIATE OF RESOURCES
FOR COMMUNITY DEVELOPMENT
WHEREAS, on November 2, 2021, as part of the Notice of Funding Availability (NOFA) process, the City Council approved an acquisition and pre-development loan of $7,600,000 to Resources for Community Development (“RCD”) for the 3900 Thornton affordable housing project; and
WHEREAS, the initial loan term expired on April 1, 2025, the latest anticipated start date for construction, and the City extended the loan agreement for 180 days by operating memorandum, as allowed per the terms of the agreement; and
WHEREAS, in addition to City funding, the project received State Affordable Housing and Sustainable Communities (“AHSC”) funding, but construction cannot start until additional financing is allocated to the project in the form of tax-exempt bonds and 4% tax credits; and
WHEREAS, RCD submitted four applications for tax-exempt bonds, two in 2024 and two in 2025, that were unsuccessful because of the extremely competitive nature of the State’s bond market; and
WHEREAS, due to these continuing funding challenges, RCD has requested to further extend the City loan, which cannot be granted administratively; and
WHEREAS, RCD continues to position the project as competitively as possible by reducing project costs, leveraging additional funds with a HUD 811 Project Rental Assistance award, and revising the unit mix to qualify as “Large Family” housing to take advantage of Fremont’s designation as a high resource area; and
WHEREAS, the borrower has submitted, and staff has reviewed, the documentation necessary to demonstrate that conditions for the loan extension are satisfied, including but not limited to, a certification of no default, an updated schedule of performance and RCD’s statement that there is no adverse change in the financial condition of the borrower; and
WHEREAS, staff recommends an additional two-year loan extension for this project, with a new expiration date of September 28, 2027, to allow for unforeseen delays to the start of construction.
Resolution 2025-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 designee to amend the loan agreement and other implementing documents, and take such other actions as required to extend the term of the existing City acquisition and pre-development loan with Thorton Affordable Housing, L.P., to September 28, 2027; and
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 impact the environment, directly or indirectly; and furthermore, the proposed project was previously found to meet the criteria in Government Code Section 65913.4, amended via Senate Bill 35, thereby making it ministerially exempt from the requirements of CEQA.
ADOPTED , 2025, 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