Community Development Department
DATE: February 6, 2023
TO: Notice of Funding Availability Review Committee
FROM: Deanna Talavera, Senior Housing Officer
Brittany Whitehill, Associate Planner
Elaheh Kerachian, Senior Planner
Micaela Hellman-Tincher, Housing and Neighborhood Services Manager Wayne Chen, Assistant Community Development Director
Aarti Shrivastava, Assistant City Manager/Community Development Director
SUBJECT: Consideration of Alta Housing Notice of Funding Availability Proposal:
1012 Linda Vista Avenue and 96 West El Camino Real
PURPOSE
The purpose of this memorandum is to provide information to the Notice of Funding Availability (NOFA) Review Committee on two proposed affordable housing projects: one by Alta Housing at 1012 Linda Vista Avenue and another by Danco Communities at 96 W est El Camino Real. The role of the NOFA Review Committee is to review NOFA proposals, determine if proposals meet the NOFA criteria and other community objectives, and decide if proposals should be forwarded to the City Council for a reservation of funding. To assist the NOFA Review Committee in evaluating the proposals, Attachments 1 and 2 provide project -specific information for each development.
BACKGROUND
In February 2014, the City of Mountain View released a Notice of Fun ding Availability (NOFA) , which initially made available over $12.5 million in local funds for new affordable housing developments. These funds were made available on a first-come, first-served basis. Since that time, the City has generated additional revenues through its housing fee programs, and the City Council has appropriated approximately $117 million to facilitate the development of eight fully affordable housing developments for a combined total of 685 affordable housin g units. NOFA applications are reviewed by both Housing and Planning staff prior to bringing a recommendation for funding to the NOFA Review Committee. The recommendation from the NOFA Review Committee is then brought to the City Council for action on the funding.
Consideration of Alta Housing Notice of Funding Availability Proposal:
1012 Linda Vista Avenue and 96 West El Camino Real
February 6, 2023
This memorandum will focus on two affordable housing proposals , one by Alta Housing at 1012 Linda Vista Avenue and another by Danco Communities at 96 West El Camino Real, and provides the following information for each project:
1. An overview of each applicant’s affordable housing and planning proposal.
2. An overview of relevant public meetings and feedback.
3. Sources of funding.
Additionally, Attachments 1 and 2 provide project-specific details for each development.
I. ALTA HOUSING—1012 LINDA VISTA AVENUE/1110 TERRA BELLA AVENUE
At 1012 Linda Vista Avenue/1110 Terra Bella Avenue, Alta Housing is proposing a seven - story, 70 -unit development with 69 affordable units for households with incomes up to 60% of the area median income (AMI) and one manager’s unit. The proposed unit mix includes 16 studio units, 15 one -bedroom units, 20 two -bedroom units, and 19 three - bedroom units (including one three -bedroom manager’s unit). The proposed project density is 99 dwelling units per acre.
The proposed project is located on the northwest corner of Linda Vista Avenue and Terra Bella Avenue. On January 24, 2023, Council approved a General Plan Map Amendment from General Industrial to High-Density Residential, rezoning from MM to R4, and a Zoning Text Amendment to reduce the minimum lot size requirement for R4 zoning. The zoning will be in effect 30 days after the second reading (expected on February 14, 2023). These land use amendments will allow a project density of up to 80 dwelling units per acre on the site.
The project will be reviewed pursuant to Senate Bill (SB) 35, which does not require any discretionary permit, such as a use permit or design review. Additionally, it is not subject to environmental review pursuant to the California Environmental Quality Act (CEQA).
The density for the 70-unit project is 99 dwelling units per acre, which includes a 23% State Density Bonus Request ( 13 additional units) beyond the base density of 80 units per acre (57 total u nits) permitted under the High -Density Residential General Plan Land Use Designation and R4 zoning noted above.
Consideration of Alta Housing Notice of Funding Availability Proposal:
1012 Linda Vista Avenue and 96 West El Camino Real
February 6, 2023
State Density Bonus Law allows an applicant to request unlimited development standard waivers and up to four concessions, depending on the e xtent of project affordability. The applicant request includes both development waivers and concessions, as noted below.
Development Waivers/Reductions Development Concessions
1. Floor Area Ratio (FAR) 1. Parking
2. Building Height 2. Private Open Space
3. Side Setback (West Property Line)
4. Street Side Setback (along Linda Vista
Avenue)
5. Heritage Tree Replacements
Additional information related to each waiver and concession request is provided in Attachment 1.
Project Design
The seven-story building utilizes a modern architecture style, incorporating two levels of aboveground podium parking into the building. Along street frontages, the parking levels are wrapped by useable building area, including two residential units, on -site staff offices, common amenity rooms, and enclosed utility rooms. The third-level courtyard provides the primary common outdoor space for the project with a play area for children, a dining area, abundant landscaping , and seating areas. Other interior amenity spaces include a combined laundry with resident lounge, bicycle room, office spaces for staff, and a community room and dedicated youth room that both open to the third-level podium courtyard.
The project is designed to promote a welcoming corne r at the intersection of Linda Vista Avenue and Terra Bella Avenue. The vehicle entrance to the site and parking garage levels is oriented toward the northerly property line, with access from Linda Vista Avenue near the north property line and as far as possible from the primary building corner.
Consideration of Alta Housing Notice of Funding Availability Proposal:
1012 Linda Vista Avenue and 96 West El Camino Real
February 6, 2023
Figure 1: Project Site Plan
Figure 2: Project Site Looking Northwest from Linda Vista and Terra Bella Avenues
Consideration of Alta Housing Notice of Funding Availability Proposal:
1012 Linda Vista Avenue and 96 West El Camino Real
February 6, 2023
The applicant has received early multi-departmental feedback on the project site plan and building design and has begun to address some of this feedback in the plans. The current plans also show recently proposed design modifications , including the ground floor, building base and entrance treatment , and building massing/facade. Additional project design information can be found in Attachment 1.
Staff has identified the following areas for further design refinement, prior to the SB 35 application submittal:
• Creating a more engaging and comfortable streetscape design.
• Adding additional trees.
• Incorporating an additional material while maintaining the color palette.
• Refining key building accents to provide a more integrated building design.
Staff will continue to work with the a pplicant team to refine these key project details in a cost-responsive manner.
Public Meetings
Alta Housing hosted a neighborhood meeting on January 19, 2023. Residents within a 1,200 square foot radius from the project site were noticed by mail and encouraged to attend to ask questions and provide input. No member of the public attended the meeting.
Project Financing
The project will utilize Federal, State, and County funding sources. A complete list of the anticipated permanent sources of funding is included below. Alta Housing is requesting $10 million from the City of Mountain View. This project will fall under the Measure A Memorandum of Understanding the City has with the County of Santa Clara. Given that the City contribution is anticipated to be larger than the County contribution, the City is anticipated to be the owner of the site.
Consideration of Alta Housing Notice of Funding Availability Proposal:
1012 Linda Vista Avenue and 96 West El Camino Real
February 6, 2023
Anticipated Permanent Sources of Funds
Source Amount
Bank Loan $ 5,524,000
County of Santa Clara 9,000,000
City of Mountain View 10,000,000
HCD Multifamily Housing Program (MHP) 11,905,225
HCD Infill Infrastructure Grant (IIG) 1,000,000
Tax Credit Equity 42,071,848
Other Sources 6,562,833
Total Permanent Source of Funds $86,063,906
II. DANCO COMMUNITIES—96 WEST EL CAMINO REAL
At 96 W est El Camino Real, Danco is proposing a six -story, 79 -unit development with 78 affordable units for households with incomes up to 60% of the area median income (AMI) and one manager’s unit on a 1.15 -acre site. The project is located on the northeast corner of West El Camino Real and Montgomery Street in the El Camino Real Precise Plan (ECRPP).
The applicant intends to submit the project pursuant to California Assembly Bill (AB) 2162, which allows eligible affordable housing projects to undergo streamlined ministerial review.
It will not be reviewed by the Development Review Committee, will not be decided upon at any public hearing body, and is not subject to environmental review pursuant to CEQA.
The base density allowed on the site is 57 dwelling units per acre. The project proposes a density of approximately 69 dwelling units per acre, which includes a n 18% State Density Bonus request (12 additional units) beyond the base density permitted by the Mixed -Use Corridor General Plan Land Use Designation and ECRPP. The State Den sity Bonus Law allows an applicant to request unlimited development standard waivers and up to four concessions, depending on the extent of project affordability. The applicant request includes both development waivers and concessions, as discussed below.
Development Waivers/Reductions Development Concessions
1. Increased Height 1. Reduced Parking
2. Sensitive Residential Transition—Increased
Wall Plate Height
3. Projections above the Third Floor
Consideration of Alta Housing Notice of Funding Availability Proposal:
1012 Linda Vista Avenue and 96 West El Camino Real
February 6, 2023
Additional information related to each waiver and concession request is provided in Attachment 2.
Project Design
The project proposes a six -story, approximately 64’ tall apartment complex, which steps down to four stories at the north and east elevations to provide appropriate transition to adjacent residential uses. The site features robust landscaping and various on-site resident amenities.
Figure 4: Site Plan
The building design features a contemporary architectural style with incorporation of traditional residential materials and roof forms to balance the project’s appearance along the more urban El Camino Real frontage and surrounding residential neighborhood areas.
Consideration of Alta Housing Notice of Funding Availability Proposal:
1012 Linda Vista Avenue and 96 West El Camino Real
February 6, 2023
Figure 5: Project Site Looking Southeast from Montgomery Street and El Camino Real
The applicant has been successful in addressing a substantial amount of prior multi- departmental feedback into the project plans, including staff design recommendations.
City staff is generally supportive of the project design and will continue to work with the applicant team to refine key project details in a cost-responsive manner. Additional project design information can be found in Attachment 2.
Public Meetings
Danco Communities hosted a neighborhood meeting on January 17, 2023. Residents within a 1,200 square foot radius from the project site were noticed by mail and encouraged to attend to ask questions and provide input. A summary of the feedback provided is below with staff comments in italics.
Consideration of Alta Housing Notice of Funding Availability Proposal:
1012 Linda Vista Avenue and 96 West El Camino Real
February 6, 2023
Question Staff Response
Are there balconies facing the preschool? No, all of the outdoor areas are at grade level.
Who will maintain Montgomery Street, a
private road alongside the project?
The developer will maintain the frontage of
their property to the center of the road.
Is there any commercial space on the
ground floor facing El Camino Real?
No, the ground floor will have a lobby
accessible to residents and guests.
Will the property have bicycle storage? Yes, the project will have 104 bicycle storage spaces: 96 secure spaces for
residents and eight spaces for guests.
How many units and parking spaces will
there be?
The project has one manager’s unit and
79 affordable units. There will be
54 parking spaces, with eight spaces for
guests.
Will this project accept Section 8 housing
vouchers, and will the units serve low-
income residents?
All the units are income restricted to
households earning up to 60% AMI,
including households with vouchers.
Will there be a resident services staff
on-site for services for the residents?
There will be resident services staff on-site.
Project Financing
The project will utilize Federal, State, and County funding sources. A complete list of the anticipated permanent sources of funding is below. Danco is requesting $8 million from the City of Mountain View and $6,894,000 from the County of Santa Clara. This project will fall under the Memorandum of Understanding the City has with the County of Santa Clara.
Given that the City contribution is anticipated to be larger than the County contribution, the City is anticipated to be the owner of the site.
Consideration of Alta Housing Notice of Funding Availability Proposal:
1012 Linda Vista Avenue and 96 West El Camino Real
February 6, 2023
Anticipated Permanent Sources of Funds
Source Amount
Bank Loan $15,151,494
County of Santa Clara 6,984,000
City of Mountain View 8,000,000
HCD Multifamily Housing Program (MHP) or IIG 17,451,750 Tax Credit Equity 29,218,461
Other Sources 2,000,000
Total Permanent Source of Funds $78,715,705
III. NOFA EVALUATION AND FUNDING CONSIDERATIONS
The affordable housing proposals at both 1012 Linda Vista Avenue and 96 West El Camino Real were evaluated based on project goals and housing priorities outlined in the City’s NOFA application. The priorities are a guide to the types of projects the City is especially interested in funding. Staff’s review of the proposal determined that both projects provide the City with units that are a high priority for the City, including:
• Units at the deepest affordability levels, which are the most challenging to finance but are critically needed. This includes units for households earning less than 30% AMI or in need of supportive housing, such as Rapid Rehousing (RRH) and Permanent Supportive Housing (PSH) units, both of which are intended for households experiencing homelessness. There are approximately 60 of these types of units in the City currently, but the need is significant, especially to serve households at risk of or experiencing homelessness. As described further in Attachments 1 and 2, the Alta Housing proposal includes 18 RRH units as well as units for households earning up to 30% AMI, and the Danco proposal includes 20 PSH units as well as units for households earning up to 30% AMI. NOTE: Each development will also maintain a mix of incomes that go above this income level.
• Two- and three -bedroom units for larger fam ilies. Much of the City’s existing affordable housing stock is studios and one-bedrooms.
Staff also considers each NOFA project against the City’s current funding capacity for affordable housing projects as well as anticipated expenditures for affordable housing and recommends the level of support we can provide to each development. At the August 30, Consideration of Alta Housing Notice of Funding Availability Proposal:
1012 Linda Vista Avenue and 96 West El Camino Real
February 6, 2023
2022 Study Session, Council directed staff to prioritize affordable housing funding as follows:
• Existing pipeline projects.
• RFQ/RFP projects for City-owned properties.
• Projects that address the City’s Housing Element and/or efforts to affirmatively further fair housing.
Both projects were in the existing pipeline at the time of this direction and were included as part of the esti mated near-term funding needed for affordable housing. As such, both projects have been prioritized for funding, pending evaluation by staff, the NOFA Review Committee, and Council.
IV. TENANT SELECTION
The City of Mountain View requires that, to the extent feasible, given legal and funding considerations, households that live and/or work in Mountain View be given preference for units. Several of the units in these developments have restrictions that require other means of tenant selection. For example, all referrals for supportive housing units (PSH and RRH units alike) will come directly from the Santa Clara County Continuum of Care’s (CoC) Coordinated Entry System (CES), which is managed by the County ’s Office of Supportive Housing. There are a significant number of Mountain View residents on this list as extensive outreach has been done to the unhoused community in Mountain View. Each developer is required to submit an affirmative marketing plan to ensure outreach and advertising to households that may qualify for affordable units, including via the City’s interest list, and to school districts, neighborhood groups, service providers, and public agencies.
RECOMMENDATION
The proposed developments at 1012 Linda Vista Avenue and 96 West El Camino Real will provide a combined 149 units of affordable housing for households at or below 60% AMI. Staff recommends the NOFA Review Committee forward the following funding proposals to the City Council for review and reserve the following loan amounts:
• 1012 Linda Vista Avenue: $10 million, of which $1.3 million will be used for approved predevelopment activities.
Consideration of Alta Housing Notice of Funding Availability Proposal:
1012 Linda Vista Avenue and 96 West El Camino Real
February 6, 2023
• 96 W est El Camino Real: $8 million, of which $1.3 mil lion will be used for approved predevelopment activities.
DT-BW-EK-MH-T-WC-AS/2/CDD
845-02-06-23M
202831
Attachments: 1. Project Summary: 1012 Linda Vista Avenue
2. Project Summary: 96 West El Camino Real
3. Cost Analysis Comparison for NOFA Projects