Tuesday, July 28, 2026
6:00 PM
City of Hercules
111 Civic Drive
Hercules, CA 94547
City Council
Mayor Chris Kelley
Vice Mayor Alex Walker-Griffin
Council Member Dilli Bhattarai
Council Member Tiffany Grimsley
Council Member Dion Bailey
Patrick Tang, Interim City Manager
Christie Crowl, City Attorney
Eibleis Melendez, City Clerk
Meeting Agenda
SPECIAL MEETING
In-Person in Council Chambers or Via Zoom:
Zoom ID: 843 3928 4063 Zoom Passcode: 939253
Zoom Phone Number: 1-669-900-6833
1 July 28, 2026City Council Meeting Agenda
See last pages of agenda for information regarding meeting procedures To view webcast of meetings, live or on demand, go to the City's website at www.ci.hercules.ca.us I. SPECIAL CLOSED SESSION - NONE
II. PUBLIC COMMUNICATION - CLOSED SESSION ITEMS - NONE III. CONVENE INTO CLOSED SESSION - NONE
IV. SPECIAL MEETING – CONVENE TO OPEN SESSION - ROLL CALL - 6:00 P.M.
V. A. REPORT ON ACTION TAKEN IN CLOSED SESSION-
NO CLOSED SESSION
B. CONSIDER AND TAKE ACTION ON ANY REQUEST FROM A COUNCIL MEMBER TO
PARTICIPATE IN A MEETING REMOTELY DUE TO JUST CAUSE OR EMERGENCY CIRCUMSTANCES PURSUANT TO AB 2449
XIII. DISCUSSION AND/OR ACTION ITEMS
1. 26-192
Housing Asset Funding Award
RECOMMENDATION:
By minute action, direct staff to enter into negotiations with one of the three proposers for the award of $5,000,000 in Housing Asset Funding to support affordable housing development.
Staff Report
Attach 1 - RSG Evaluation Memo
Presentation
Attachments:
XVI. ADJOURNMENT
The next Regular Meeting of the City Council will be held on Tuesday, September 8, 2026 at 7:00p.m. in the Council Chambers.
Agendas are posted in accordance with Government Code Section 54954.2(a) or Section 54956.
Members of the public can view electronic agendas and staff reports by accessing the City website at www.ci.hercules.ca.us and can receive e-mail notification of agenda and staff report postings by signing up to receive an e-notice from the City’s homepage. Agendas and staff reports may also be obtained by contacting the City Clerk at (510) 799-8200 (Posted: July 23, 2026)
2 July 28, 2026City Council Meeting Agenda
INSTRUCTIONS ON HOW TO PARTICIPATE AND WATCH THE HERCULES CITY COUNCIL AND PLANNING
COMMISSION HYBRID MEETINGS
Attend in Person: Hercules City Council Chambers – 111 Civic Drive, Hercules, CA 94547 Attend via Zoom Teleconference: Details provided below and zoom webinar login, passcode and phone numbers provided on the agenda cover.
How to Submit Public Comments
In Person: Attend meeting at the Hercules City Council Chambers, fill out a public speaker card located on the side table and submit it to the City Clerk.
Via Zoom: Members of the public may submit a remote public comment via Zoom video conferencing. Download the Zoom mobile app from the Apple Appstore or Google Play. If you are using a desktop computer, you can test your connection to Zoom by clicking here or go to: https://www.zoom.us/join. Zoom also allows you to join by phone at +1-669-900-6833 or +1-929-205-6099 or +1-253-215-8782.
Written Comments Submitted Electronically: All comments received before 3:00 p.m. the day of the meeting will be provided to the City Council prior to the meeting and posted to the City’s agenda website and located by clicking on the “meeting details” tab. Written comments received after 3:00 p.m. will be provided to City Council and posted to the agenda website the following day. Written comments will not be read aloud during the meeting. Email comments to [email protected]. Please indicate which item on the agenda you are commenting on in the subject line of your email.
Written comments submitted in person or via mail: Additional ways to provide your public comment is to either drop off your comment in person to the front desk receptionist located in the City Hall lobby or to mail your comment to City of Hercules, ATTN: City Clerk – Public Comment (Meeting Date), 111 Civic Drive, Hercules, CA 94547 in time to reach the City Clerk no later than 3:00 p.m. on the day of the meeting or you can submit your comment by telephone by calling (510) 799-8208 no later than 3:00 p.m. on the meeting date.
If you need assistance with public comment, please contact: Eibleis Melendez, City Clerk at [email protected] or by calling (510) 799-8200.
All public comments will become part of the official meeting record. As email containing public meeting comments are part of the official record, note that personal contact information may be published if it is included with your email. The City cannot guarantee that its network and/or the website will not be uninterrupted. To ensure that the City Council receives your written comments, you are strongly encouraged to submit your comments in writing in advance of the meeting by 3:00 p.m. on the day of the Council or Commission meeting.
3 July 28, 2026City Council Meeting Agenda
OTHER WAYS TO WATCH THE MEETING
Live on Channel 28: City Council meetings will replay the following Thursday at 7:00 p.m. and Saturday at 1:00 p.m.
Planning Commission meetings will replay the following Wednesday at 7:00 p.m. and Saturday at 9:00 a.m.
Video Streamed Live on the City’s Website:
To view City Council and Planning Commission meeting videos online go to: Hercules Meeting Videos.
Instructions to view Live or On-Demand Videos from the City’s website:
1. Go to: Hercules Meeting Videos or https://hercules.legistar.com/calendar.aspx.
2. Locate the desired meeting and date.
3. Click the associated “Video” link (Video status is as follows):
Video = Video is available for on demand viewing.
In Progress = Video is available for viewing during live recording.
Not Available = Video is either unavailable or has not been recorded.
4 July 28, 2026City Council Meeting Agenda
THE HERCULES CITY COUNCIL ADHERES TO THE FOLLOWING POLICIES,
PROCEDURES AND REGULATIONS REGARDING CITY COUNCIL MEETINGS
1. SPECIAL ACCOMMODATIONS: In compliance with the Americans with Disabilities Act and The Ralph M. Brown Act; if you require special accommodations to participate at a City Council meeting or translation or interpretation assistance, please contact the City Clerk at 510-799-8200 at least 48 hours prior to the meeting.
2. AGENDA ITEMS: Persons wishing to add an item to an agenda must submit the final written documentation 12 calendar days prior to the meeting. The City retains the discretion whether to add items to the agenda. Persons wishing to address the City Council otherwise may make comments during the Public Communication period of the meeting.
3. AGENDA POSTING: Agendas of regular City Council meetings are posted at least 72 hours prior to the meeting at City Hall, the Hercules Swim Center, Ohlone Child Care Center, and on the City’s website (www.ci.hercules.ca.us),
4. PUBLIC COMMUNICATION: Persons who wish to address the City Council should complete the speaker form prior to the Council's consideration of the item on the agenda.
Anyone who wishes to address the Council on a topic that is not on the agenda and is relevant to the Council should complete the speaker form prior to the start of the meeting. Speakers will be called upon during the Public Communication portion of the meeting. In accordance with the Brown Act, the City Council may not take action on items not listed on the agenda. The Council may refer to staff any matters brought before them at this time and those matters may be placed on a future agenda.
In the interests of conducting an orderly and efficient meeting, speakers will be limited to three (3) minutes.
Anyone may also submit written comments at any time before or during the meeting.
5. CONSENT CALENDAR: All matters listed under Consent Calendar are considered to be routine and will be enacted by one motion. There will be no separate discussion of these items unless requested by a member of the Council or a member of the public prior to the time the City Council votes on the motion to adopt.
6. LEGAL CHALLENGES: If you challenge a decision of the City Council in court, you may be limited to raising only those issues you or someone else raised at the meeting or in written correspondence delivered at, or prior to, the meeting. Actions challenging City Council decisions shall be subject to the time limitations contained in Code of Civil Procedure Section 1094.6.
5 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of July 28, 2026
TO: Mayor and Members of the City Council
VIA: Patrick Tang, Interim City Manager
SUBMITTED BY: Timothy Rood AICP, Community Development Director SUBJECT: Housing Asset Funding Award
RECOMMENDED ACTION:
By minute action, direct staff to enter into negotiations with one of the three proposers for the award of $5,000,000 in Housing Asset Funding to support affordable housing development.
BACKGROUND:
Housing Asset Fund
The City of Hercules (“City”) serves as the Housing Successor Agency (“Housing Successor”) to the former Hercules Redevelopment Agency (“Redevelopment Agency”).
The Housing Successor’s Low and Moderate Income Housing Asset Fund (“Housing Asset F und”) had a $6.2 million cash balance as of June 30, 2025. The balance is primarily from loan repayments related to homeowner and developer loans issued by the former Redevelopment Agency. Approximately $3 million of the Housing Asset Fund will be forfeite d to the state if not timely committed or awarded to an eligible project ($2,685,377 must be expended or encumbered by June 30, 2027 , and an additional $266,421 must be spent or encumbered by June 30, 2028).
Housing Asset Funds may be used on a variety o f project development costs with the following restrictions:
• At least 30% must be spent assisting extremely low income rental households earning 30% or less of the AMI. No more than 20% may be spent on low income households earning 60% to 80% of the Area Median Income (“AMI”). 6 • Moderate and above moderate-income households (above 80% AMI) may not be assisted with Housing Asset Funds.
• Housing Asset Funds may be used to assist senior units if no more than 50% of rental units assisted by any City funding source are restricted for seniors.
All affordable housing units developed with this funding source must be income restricted for at least 55 years. All deed -restricted affordable housing units within Hercules City limits are subject to the City’s Affordable Housing Policy.
Notice of Funding Availability
The City issued a Notice of Funding Availability (“NOFA”) in October 2025 inviting developers to submit proposals to develop affordable housing utilizing up to $5 million in Housing Asset Funds. Three proposals were received, as shown in Table 1.
Table 1:
Developer Proposals
Developer
Community
HousingWorks
(“CHW”)
Satellite Affordable
Housing
Associates
(“SAHA”)
Eden Housing
(“Eden”)
Project Name Bayline Apartments Sycamore
Crossing
Victoria Green
# of Units 83 100 66
new
units
+132
rehab
units
City staff and RSG, Inc. (“RSG”) initially evaluated each proposal based on the following criteria, as described in the NOFA:
developer qualifications and experience,
financial capacity,
alignment with community and Housing Element goals,
project readiness and economic viability, and
project eligibility and affordability.
RSG scrutinized development pro formas for each proposal and found they all have reasonable cost assumptions that comply with California Tax Credit Allocation Committee rent limits, operating expense minimums, and reserve requirements.
At the May 12, 2026 City Council meeting, staff and RSG presented their evaluation of the three proposals received, for informational purposes.
At the May 26, 2025 City Council meeting, staff and RSG presented their evaluation of the three proposals and recommended the Bayline project for award. The City Council continued their consideration of the awa rd until July 28, 2026 and requested that staff 7 organize an open house at a City facility at which all three developers could present their projects and speak individually with interested parties. The Council also requested that all residents of Promenade, Bayside and Victoria by the Bay (approximately 1,500 households) be notified of the open house.
After coordinating the schedules of all three proposers and the availability of City facilities, staff identified June 20 for the open house, prepared a mail ing list and postcard design, and used a commercial mail house in order to maintain the timeline desired by the Council. Over 60 people attended the open house in the Council Chambers on June 20, with several interested residents submitting their own comments to the Council afterwards.
Housing Policy Considerations
Policy 1.5 calls for the City to encourage development of new special needs housing for seniors, single partners, families, large families, the disabled, including those with developmental disabilities, and extremely low income households. Program H4-1 of the City’s adopted 2023 -31 Housing Element, Housing for Persons with Special Needs, commits the City to prioritize development projects that include a component for special- needs groups and to develop a program to prioritize City funding proposals to affordable housing developments that are committed to supporting special needs residents (e.g. farmworkers, elderly, homeless and persons with disabilities, including developmental disabilities).
Table H-4.7 of the Housing Element notes that in 2020, Hercules had 2,241 residents, or 9% of residents, with disabilities , according to the California Department of Developmental Services (DDS). The majority of Hercules residents with a disability are 75 years or older (46.8%), followed by those 65 to 74 years (21.2%). The most commonly occurring disability amongst seniors 65 and older was an ambulatory disability, experienced by 17.7% of Hercules’ seniors. An ambulatory disability is any disability that prevents or impedes walking.
DDS currently provides community -based services to persons with developmental disabilities and their families through a statewide system of 21 regional centers. The Regional Center of the East Bay serves residents in Hercules. The center is a private, nonprofit community agency that contracts with local service providers to offer a wide range of services to individuals with developmental disabilities and their families. In Hercules, 220 residents are reported as consumers of the services provided at the local Regional Center. Of those receiving services from the center, 122 are 18 years old and above and 98 are below the age of 18. The majority of residents receiving care from the center live in the home of a parent or guardian ( 181), followed by individuals in a community care facility (29), followed next by those living independently or in supported living (11). The Bayline project proposes 21 independent living units for people with intellectual and developmental disabilities in partnership with the Regional Center of the East Bay.
8 ANALYSIS:
In response to the City’s call for any final clarifications of the proposals, all three developers provided supplemental documentation and/or revised pro formas clarifying their funding proposals and/or assumptions on June 29, 2026 . Both Eden and SAHA modified their financial proposals and unit mixes. RSG also identified a way that Eden could allocate funding in order to make the rehabbed units eligible for RHNA credit. CHW added a small ground-floor retail space to their proposed design.
RSG found that the revised proposals all have reasonable cost assumptions that comply with California Tax Credit Allocation Committee rent limits, operating expense minimums, and reserve requirements, and all proposals now assume prevailing wage.
The table below summarizes the key differentiating factors among the three final proposals:
CHW SAHA Eden
Bayline Sycamore
Crossing
Victoria Green
New new +
rehab
Number of new affordable
units
82 99 65 196
Number of new 30% AMI units 29 25 20 34
Weighted Avg Affordability 49.9% AMI 49.9% AMI 48.0% AMI 52.3% AMI Estimated resident count 223 261 92 508
Special needs units 21 IDD* units TBD 33 senior
Potential RHNA Credit 82 99 65 110**
City funding per unit $60,241 $50,000 $75,758 $25,253
*CHW proposes to reserve 21 units for individuals with intellectual and developmental disabilities (IDD) and their families.
**The EDEN/Victoria Green proposal includes both new construction and the rehabilitation of an existing 132-unit project, with extension of its affordability covenants. The combined project is not directly comparable to the other proposals. However, if a certain portion of City funds are allocated towards rehabilitated units serving households under 45% AMI, the City may be able to receive RHNA credit for the rehab as well as the new units.
RSG’s evaluation memo (Attachment 1) presents key components of each development proposal for City Council’s consideration. Mark Sawicki, Director at RSG, will present their findings, and staff and RSG will be available for questions.
While all of the projects and developers are worthy of support, City staff and RSG continue to recommend funding one project instead of splitting the $5 million award between multiple projects. This approach better ensures that the funded project will be more 9 competitive for other key funding sources and, thus, have a higher chance of successful and timely development.
Should Council direct staff to enter into negotiations with one or more developers , staff will return to Council with a draft agreement for approval . When negotiations are complete, staff will return again for authorization to award the funds.
FISCAL IMPACT:
There is sufficient funding for the NOFA award and the City’s anticipated legal and consultant expenses in the Housing Successor’s Low- and Moderate -Income Housing Asset Fund (“Housing Asset Fund”) . The Housing Asset Fund houses all former redevelopment agency housing assets and is subject to expenditure requirements detailed in Health and Safety Code (“HSC”) Section 34176.1. The City oversees expenditure of the Housing Asset Fund.
Per HSC 34176.1 (d), a Housing Asset Fund may not accumulate an “excess surplus” of cash, which is an unencumbered amount that exceeds the greater of $1 million or the sum of deposits in the prior four fiscal years. An excess surplus must be spent within three (3) fiscal years. If the Housing Successor fails to comply, it must transfer the excess surplus to the California Department of Housing and Community Development (HCD).
According to the City’s FY 2024 -25 Housing Successor Annual Report, there was a remaining excess surplus from FY 2023 -24 of $2,685,377 that must be expended or encumbered by June 30, 2027. There is an excess surplus amount for FY 2024-25 of an additional $266,421 that must be spent or encumbered by June 30, 2028. This NOFA was intended to facilitate the encumbrance of the Housing Asset Funds to ensure compliance with this requirement.
ATTACHMENTS
Attachment 1 – RSG evaluation memo
Attachment 2 – RSG presentation
10 To: Timothy Rood, Community Development Director
CITY OF HERCULES
From: Mark Sawicki, Director
RSG, INC.
Date: July 8, 2026
SUBJECT: REVIEW OF DEVELOPMENT PROPOSALS: HERCULES HOUSING SUCCESSOR AGENCY NOFA (2026)
The City of Hercules (“City”) serves as the Housing Successor Agency (“Housing Successor”) to the former Hercules Redevelopment Agency (“Redevelopment Agency”) . The Housing Successor’s Low and Moderate Income Housing Asset Fund (“Housing Asset Fund”) had a $6.2 million cash balance as of June 30, 2025. The balance is primarily from loan repayments related to homeowner and developer loans issued by the former Redevelopment Agency.
The City issued a Notice of Funding Availability (“NOFA”) in October 2025 inviting developers to submit proposals to develop affordable housing utilizing up to $5 million in Housing Asset Funds.
Three developers submitted proposals as shown in Table 1.
Table 1: Developer Proposals
Developer Community Housing
Works (“CHW”)
Satellite Affordable
Housing Associates
(“SAHA”)
Eden Housing
(“EDEN”)
Project Name Bayline Apartments Sycamore Crossing Victoria Green # of Units 83 100
66 new units
198
new + rehab
City staff and RSG, Inc. (“RSG”) evaluated each proposal based on the following criteria , as descried in the NOFA:
• developer qualifications and experience,
• financial capacity,
• alignment with community and Housing Element goals,
• project readiness and economic viability, and
• project eligibility and affordability.
RSG reviewed full proposals and development pro formas from each developer submitted in January 2026, as well as requested updated submissions received on June 29, 2026. RSG found 11 Timothy Rood, Community Development Director
CITY OF HERCULES
July 13, 2026
all proposals and pro formas have reasonable cost assumptions that comply with California Tax Credit Allocation Committee guidelines such as rent limits, operating expense minimums, and reserve requirements. All proposals comply with the Housing Asset Fund requirements as well.
Notably, as compared to the original submissions, the most recent updates result in having three competitive project proposals with much narrower differences between them. Depending on which criteria the City Council prioritizes, they could consider either of the three project proposals to be marginally preferable. City staff and RSG continue to recommend funding just one project, versus splitting the $5 million award between multiple projects. This approach better ensures that the funded project will be more competitive for attracting other key funding sources and may then have a higher chance of successful and timely development.
Table 2 distills the most salient differences among the three proposals for Council consideration:
Table 2: Developer Proposals Key Differences
Developer/Project CHW/Bayline SAHA/Sycamore
EDEN/Victoria*
new new + rehab
Affordable Units 82 99 65 196
Deeply Affordable
(30% AMI) Units 29 25 20 34
Weighted Average
Affordability Level 49.9% AMI 49.9% AMI 48.0% AMI 52.3% AMI # of residents served
(per BR count) 223 261 92 508
Units for Special
Needs Population
21 for Persons with
Intellectual and
Development
Disabilities (IDD)
TBD
33 for Seniors
Potential RHNA credit 82 99 65 110*
City funding per unit $60,241 $50,000 $75,758 $25,253
* Note that the EDEN/Victoria Green proposal includes both new construction and the rehabilitation of an existing 132 unit project, with extension of its affordability covenants. The combined project is not directly comparable to the other proposals. However, i f a certain portion of City funds are allocated towards rehabilitated units serving households under 45% AMI, the City may be able to receive RHNA credit.
Table 3, which follows on subsequent pages, presents further detail on key components of each development proposal for City Council’s consideration.
12 Timothy Rood, Community Development Director
CITY OF HERCULES
July 13, 2026
Table 3
Developer Proposals Expanded Summary Comparison
Developer CHW SAHA Eden
Project Name Bayline
Apartments
Sycamore
Crossing Victoria Green
Location Bayfront Boulevard Sycamore Ave. &
San Pablo Ave.
Paradise Drive
(near Victoria Crescent W)
APN 404-490-102-5
404-490-101-7
404-020-098
404-020-099 404-030-050
Population Served
Individuals and
families
(61 units)
Persons with
Intellectual and
Developmental
Disabilities (IDD)
(21 units)
Individuals and
families
(99 units)
Individuals,
including 50%
Seniors*
(65 new units)
*Reserve the right
to change if it
conflicts with
existing regulatory
agreements
Individuals
and
families
(131
existing
units)
Building Size and Other Project Details:
Total Building Square
Footage 95,980 102,660 46,681
Number of New
Buildings 2 1 1
Number of Stories 4 5 3
Site Control Yes, owns site
Yes, with execution
of Purchase & Sale
Agreement
Yes, owns site
Other Project Notes
Previously
submitted an SB 35
development
application
Simultaneous re-syndication
and rehabilitation of existing
project to leverage tax credits
in support of new construction
Approx. 16% of construction
budget for rehab;
84% of budget for new units
Developer Qualifications and Experience:
Years of Experience Nearly 40 years Over 50 years 58 years Development Portfolio
Developed over 5,100
apartments in 53
communities, with
1,500 units in the
pipeline
Completed 75
affordable
communities in the
Bay Area. House over
4,000 residents
Developed or rehabilitated over
12,930 units statewide
13 Timothy Rood, Community Development Director
CITY OF HERCULES
July 13, 2026
Table 3
Developer Proposal Summary
Developer CHW SAHA Eden
Project Name Bayline
Apartments
Sycamore
Crossing Victoria Green
Number of Units by Income Level:
New Units New + Rehab
30% AMI 29 25 20 34
50% AMI 16 25 18 58
60% AMI 27 49 27 81
80% AMI 10 0 0 23
Manager 1 1 1 2
# of Units 83 100 66 198
Percentage of Units by Income Level:
30% AMI 35% 25% 30% 17%
50% AMI 19% 25% 27% 29%
60% AMI 33% 49% 20% 41%
80% AMI 12% 0% 0% 12%
Manager 1% 1% 1% 1%
Weighted Average
Affordability Level 49.9% AMI 49.9% AMI 48.0% AMI 52.3% AMI
Unit Sizes:
Bedroom Type 1, 2, & 3 BR Studio, 1, 2, & 3 BR Studio & 1 BR Studio, 1, 2, & 3 BR
Weighted Average
Bedroom Size 1.72 1.70 0.71 1.69
Est. Resident Count 223 261 92 508
14 Timothy Rood, Community Development Director
CITY OF HERCULES
July 13, 2026
Table 3
Developer Proposal Summary
Developer CHW SAHA Eden
Project Name Bayline
Apartments
Sycamore
Crossing Victoria Green
Development Cost: New Units New + Rehab
Total Development Cost
(net of land) $60,161,999 $78,620,509 $44,778,036 $53,307,186 Total Development Cost per
Unit (net of land) $724,843 $786,205 $678,455 $269,228
Development Costs Include
Prevailing Wage Yes Yes Yes
Total Developer Fee $2,800,000 $10,515,813 $7,547,677
Total Developer Fee per unit $33,735 $105,158 $38,120
Sources of Funding:
Permanent Loan $8,134,000 $4,392,055 $12,701,552
Deferred Developer Fee $1,400,000 $6,231,876 $3,437,532 Developer Carryback Loan $15,731,079
FHLB Aff Hous Prog (AHP) $1,500,000
HCD: Aff Housing and
Sustainable Comm. ("AHSC") $17,487,831 $29,641,702*
HCD: Multifamily Housing
Program ("MHP")
$13,982,481
Contra Costa Co. (HOME) $2,529,197 $2,161,143
Contra Costa Co. (Measure X) $1,958,865 $3,216,020
East Bay Regional Center $1,500,000
City of Hercules $5,000,000 $5,000,000 $5,000,000
Federal LIHTC Equity (4%) $32,185,856 $28,984,555
Federal LIHTC Equity (9%) $24,357,564
Income from Operations $925,246
GP Capital Contribution $100
Total Sources $62,367,457 $82,167,509 $82,923,688
* If SAHA is unable to secure AHSC funding allocation, its alternate plan is HCD MHP funding. To be competitive for MHP projects on public land, SAHA asks the City to purchase the development site and lease it to SAHA to shield the City from property responsibilities before closing.
City Funding as % of Total 8% 6% 6%
City Funding per Unit $60,241 $50,000 $75,758 $25,253
15 Timothy Rood, Community Development Director
CITY OF HERCULES
July 13, 2026
Cash Flow Projections:
Long Term NOI Positive Positive Positive
Debt Service Coverage
Maintains 1.15x
coverage that
increases each
year
Maintains 1.15x
coverage that
increases each
year thru Yr 15
Maintains 1.15x coverage
that increases each year
thru Yr 25
Potential Soft Loan
Repayment
May begin in Year
11 Not until Year 31 May begin in Year 11
* Per Gov Code Section 64500, only substantial rehabilitated units with affordability of 45% AMI or less, that receive more than $60,000 per unit of City funding, can be included for RHNA reporting. If the City and Eden agreed to apportion City funding for rehab and new construction, then the $5 million NOFA funding could allow the City to take credit for more units under RHNA.
Table 3
Developer Proposal Summary
Developer CHW SAHA Eden
Project Name Bayline
Apartments
Sycamore
Crossing Victoria Green
RHNA Fulfillment:
# of Units That Fulfill Remaining RHNA Need (2025 remaining need) New Units New + Rehab
Very Low or 50% AMI
(343 Units) 45 50 38 83*
Low or 80% AMI
(196 Units) 37 49 27 27
Moderate or 120% AMI (125
Units) 0 0 0 0
Above Moderate
(309 Units) 0 0 0 0
Total (973 Units) 82 99 65 110
16 Timothy Rood, Community Development Director
CITY OF HERCULES
July 13, 2026
Table 3
Developer Proposal Summary
Developer CHW SAHA Eden
Project Name Bayline
Apartments
Sycamore
Crossing Victoria Green
Housing Successor Compliance:
Minimum 30% @ 30% AMI, Maximum 20% @ 60-80% AMI New Units New + Rehab
Number of 30% AMI Units 29 25 20 34
Housing Asset Fund Subsidy Per
30% AMI Unit $172,414 $200,000 $250,000 $147,059
Can Allocate Full Request to 30%
AMI (Per Unit Funding Less than
Total Dev Cost)
Yes Yes Yes Yes
Percent Senior Units 0% 0% 50% 17%
SB 341 Compliance by Age Yes Yes Yes
Alignment with Community Goals
/ Housing Element Needs:
Housing Choice Vouchers
(Program H1-3) no no no
Senior Housing Project (Program
H2-3) no no yes
Alternative Housing Model
(Program H2-5) no no no
Housing for Persons with Special
Needs (Program H4-1) yes no yes
Policy 1.5 Encourage development
of new special needs housing for
seniors, single parents, families,
large families, people with
disabilities, including those with
developmental disabilities, and
extremely low-income households
yes yes yes
Policy 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 law
yes yes yes
Policy H4.5 Encourage housing
serving special needs such as
elderly and disabled
yes no yes
17 Review of Proposals
To Fund Affordable Housing
Development
Hercules Housing Successor Agency
July 28, 2026
18 NOFA and Responses
07/28/2026 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 19
Proposal Evaluation Criteria
☑ Dev eloper qualifications and experience
☑ F inancial capacity
☑ A lignment with Housing Element and community goals
☑ P roject readiness and economic viability
☑ P roject eligibility and affordability
☑ Re asonable cost assumptions
☑ C ompliance with California and Federal funding requirements and rent limits
07/28/2026 Hercules Housing Successor Agency 3
20 Additional Review Factors
✩ N umber of affordable units at deepest levels of affordability ✩ N umber of new residents based on bedroom count
✩ P rogress towards Regional Housing Needs Allocation (RHNA) ✩ P rogress towards Housing Element goals
✩ In come and age limit restrictions on local Housing Fund source ✩ P ositive cash flow projections to cover expenses and debt service ✩ Dev elopment timeline elements: site control, funding commitments, development application status
07/28/2026 Hercules Housing Successor Agency 4
21 RSG Findings:
A ll of the projects and developers are worthy of support. A ll developers have considerable experience and reputations. A ll of the projects provide additional needed housing at varying levels of affordability.
A ll 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.
T he funded project will be more competitive for other funding sources. T he funded project will have a higher chance of successful and timely development.
07/28/2026 Hercules Housing Successor Agency 5
22 Proposals Key Differences
Developer/Project CHW
Bayline Apts
SAHA
Sycamore Crossing
EDEN
Victoria Green
Affordable Units 82 99 65 new 196 new + rehab
Deeply Affordable
(30% AMI) units 29 25 20 34
Weighted Avg
Affordability Level 49.9% AMI 49.9% AMI 48.0% AMI 52.3% AMI # of Residents Served
(per BR count) 223 261 92 508
Units for Special
Needs Populations
Persons with
intellectual and
development
disabilities (21)
TBD Seniors (33)
Potential RHNA credit 82 99 65 110*
City Funding per unit $60,241 $50,000 $75,758 $25,253
07/28/2026 Hercules Housing Successor Agency 6
23 Detailed Proposal Comparison Summary
Developer CHW SAHA EDEN
Project Name Bayline Apartments Sycamore Crossing Victoria Green Location Bayfront Boulevard Sycamore & San
Pablo Ave.
Paradise Drive (near Victoria
Crescent W)
Population Served
(units)
Individuals and
families (61)
Persons with
intellectual and
development
disabilities (21)
Individuals and
families (99)
New Units:
Seniors (65)
Existing Units:
Individuals and
families (131)
Unit Type 1, 2, and 3 BR Studio, 1, 2, and 3 BR Studio and 1 BR Studio, 1, 2, and 3 BR
07/28/2026 Hercules Housing Successor Agency 7
24 Detailed Proposal Comparison Summary
07/28/2026 Hercules Housing Successor Agency
Developer CHW SAHA EDEN
Number of Units by Income Level: New Units New + Rehab
30% AMI 29 25 20 34
50% AMI 16 25 18 58
60% AMI 27 49 27 81
80% AMI 10 0 0 23
Manager 1 1 1 2
# of Units 83 100 66 198
Target Income Levels as % of Total Units:
30% AMI 35% 25% 30% 17%
50% AMI 19% 25% 27% 29%
60% AMI 33% 49% 20% 41%
80% AMI 12% 0% 0% 12%
Manager 1% 1% 1% 1%
Weighted Avg Affordability 49.9% AMI 49.9% AMI 48.0% AMI 52.3% AMI Weighted Avg Bedroom Size 1.72 1.70 0.71 1.69
Est. Resident Count 223 261 92 508
8 25
Developer Proposal Comparison Summary
07/28/2026 Hercules Housing Successor Agency
Developer CHW SAHA EDEN
Total New Building Sq Ft 95,980 102,660 46,681
Number of Stories 4 5 3
New Units New + Rehab
Total Development Cost
(net of land) $60,161,999 $78,620,509 $44,778,036 $53,307,186 Cost per Unit (net of land) $724,843 $786,205 $678,455 $269,228 Include Prevailing Wage Yes Yes Yes
Developer Fee $2,800,000 $10,515,813 $7,547,677
Developer Fee per unit $33,735 $105,158 $38,120
City Funding Requested $5,000,000 $5,000,000 $5,000,000 City Funding per Unit $60,241 $50,000 $75,758 $25,253
Cash Flow Projections:
Long Term NOI:
Debt Service Coverage:
Potential Soft Loan
Repayment:
Positive;
Maintains 1.15x
coverage;
May begin in Year 11
Positive;
Maintains 1.15 coverage
thru Yr 15;
Not until Year 31
Positive;
Maintains 1.15 coverage thru Yr
25;
May begin in Year 11
9 26
Developer Proposal Comparison Summary
07/28/2026 Hercules Housing Successor Agency
Developer CHW SAHA EDEN
Housing Successor Compliance: Minimum 30% @ 30% AMI, Maximum 20% @ 60-80% AMI New Units New + Rehab
Number of 30% AMI Units 29 25 20 34
Housing Asset Fund Subsidy
Per 30% AMI Unit $172,414 $200,000 $250,000 $147,059
Can Allocate Full Request to
30% AMI Yes Yes Yes Yes
Percent Senior Units 0% 0% 50% 17%
SB 341 Compliance by Age Yes Yes
Yes
10 27
Developer Proposal Comparison Summary
07/28/2026 Hercules Housing Successor Agency
Developer CHW SAHA EDEN
Alignment with Community Goals / Housing Element Needs:
Housing Choice Vouchers (Program H1-3) no no no
Senior Housing Project (Program H2-3) no no yes
Alternative Housing Model (Program H2-5) no no no
Housing for Persons with Special Needs (Program H4-1) yes no yes Policy 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 households
yes yes yes
Policy 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 law
yes yes yes
Policy H4.5 Encourage housing serving special needs
such as elderly and disabled
yes no yes
11 28
Mark Sawicki
Director
[email protected]
Suzy Kim
Director
[email protected]
29