Resolution 2026-XX Page 1 of 3
RESOLUTION NO. 2026-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FREMONT
AUTHORIZING THE CITY MANAGER TO AMEND THE EXISTING
LOAN DOCUMENTS WITH RESOURCES FOR COMMUNITY
DEVELOPMENT FOR THE THORNTON & POST APARTMENTS
PROJECT TO ADD UP TO $11,176,908 IN FUNDING FOR THE PROJECT
AND TAKE OTHER SUCH ACTIONS AS REQUIRED TO INCREASE
THE TOTAL LOAN AMOUNT TO $18,776,908, APPROPRIATING AN
AMOUNT NOT -TO-EXCEED $11,176,908 FROM FUND 196
(AFFORDABLE HOUSING DEVELOPMENT FUND), AND MAKING
FINDINGS OF CEQA EXEMPTION
WHEREAS, under the 2021 Notice of Funding Availability (NOFA), Resources For Community Development (RCD) proposed a 100% affordable multi-family housing development at 37027 Post Street, and requested $17,276,908 in City financial assistance; and WHEREAS, on November 2, 2021, the City Council approved an acquisition and pre- development loan of $7,600,000 to RCD for the project now known as Thornton & Post Apartments; and
WHEREAS, at that time, staff stated that once RCD could demonstrate readiness for construction, staff would return to Council for the appropriation of balance of funding amount of $9,676,908 for the construction loan; and
WHEREAS, the costs of the project total approximately $98 million which, in addition to the City’s affordable housing loan, is proposed to be financed largely through multi-family housing revenue bonds and Low-Income Housing Tax Credits (LIHTC) awarded in December 2025; and
WHEREAS, in February 2026, the City received a request from RCD for an additional $1,500,000 funding due to a financing gap primarily resulting from a nationwide drop in the value of low-income housing tax credits and increased construction loan interest rates; and
WHEREAS, RCD submitted its revised financial proposal, detailed Sources and Uses of funds, a copy of their LIHTC application, and other supporting documents, which were reviewed and analyzed by the City’s affordable housing financial consultant; and
WHEREAS, the financial consultant affirmed that the project is facing a funding gap but additional information is required, and has been requested, from RCD to ascertain the total amount needed; and
Resolution 2026-XX Page 2 of 3
WHEREAS, due to timing to meet various milestones to start construction in June 2026, staff is recommending up to $1,500,000 in additional funding for this project to provide staff with the flexibility to decrease the loan amount administratively should the financial analysis make this determination; and
WHEREAS, there is sufficient funding available in the Affordable Housing Fund (Fund 196) for this action.
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 existing loan agreement and other implementing documents to add up to $11,176,908 in funding to the project and take such other actions as required to increase the total loan amount to $18,776,908, to Resources for Community Development for the Thornton & Post Apartments project.
2. Appropriates an amount not-to-exceed $11,176,908 from Fund 196 (Affordable Housing Development Fund).
3. Finds this action to be exempt from the California Environmental Quality Act (CEQA) pursuant to, without limitation, CEQA Guidelines Sections 15268 and 15369 (ministerial project). Further, the proposed additional funding for the project and loan agreement are exempt from CEQA as it does not constitute a project within the meaning of CEQA, without limitations, in accordance with CEQA Guidelines Section 15378(b)(2), (4) and/or (5) and/or 15061(b)(3), each as a separate and independent basis, 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 , 2026, by the City Council of the City of Fremont by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
Resolution 2026-XX Page 3 of 3
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney