CITY COUNCIL MEETING
FEBRUARY 20, 2024
PRESENTATIONS
ITEM #8
PH 24-006
Sale of Parcel Group 8 for Development of
Affordable Housing
Hayward Police Department Year-End Report
238 Corridor Lands Development:
Parcel Group 8
First Amendment to DDLA
February 20, 2024
Christina Morales, Housing Division Manager
Craig Whittom, Consultant
Hayward Police Department Year-End Report
Parcel Group 8
Hayward Police Department Year-End Report
Parcel Group 8 Property Background
• 2016 - City and Caltrans executed
Purchase Agreement to Transfer 238
Corridor lands.
• 2017 – Parcel Group 8 Parcels
transferred to City by Caltrans.
Portion of site is in City Limits and
portion in Alameda County
unincorporated land
• 2020-Council Authorized Exclusive
Negotiating Rights Agreement
(ENRA) with RCD
• 2022 - City executed Development
Disposition and Loan Agreement
(DDLA) with RCD
Hayward Police Department Year-End Report
DDA Key
Terms
Purchase Price: $0. Developer must provide evidence of
financing prior to property transfer by City.
Developer signed voluntary covenant to restrict
affordable units in perpetuity
City commits up to $2M of Inclusionary Housing Fees as
a loan
Zero displacement goal and relocation plan for existing tenants
Developer formed an LLC Company and Limited
Partnership to support financing efforts
Developer to pay to extend City water line
Original
DDLA Key
Terms
Hayward Police Department Year-End Report
Activity since DDLA was executed
• Development environment more challenging
• Interest rates - increased
• Construction costs - continue at high level
• Affordable housing funds - remains strong
• Tenant profile
• Currently 7 of original 11 households occupy units on property. City hired property manager.
• RCD recent activity
• Pursued and was awarded grant funds for site cleanup
• Engagement. Tenant meeting last month. Community Zoom meeting on 2/15. • Preparing for funding applications.
Hayward Police Department Year-End Report
Proposed First Amendment to DDLA
Staff and RCD have negotiated terms of First Amendment 1 to DDLA.
Key modifications are:
• Extension of the deadline for parcel transfer from 12/31/24 to 12/31/26 • Project on City Parcel size reduced from “up to 96 units” to 82 units but increase unit size
• Increase the amount loan funds that can be used for predevelopment costs to $1.25 million
• Commitment to rehabilitate number of units occupied at close of escrow • Quarterly Financing Plan updates
Hayward Police Department Year-End Report
Recommended City Council action
Conduct public hearing.
Adopt two resolutions
• Authorizing City Manager to execute First Amendment to DDA • Authorizing the City Manager to negotiate and enter into an agreement with RCD regarding AHSC funds.