ATTACHMENT II
HAYWARD CITY COUNCIL
RESOLUTION NO. 25 –_______
Introduced by Council Member______________
RESOLUTION AUTHORIZING THE CITY MANAGER TO NEGOTIAT E AND
EXECUTE A NON -APPLICANT AGRE EMENT WITH RESOURCES FOR
COMMUNITY DEVELOPMEN T OR ITS AFFILIATES IN CONNECTION WITH
THE CALIFORNIA AFFOR DABLE HOUSING SUSTAINABLE COMMUNITIES
NOTICE OF FUNDING AVAILABILITY AND THAT CERTAIN DISPOSITION
DEVELOPMENT AND LOAN AGREEMENT, AS AMENDED, BETWEEN RCD GP IV LLC AND PARCEL GROUP 8, L.P. AND FINDING THAT THE ACTION IS
EXEMPT FROM REVIEW PURSUANT TO THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT
WHEREAS, the City of Hayward entered into a Purchase and Sale Agreement (PSA) with Caltrans in January 2016 to acquire 10 parcel groups comprised of properties acquired by Caltrans for the State Route 238 expansion project; and
WHEREAS, Caltrans granted the properties to the City in trust pursuant to State Route 238 Local Alternative Transportation Improvement Program (Government Code Sections 14528.6 and 14528.65); and
WHEREAS, Caltrans has transferred those properties to the City subj ect to the City managing the disposition and development of these former State Route 238 parcel groups with the goals of removing blight, enhancing community involvement in the development process, and creating economic and public benefits, such as job gen erating uses and trails and parks; and
WHEREAS, a s the City sells or transfers particular parcels, the City is obligated to repay Caltrans the negotiated purchase prices for the various parcel groups under the PSA ; and
WHEREAS, under Government Code Section 54221(f)(1)(A) "exempt surplus land" is defined to include surplus land that is transferred pursuant to Government Code Section 37364; and
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WHEREAS, under Government Code Section 37364, whenever a City determines that its property can be used for th e provision of affordable housing to families of low or moderate income as defined in Health & Safety Code Section 50093, and that the use is in the City's best interest, the City may sell or otherwise convey the property under whatever terms and conditions it deems appropriate as long as at least 80% of the area of the property being disposed is used for the development of housing, and that at least 40% of the total housing units are restricted to low and very low incomes as specified under Government Code Section 37364(c-d); and
WHEREAS, at least 80% of the developable area of geographically clustered Parcel Group 8 will be used for the generation of housing, and at least 40% of the residential units will be affordable as specified under Government Code Section 37364(c-d); and
WHEREAS, the production and rehabilitation of affordable housing in a comprehensive manner over Parcel Group 8 housing properties is in the best interest of the City as it allows the housing to be built in an expedient manner with project components that are nearly shovel ready and as it avoids detrimental impacts often associated with the concentration of poverty and provides the greatest economic, social, and education opportunities to all residents of Hayward regardless of income; and
WHEREAS, on February 8, 2022, the Council declared the Parcel Group 8 properties "exempt surplus land" because the land will be transferred to provide affordable housing pursuant to Government Code Section 37364, as the sale of these parcels for the generation of housing is in the City's best interest as set forth in adopted Resolution 22-037; and
WHEREAS, on March 1, 2022, the State of California Housing and Community Development Department sent a letter to the City finding that Parcel Group 8 prop erties qualify as "exempt surplus land" under Government Code section 54221 (f)(1), consistent with the City's adopted resolution 22-037; and
WHEREAS, on September 15, 2019 , the Council authorized the City Manager to negotiate and enter into an Exclusive N egotiating Rights Agreement (ENRA) with the proposed Resources for Community Development (RCD) , the developer's predecessor in interest; and
WHEREAS, after significant due diligence and site planning efforts, RCD successfully completed the obligations under the ENRA and on June 28, 2022, the City Council authorized the City Manager to negotiate and execute a Disposition Development and Loan Agreement for the development of a portion of the Parcel Group 8 parcels (the “Property”). RCD GP IV, LLC, a Calif ornia limited liability company (the "Company") and Parcel Group 8, L.P., a California limited partnership (the "Partnership") (collectively, the “Developer”) and the City entered into a Disposition, Development and Loan Agreement (the “Original DDA”); and
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WHEREAS, the City Council approved an amendment to the Original DDA on the same date as this Resolution (as amended, the “DDA”); and
WHEREAS, the DDA contemplates the City will convey the Property to the Company to enable the Partnership to: (1) acquire a leasehold interest in 1.54 acres of property which are located within the City of Hayward and is vacant land (the "City Housing Parcels"); (2) acquire a fee interest in approximately 0.82 acres which are located within unincorporated Alameda County, which contain existing improvements (the "County Housing Parcel"); (3) develop 82 units of multifamily rental affordable housing on the City Housing Parcels (the “City Parcel Improvements”; and (4) rehabilitate existing improvements and develop other improvements on the County Housing Parcels (the “County Parcel Improvements); and
WHEREAS, in order to finance the development of the City Parcel Improvements and the County Parcel Improvements, the sponsor of the Company and Partnership, Resources for Community Development (“RCD”) is applying for Affordable Housing Sustainable Communities (the “AHSC”) funding fro m the California Department of Housing and Community Development (“HCD”) through HCD’s Round 9 Notice of Availability of Funding for AHSC funds, dated March 25, 2025 (the “NOFA”); and
WHEREAS, in addition to financing the City Parcel Improvements and the County Parcel Improvements, the AHSC funds can be utilized for financing transportation improvements and amenities constructed by public agencies and the development of such improvements and amenities will make RCD’s application for AHSC funding meet certain application thresholds and increase its competitiveness; and
WHEREAS, the City desires to cooperate in RCD’s AHSC application and enter into a non- applicant cooperation agreement with RCD (the “AHSC Agreement”), where the City will be able to provide its experience for certain transportation improvements and amenities, including sidewalk, transits signal priority equipment, and new bus shelters, in exchange for Up to $3 Million in grant funding that will finance such improvements and/or amenities (“AHSC Grant Funds”).
NOW, THEREFORE, BE IT RESOLVED that the City Council finds that the above recitals are true and correct and have served, as the basis for the approvals set forth below.
BE IT FURTHER RESOLVED, that the City Manager is hereby authorized to negotiate and execute the AHSC Agreement in order to access and utilize the AHSC Grant Funds and to facilitate the use of other AHSC funding for the City Parcel Improvements and the County Parcel Improvements.
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BE IT FURTHER RESOLVED, the City Council finds and determines that authorization and execution of the AHSC Agreement with RCD is exempt from environmental review pursuant to Section 15061(b)(3) of the CEQA Guidelines since it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. If public infrastructure projects are undertaken by the City, they will be subject to environmental review at the appropriate time.
BE IT FURTHE R RESOLVED, that the City Manager or designee shall execute such other instruments, and take any and all other action, as may be reasonbly necessary to accept, access and utilize the AHSC grant funds.
IN COUNCIL, HAYWARD, CALIFORNIA_________________, 2025
ADOPTED BY THE FOLLOWING VOTE:
AYES: COUNCIL MEMBERS:
MAYOR
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS
ATTEST:_____________________________________
City Clerk of the City of Hayward
APPROVED AS TO FORM:
__________________________________________
City Attorney of the City of Hayward