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 AND
EXTEND THE TERM OF THE EXISTING LOAN AGREEMENT WITH
MP IRVINGTON LLC , AN AFFILIATE OF MIDPEN HOUSING
CORPORATION (MIDPEN), AND MAKING FINDINGS OF CEQA
EXEMPTION
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 $14,000,000 to MidPen for the Osgood Road Family Apartments; and
WHEREAS, the initial loan term expired on June 30, 2025, the latest anticipated start date for construction, and the City extended the loan agreement for a total of 360 days by operating memorandum to June 30, 2026, as allowed per the terms of the agreement; and
WHEREAS, MidPen submitted a request to extend the term of the acquisition and pre- development loan agreement to allow for additional time to secure sufficient financing for the project; and
WHEREAS, following extensive planning, community outreach and conceptual design, the project was officially entitled on August 27, 2024; and
WHEREAS, the project will proceed as a two-phased development with Phase 1 including 119 units and Phase 2 providing 110 units, for a total of 229 units designated for eligible families earning between 30% and 60% of Area Median Income; and
WHEREAS, the predevelopment period has been prolonged because of the highly constrained and competitive affordable housing funding environment; and
WHEREAS, MidPen has evaluated multiple financial options that are currently infeasible; and
WHEREAS, the State of California is currently reorganizing the housing and homelessness funding structure to address inefficiencies, streamline procedures and reduce costs which will result in a single application process to obtain affordable housing funding; and
WHEREAS, implementation of the State’s planned changes will require time, and the earliest round of applications for State tax credits and bonds is anticipated to occur in mid- 2027, with funding awards expected in Fall 2027; and
WHEREAS, if MidPen is successful in securing funding, construction of the first phase of Osgood Family Apartments could begin in early 2028; or, if the initial application round is unsuccessful, MidPen plans to reapply during the next round in 2028, potentially commencing Resolution 2026-XX Page 2 of
3 construction by late 2028; and
WHEREAS once the first phase of the project is underway, it is expected that the second phase will follow soon after, with a targeted start date of June 2029; 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 MidPen’s statement that there is no adverse change in the financial condition of the borrower; and
WHEREAS, staff recommends a two-year loan extension for this project, with a new expiration date of June 30, 2028, plus one additional 180-day period to be issued administratively if needed for Phase 1, to allow for unforeseen delays to start construction; and to ensure that progress continues for both phases without delay, staff recommends an additional 180-day loan extension, establishing a construction start deadline of June 30, 2029 for Phase 2.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF FREMONT HEREBY:
1. 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; and
2. 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 MP Irvington LLC to June 30, 2028, with a 180- day period to be issued administratively for Phase 1, if needed, and an additional 180-day period thereafter to June 30, 2029, for Phase 2.
ADOPTED , 2026, by the City Council of the City of Fremont by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Resolution 2026-XX Page 3 of
3 Mayor
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney