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 OR DESIGNEE TO AMEND THE
EXISTING LOAN DOCUMENTS WITH COMMUNITY DEVELOPMENT
PARTNERS (CDP) FOR THE CANVAS APARTMENTS PROJECT TO ADD $1,000,000 IN FUNDING FOR THE PROJECT AND TAKE OTHER SUCH
ACTIONS AS REQUIRED TO INCREASE THE TOTAL LOAN AMOUNT
TO $1 1,000,000, APPROPRIATING $1,000,000 FROM FUND 196 (AFFORDABLE HOUSING DEVELOPMENT FUND), AND MAKING
FINDINGS OF CEQA EXEMPTION
WHEREAS, under the 2023 Notice of Funding Availability (NOFA), Community Development Partners (CDP) proposed a 100% affordable multi-family housing development at 39340 Fremont Boulevard, and requested $10,000,000 in City financial assistance; and WHEREAS, on March 19, 2024, the City Council approved an affordable housing loan and appropriated $10,000,000 for the project now known as Canvas Apartments; and
WHEREAS, the City subsequently entered into a $1,000,000 pre-development loan with CDP Site Fund LLC (Borrower), a CDP affiliate, with the expectation that once CDP could demonstrate readiness, the City and Borrower would enter into a $9,000,000 construction loan; and
WHEREAS, the costs of the project total approximately $52 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 May 2026, the City received a request from CDP for an additional $1,000,000 funding due to a financing gap primarily due to significant shifts in the affordable housing financial markets, including lower tax credit equity pricing, higher interest rates and increasing reliance on debt financing; and
WHEREAS, CDP submitted its revised financial proposal, detailed Sources and Uses of funds, 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 and considered that the additional loan of $1,000,000 is reasonable; and
WHEREAS, staff recommends the City Council approve additional funding in the amount of $1,000,000 for the Canvas Apartments affordable housing project; and
Resolution 2026-XX Page 2 of 3
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 $1,000,000 in funding to the project and take such other actions as required to increase the total loan amount to $11,000,000, to Community Development Partners for the Canvas Apartments project.
2. Appropriates $1,000,000 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
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney