Hercules City Council
May 26, 2026

Review of ProposalsTo Fund Affordable Housing DevelopmentHercules Housing Successor AgencyMay 26, 2026 NOFA and Responses
05/26/2026 Hercules Housing Successor Agency
Notice of Funding Availability (NOFA) issued in October 2025 $5 Million available from the Low- and Moderate-Income Housing Asset Fund of the Housing Successor to the former Hercules Redevelopment Agency Three (3) Developers responded:- Community Housing Works (CHW)- Satellite Affordable Housing Associates (SAHA)- Eden Housing (EDEN)2 Proposal Evaluation Criteria☑Developer qualifications and experience☑Financial capacity☑Alignment with Housing Element and community goals☑Project readiness and economic viability☑Project eligibility and affordability☑Reasonable cost assumptions☑Compliance with California and Federal funding requirements and rent limits05/26/2026 Hercules Housing Successor Agency 3 Additional Review Factors✩Number of affordable units at deepest levels of affordability✩Number of new residents based on bedroom count✩Progress towards Regional Housing Needs Allocation (RHNA)✩Progress towards Housing Element goals✩Income and age limit restrictions on local Housing Fund source✩Positive cash flow projections to cover expenses and debt service✩Development timeline elements: site control, funding commitments, development application status05/26/2026 Hercules Housing Successor Agency 4 RSG Recommendations:All of the projects and developers are worthy of support. All developers have considerable experience and reputations. All of the projects provide additional needed housing at varying levels of affordability.All of the projects are projected to be completed at a reasonable development cost.It is better to fund one project than split the $5 million available to multiple projects.The funded project will be more competitive for other funding sources.The funded project will have a higher chance of successful and timely development.05/26/2026 Hercules Housing Successor Agency 5 RSG Recommendations:The CHW Bayline Apartments proposal is recommended:Proposes the deepest level of affordabilityServes the highest number of new residents based on bedroom countProduces 82 new units that count toward the City’s Regional Housing Needs Allocation (RHNA)Meets Housing Asset Fund expenditure limits for income level and age restrictionsMeets Housing Element goal to facilitate development serving a special needs populationProjects positive cash flow sufficient to cover expenses and debt serviceFurthest along in development application efforts05/26/2026 Hercules Housing Successor Agency 6 Developer Proposal Comparison SummaryEDENSAHACHWDeveloperVictoria GreenSycamore CrossingBayline ApartmentsProject NameParadise Drive (near Victoria Crescent W)Sycamore & San Pablo Ave.Bayfront BoulevardLocationExisting Units:Individuals and families (132)New Units:Seniors (66)Individuals and families (100)Individuals and families (62)Persons with intellectual and development disabilities (21)Population Served (units)Studio, 1, 2, and 3 bedStudio and 1 bedStudio, 1, 2, and 3 bed1, 2, and 3 bedUnit Type05/26/2026 Hercules Housing Successor Agency 7 Developer Proposal Comparison Summary
05/26/2026 Hercules Housing Successor Agency
EDENSAHACHWDeveloperNumber of Units by Income Level:New + RehabNew Units217112930% AMI8545301650% AMI6713582760% AMI231080% AMI2111Manager1986610083# of Units1.690.711.691.74Weighted Avg Bedroom Size50892260269Est. Resident CountTarget Income Levels as % of Total Units:11%11%11%35%30% AMI43%69%30%19%50% AMI34%20%59%33%60% AMI12%0%0%12%80% AMI1%1%1%1%Manager53% AMI50% AMI54% AMI49% AMIWeighted Avg Affordability8 Developer Proposal Comparison Summary
05/26/2026 Hercules Housing Successor Agency
EDENSAHACHWDeveloper46,681102,66095,980Total Building Sq Ft354Number of StoriesNew + RehabNew Units$5,000,000 $5,000,000 $5,000,000 City Funding Requested$25,253$75,758 $50,000 $60,241 City Funding per Unit$40,427,523$34,427,523$77,897,924 $60,430,339 Total Development Cost (net of land)$204,179$521,629$778,979 $728,076 Cost per Unit (net of land)$5,919,086$3,842,078$2,800,000Net Developer Fee NoYesYesInclude Prevailing WageYes, owns siteYes, with execution of Purchase & Sale AgreementYes, owns siteSite ControlNegative NOI after 24 Years, Debt service coverage declines after Year 12, No soft loan repayments Positive NOI, Maintains 1.15 debt service coverage, Soft loan repayments begin in Year 7Positive NOI, Maintains 1.15 debt service coverage, Soft loan repayments begin in Year 11Cash Flow 9 Developer Proposal Comparison Summary
05/26/2026 Hercules Housing Successor Agency
EDENSAHACHWDeveloperHousing Successor Compliance: Minimum 30% @ 30% AMI, Maximum 20% @ 60-80% AMINew + RehabNew Units2171129Number of 30% AMI Units$238,095$714,286$454,545$172,414Housing Asset Fund Subsidy Per 30% AMI Unit$204,179$521,629$778,979$728,076Total Development Cost Per Unit (net of land)NoNoYesYesCan Allocate Full Request to 30% AMI (Per Unit Funding Less than Total Dev Cost)Subsidy per 30% AMI unit exceeds development costSubsidy per 30% AMI unit exceeds development costComplies, can allocate all funding to 30% AMIComplies, can allocate all funding to 30% AMISB 341 Compliance by Income Level33%100%0%0%Percent Senior UnitsExceeds 50% maximum for seniorsYesYesSB 341 Compliance by Age10 Developer Proposal Comparison Summary
05/26/2026 Hercules Housing Successor Agency
EDENSAHACHWDeveloperAlignment with Community Goals / Housing Element Needs: nononoHousing Choice Vouchers (Program H1-3)yesnonoSenior Housing Project (Program H2-3)nononoAlternative Housing Model (Program H2-5)yesnoyesHousing for Persons with Special Needs (Program H4-1)yesyesyesPolicy 1.5 Encourage development of new special needs housing for seniors, single parents, families, large families, the disabled, including those with developmental disabilities, and extremely low-income householdsyesyesyesPolicy 1.6. Use density bonuses and other incentives to facilitate the development of new housing for extremely low, very low- and low-income households in conformity with State lawyesnoyesPolicy H4.5 Encourage housing serving special needs such as elderly and disabled11 Mark [email protected] [email protected]