CED CommitteeSeptember 10, 2024
AGENDA REPORT TO:Jestin D. JohnsonFROM:Emily WeinsteinCity Administrator DirectorSUBJECT:Affordable Housing Funding ProgramsAdvance Funding AuthorizationsDATE:August 12, 2024City Administrator Approval Date:RECOMMENDATIONStaff Recommends That The City Council Allocate Funds From Measure U Housing Bond And Other Non-bond Funds In A Total Amount Not To Exceed $113,400,039 To Fund New Construction Of Multifamily Rental Affordable Housing Projects, Homekey and Rapid Response Homeless Housing, Acquisition and Conversion to Affordable Housing And Rehabilitation Of The Existing Affordable Housing, And Authorizing The City Administrator To Make Development Loans Under The New Construction Of Multifamily Rental Affordable Housing Program, Rapid Response Homeless Housing, Acquisition and Conversion to Affordable Housing And Rehabilitation Of The Existing Affordable Housing Without Returning To Council, Contingent On Funding Availability.EXECUTIVE SUMMARYThe proposed resolution would authorize up to $113,400,039 of City of Oakland (City) financing for loans to affordable housing developments identified through the Housing le housing funding processes: - New Construction of Affordable Multifamily Rental Housing Notice of FundingAvailability (NC NOFA)- Homekey / Rapid Response Homeless Housing (R2H2) Request for Proposals(Homekey/R2H2 RFP)- Rehabilitation and Preservation of Existing Affordable Housing NOFA (RehabNOFA)- Acquisition and Conversion to Affordable Housing (ACAH)These funding commitments would be enabled by $113,400,039 of existing andanticipated funding sources without returning to City Council (Council) for additional approval. Funding would primarily come from Measure U bond funds for affordable housing, and full funding sources are delineated in the Fiscal Impact section below. In
Jestin D. Johnson, City AdministratorSubject: Affordable Housing Funding Programs Advance Funding Authorizations Date: August 12, 2024 Page 2 CED Committee September 10, 2024
order to advance equity among similarly situated affordable housing projects desiring to meet the same upcoming State funding deadlines, HCDD is seeking advance authorization to make commitments to projects that will be well-established NOFA/RFP processes guidelines. HCDD staff will share results from the NOFAs with Council after funding commitments have been made as well as establish an annual report to Council of all selected projects, locations, income levels served, populations served, and development status to ensure transparency and accountability. When the City has federal, state and local funding sources available to allocate to affordable housing programs and projects, HCDD solicits applications for project funding on a competitive basis. These competitive processes, typically prioritize developments that serve extremely low income households (and particularly those experiencing homelessness), that leverage outside resources (including highly competitive state and federal funding sources), that are ready to start construction, that are sustainable and promote equitable outcomes for Oakland residents, workers and businesses, and that are near transit and neighborhood amenities, among other criteria. /RFP processes in order to meet State funding deadlines and increase/preserve the supply of affordable housing through new construction, acquisition/conversion, and rehabilitation activities. BACKGROUND / LEGISLATIVE HISTORY 2023-2027 Strategic Action Plan (2023-2027 SAP), HCDD has identified program priorities for addressing housing affordability with a directed towards new construction (production) or affordable housing, and 14% will be directed to acquisition and rehabilitation of affordable units (preservation). The four HCDD programs that award funding through the NOFA/RFP processes are the New Construction NOFA, the Homekey and Rapid Response Homeless Housing RFP, Acquisition and Conversion to Affordable Housing (ACAH), and the Rehabilitation of existing Affordable Housing NOFA. Through these processes, HCDD staff solicits applications for funding, scores, ranks and awards funding for new construction projects, quick-build housing for homeless exits, and the rehabilitation and preservation of existing affordable housing. On June 18, 2024, pursuant to City Council Resolution No. 90308 C.M.S., Council approved a streamlined process for the ACAH program allowing for awards to projects meeting HCDD established criteria to be made on a continuous rolling basis in partnership with the Housing Accelerator Fund. New Construction Notice of Funding Availability On March 21, 2023, June 28, 2023, and February 20, 2024, Council adopted Resolutions No. 89646 C.M.S., No. 89809 C.M.S. and No. 90118 C.M.S., which Jestin D. Johnson, City AdministratorSubject: Affordable Housing Funding Programs Advance Funding Authorizations Date: August 12, 2024 Page 3 CED Committee September 10, 2024
New Construction NOFA as well as the ability to fund down the pipeline of selected projects as funding becomes available. Traditionally, the New Construction NOFA is the primary avenue by which HCDD distributes funding for newly built affordable housing. By the time the last New Construction NOFA application window closed on April 3, 2023, the City received a total of $193,988,748 in requested funding for 16 development projects. Together, these developments would provide 1,147 units of affordable housing, including 413 units of Permanent Supportive Housing (PSH) for people exiting homelessness. An overview of applicants for the 2023 New Construction NOFA, as well as awards made to date, is provided in Attachment A. Through outreach to Affordable Housing Developers, HCDD has determined that because the NOFA is vastly oversubscribed, the creation of a pipeline of projects that meet threshold qualifications is needed to maintain a steadier stream of affordable housing developments moving towards construction start. This allows HCDD to issue New Construction NOFAs on an approximately biennial basis and fund down an established pipeline as additional funds become available while periodically refreshing the development pipeline. The ability to allocate down the pipeline was responsible for the award of $11.9M to Lake Merritt Bart Senior Housing in February 2024, which will allow that development to begin construction this month. This process proves more efficient for developers and staff and allows the expedited deployment of housing funds as they become available through State and other funding programs. Applications must meet minimum threshold standards to become eligible for funding, including the engagement of community constituents, evidence of site control, commitment to serving Extremely Low-Income residents, developer and property management experience, and having a viable financial plan in place demonstrating City funds will be used to leverage other yet-to-be-committed County, State, and Federal funds, private financing, and grant funds. Each project funded under the New Construction NOFA will be required to provide a minimum of 20% of the units targeted to households with incomes at or below 30% of Area Median Income (AMI). Additional points can be awarded for exceeding this threshold. This income band is targeted at AMI levels either to provide housing for unhoused Oaklanders or address displacement pressures on some of Oaklands most vulnerable renters. For developments setting aside units for Permanent Supportive Housing, the developer and property manager must incorporate tenant selection criteria consistent with Housing First principles, with the intent of reducing barriers to housing for those most in need as well as a Supportive Service plan to serve those residents. All project marketing and management plans are subject to review and approval by City staff. Additional Jestin D. Johnson, City AdministratorSubject: Affordable Housing Funding Programs Advance Funding Authorizations Date: August 12, 2024 Page 4 CED Committee September 10, 2024
demographic reporting data for residents in completed developments is being required from all program applicants going forward as tracking this data ensures effective outcomes and allows HCDD to report on a program-wide basis. Additional scoring criteria for the 2024 New Construction NOFA include the following: readiness of new affordable rental housing developments to commence construction; projects that are competitive for State affordable housing resources, including but not limited to tax-exempt bonds allocated by the California Debt Limit Allocation Committee team (to be defined in the NOFA as an entity that has developed, owned, or operated at least one (1) but not more than four (4) completed Affordable Rental Housing Developments that are equivalent to the proposed Affordable Rental Housing Development in size, scale, level of amenities, and occupancy); housing located on publicly-owned land, housing located in neighborhoods subject to displacement pressures, and housing targeting people experiencing homelessness including Permanent Supportive Housing projects. Homekey and Rapid Response Homeless Housing (R2H2) Program On March 29, 2023, the California Department of Housing and Community Development (CA HCD) issued a NOFA for the third round of its Homekey Program, making approximately $736 million in grant funding available within the 2022-2023 fiscal year to local public entities, including cities, counties, or other local public entities, to sustain and rapidly expand housing for persons experiencing homelessness or at-risk of homelessness, and who are, thereby, inherently impacted by or at increased risk for medical diseases or conditions due to the COVID-19 pandemic. A smaller allocation is expected for the Homekey Round 4 NOFA by the end of 2024 funded through voter approved CA Prop. 1. Homekey funds must be used to provide permanent or interim housing for individuals and families experiencing homelessness and affordability is restricted at or below 30% of AMI. The City issued a Homekey Round 3 RFP in October 2022, in anticipation of the March 29, 2023 State Homekey NOFA release date. Eleven applications were received. Of the five proposals that Round 3 program thresholds and priorities, three developments were awarded state funding and are anticipated to begin occupancy in early 2025. Homelessness has increased over 24% in Oakland between 2019 to 2022. The pace of increase slowed to 9% between 2022 and 20241, despite increased pressure after the 1 Alameda County 2022 and 2024 Preliminary Point-In-Time Count: https://public.tableau.com/app/profile/simtech.solutions/viz/AlamedaCountyPoint-in-TimeCountResultsSummary/PITTrends?publish=yes, and Jestin D. Johnson, City AdministratorSubject: Affordable Housing Funding Programs Advance Funding Authorizations Date: August 12, 2024 Page 5 CED Committee September 10, 2024
-era eviction moratorium ended in the Fall of 2023. The Homekey program presents an important and unique opportunity to address this crisis. The Rapid Response Homeless Housing (R2H2) Homekey program. R2H2 allows the City to respond to the homelessness crisis after the State winds down the Homekey program by establishing a program funded within the City of Oakland. This program also allows the City to directly fund projects that either do not need Homekey funds or are not competitive for the State program. In anticipation of a possible fourth round of Homekey funding, staff issued an RFP to seek proposals for permanent and/or interim housing for individuals and households experiencing homelessness in December of 2023.The City will co-apply for this potential source of funding with top scoring proposals from the RFP. In addition, the RFP process established a vehicle for the R2H2 program to launch simultaneously with the Homekey Round 4 RFP. Nineteen initial applications were received in response to the Homekey/R2H2 RFP, with projects in various states of readiness. Of the nineteen applications received in response to the Round 4 NOFA, nine applications met the City thresholds and were invited to submit a Full Application. Four are being considered for Homekey applications to the State upon release of the Homekey Round 4 NOFA, and three are under consideration for R2H2 funding only, one was awarded R2H2 funding on an expedited basis, and one application was withdrawn. Homekey Round 4/R2H2 developments in process will serve Transition Age Youth (TAY) experiencing homelessness, and the remaining five developments will serve individuals experiencing chronic homelessness. Attachment 2 highlight the sources of available funds, the current Homekey/R2H2 applications under review for funding allocation, the awarded application, and the full list of applicants as of August 2024. Rehabilitation of Existing Affordable Housing The City of Oakland has issued residual receipts loans to approximately 140 affordable housing developments over the past 40 years. In connection with the loans, since the ent to low, very low, extremely low, or moderate-income tenants. On April 16, 2024, pursuant to City Council Resolution No. 90178 C.M.S., the City Administrator was granted blanket authority to extend the terms of loans and regulatory agreements by up to fifty-five years as needed, and to modify agreement terms to mirror current City standards, which are updated periodically. https://public.tableau.com/app/profile/simtech.solutions/viz/AlamedaCountyPoint-in-TimeCountResultsSummary/PITTrends?publish=yes Jestin D. Johnson, City AdministratorSubject: Affordable Housing Funding Programs Advance Funding Authorizations Date: August 12, 2024 Page 6 CED Committee September 10, 2024
As noted at that Council meeting, any additional funding for projects will require approval by City Council. Although the City issued NOFAs for Rehabilitation of Existing Affordable Housing (Rehab NOFA) on a similar schedule to the New Construction NOFA starting around 15 years ago, the last Rehab NOFA was issued during FY2019-20 due to lack of ongoing funding for this program. Several of the rehabilitation awardees completed quickly, but the last two awardees were unable to secure competitive 4% tax credits. Those two awardees are re-tooling their rehabilitation plans for a modified rehabilitation scope of work and preparing to close their loans and begin renovations as of the writing of this report. Given an aging portfolio that will require costly building system improvements, City investment in maintaining quality affordable housing is needed. With Bond Measure U funds staff is proposing carving out funding to revive this program via issuance of a Rehab NOFA in early 2025and regulatory agreements are also extended, providing longer affordability to tenants, as well as improved living conditions. Larger scale rehabs can leverage tax-exempt bonds and tax credits to increase the scope of improvements and ensure property quality and tenant stability for the long-term. ACAH Program On June 18, 2024, pursuant to City Council Resolution No. 90308 C.M.S., City Council authorized the City Administrator to allocate $10 million of Measure U funds and authority to enter an unsecured loan with the Housing Accelerator Fund (HAF), a non-profit Community Development Financial Institution, to leverage private dollars from banks and philanthropists, and administer and fund acquisition and rehabilitation loans as part of the City's Acquisition and Conversion to Affordable Housing (ACAH) Program. This loan would be an unsecured, recourse obligation of the HAF with "first-loss" features for Oakland projects. Staff also received approval for the commitment $30 million of Measure U funds for take-out permanent financing of the acquisition and rehabilitation loans. In this report, staff proposes allocating reducing the allocation of take-out financing from $30 million to $20 million while the program changes are ramping up. The remaining $10 million will be initially allocated to the Homekey/R2H2 program. These actions will build upon and improve the City's established ACAH program and accelerate City anti-displacement efforts in low-income neighborhoods experiencing gentrification. Staff is currently working on the contract with the HAF for this program work and anticipates having an executed contract by the end of 2024. A description of the status of active ACAH developments is provided as Attachment C.
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Affordable Housing Production and Preservation Summary of Progress. Table 1 below provides a summary of the capital funding awards for the four programs from 2019 to present. Table 1: Five Year Summary of HCDD Competitive Capital Funding Awards, 2019-Present NOFA Round NOFA Release Date Capital Funding Awarded Measure U Bond Funds Other Sources 2019-20 New Construction NOFA August 2019 $14,683,000 $14,683,000 2019-20 Acquisition and Conversion to Affordable Housing (ACAH) all developer pool August 2019 $10,970,000 $10,970,000 2019-20 ACAH - community land trusts and limited equity cooperatives December 2019 $7,756,053 $7,756,053 2019-20 ACAH all project types December 2019 $16,250,000 $16,250,000 2020 New Construction Pipeline NOFA April 2020 $13,050,000 $13,050,000 2020-21 ACAH NOFA November 2020 $3,985,000 $3,985,000 2020-2021 Homekey August 2020 $7,255,239 $7,255,239 2021-2022 Homekey October 2021 $7,500,000 $7,500,000 202122 New Construction November 2021 $37,561,000 $37,561,000 2022-23 Homekey Round 3 October 2022 $15,805,151 $15,805,151 2022-2023 ACAH NOFA December 2022 $12,650,000 $12,650,000 2023 New Construction January 2023 $70,000,000 $50,000,000 $10,000,000 2023-24 Homekey Round 4/ R2H2 November 2023 $10,400,740* $10,400,740* 2023 Council Action: Mandela Transit Village (outside of NOFA in March) N/A $18,000,000 $18,000,000 2023-2024 NC NOFA Pipeline Awards February 2024 $22,000,000 $22,000,000 Total Funding Awarded 2019-2024 NOFA/RFP Cycle $267,866,183 $90,000,000 $167,866,183 Jestin D. Johnson, City AdministratorSubject: Affordable Housing Funding Programs Advance Funding Authorizations Date: August 12, 2024 Page 8 CED Committee September 10, 2024
* $10.4 million allocated for Homekey4/R2H2- application review for project awards is ongoing as of the date of this report. One R2H2 development, Covenant House, with 20 rooms for Transition Aged Youth exiting the foster care system, has received an award for $1.2 million under expedited review. The major source of funding from FY2023-24 onward is Bond Measure U Affordable Housing funds form the $350 million approved by voters in November 2022. A first tranche of $78 million in affordable housing funds was made available for FY2023-24, and Council approved budget authorization for another $130 million in bond funds in FY2024-25. On June 28, 2024, the City Council adopted the FY2024-25 Midcycle Budget, which assumed the receipt of one-undivided interest in the Coliseum Complex located at 7000 Coliseum Way (the -time revenue for the Coliseum Site was not received as outlined in the budget, the City Administrator is directed to initiate the contingency budget amendments which included the second issuance of Measure U bonds to be removed. Other funding sources made available include a mixture of Affordable Housing Impact Fees, Jobs Housing Impact Fees, Boomerang funding, HOME funding from the US Department of Housing and Urban Development, and program interest and income (mostly loan repayments from residual receipts). Although these sources remain important, as noted in the Fiscal Impact section, the $11.6 million in funding from all other capital affordable housing sources available in FY2024-25 is far less than the $130 million total made available in the second tranche of the Measure U bond. To date, three Measure U-funded developments have closed their loans and started construction, and a fourth is seeking to close as of the writing of this report. ANALYSIS AND POLICY ALTERNATIVES Analysis Although Measure U Bond funds have vastly improved HCDDneeds are immense. As noted below in the Fiscal Impact section, HCDDeffective affordable housing capital loan funding available for all programs for the remainder of FY2024-25 is approximately $73.1 million. That is less than half of what was requested in the 2023 NC NOFA round. Historically all programs (particularly the NC NOFA) have been oversubscribed for City funding through HCDD In the Spring 2023 NC NOFA, which featured a limit on the number of applications developers were permitted to submit, applicants submitted 16 applications for nearly $193 million in funding requests, and as of February 2024, HCD only had resources to fund $92 million towards those requests.
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The Spring 2022 NOFA cycle was even more constrained developers applied for $88.5 million, with $37.6 million eventually made available to awardees. In the Homekey Round 4/R2H2 RFP round, $10 million was set aside for development loans, and 19 applications have been received. With the eight applications that have been deemed ready to proceed for further consideration, capital funding requests total nearly $44.7 million. (Operating subsidy needs also far exceed the funding available, but operating funds are not the primary focus of this report.) Past ACAH and Rehab NOFAs more closely tracked available funding. On the ACAH front, this is due to difficulty timing market acquisitions with an annual funding round, and stakeholder outreach to participants has indicated that the move to the HAF funding model will significantly increase program demand. It has been five years since the last Rehab NOFA was issued, and there is significant interest in funding for deferred rehabilitation work in portfolio developments where reserves are insufficient to cover rehabilitation needs. Communicating City priorities through threshold and scoring criteria for all programs ensures that City funding goes to developments that are consistent with City priorities, including: depth of affordability, provision of PSH units, readiness to start construction, location, ability to leverage outside funding, financial feasibility, developer experience, and emerging developer support, and sustainability. Each NOFA/RFP has different focuses that balance the priorities outlined above. A pipeline approach to allocating funding ensures that new proposed developments will align with City priorities early on in the development process, rather than pursuing a development ultimately out of alignment with City goals. Developers typically need to be able to incorporate City priorities early on in their predevelopment process to wholistically address populations and income levels served, building design and project siting. The City can have greater influence over developments if our funding can be committed early on with predictability in the development process. This approach streamlines funding and allows for smoother alignment with the Statemany funding cycles. While an annual NOFA round with award recommendations worked relatively well 10-15 years ago when limited City sources, tax credits and s were the primary sources for affordable housing funding. The labyrinthine nature of the current funding climate does not CA HCD alone has dozens of active funding programs (with their own deadlines that shift annually), and formerly predictable, California Debt Limit Allocation Committee (CDLAC) and California Tax Credit Allocation Committee (TCAC) have been volatile and prone to changes in cycles that are now difficult to predict for developers and staff.
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The modified pipeline approach allows funding to be deployed on a constant basis if new funds are released, or if funding is recaptured from non-performing sponsors, and allows for periodically refreshing the applicant pool. Policy Alternative: If Council declines to approve the authorization of funding, housing dollars will not be deployed in a timely ycles at the State will occur. Affordable housing developments require a local source of subsidy and would not be able to compete for State funding resources if the funding authorization and NOFA/RFP process is delayed. Staff does not recommend that approach as this would significantly slow development timelines in an era where nimbleness is greatly needed to provide developers greater ability to leverage State and other funding programs for their planned affordable housing developments. Pipeline Funding Approach Traditionally, Oakland HCD awards funding through NOFA/RFP processes that require developers to submit new applications every time a NOFA is issued. This requires a great amount of time for both HCD staff and its developer partners for both preparation and application review. However, given best practices in the field, the robust number of projects in the NOFA pipeline, and our desire to improve both staff and developer partner efficiencies, HCDD staff has revamped its practices to provide greater room for funding projects in the existing pipeline using a combination of factors including readiness, cost per unit, and the ability to leverage outside funding within an 18-24 month period, and then refreshing the pipeline with another NOFA cycle. Applicants that do not receive a funding award during a NOFA pipeline cycle will need to submit a new application for funding when a new NOFA is released. Awardees in a funding cycle will be required to demonstrate progress in meeting the terms of their commitment letters as new funding cycles approach, and may be required to re-apply for funding if they are not making sufficient progress in moving towards construction. HCDDalready propelled numerous developments to proceed in the development process, as described in Table 2.
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Table 2: Construction Status of Select 2023 New Construction NOFA Pipeline Status Project Council District Total Units PSH Units Notes In construction Friendship Senior Housing 3 49 10 Started construction in September 2023 In construction West Grand & Brush 3 59 30 Re-started construction in Fall 2023, after a neighboring building collapsed onto the site during 2023storms and halted construction In construction 3050 International* 5 75 31 Received 4% tax credit award in August 2023 and started construction in February 2024 In construction East 12th Street Phase 1* 2 90 23 Received 4% tax credit award in August 2023 and started construction in March 2024 In construction Longfellow Corner* 1 76 20 Awarded 9% tax credits in fall 2023,started construction in June 2024 *Starting Construction Lake Merritt BART Senior Housing** 2 74 44 Received 4% tax awards in December 2023 City provided additional gap funding in Spring 2024. Starting construction in September 2024. Total 423 158 Units to be under construction through Q3 of 2024 *3050 International, East 12th Street Phase 1, and Longfellow Corner are all on City-owned land, demonstrating a strong City commitment to leverage its resources, as feasible, for affordable housing. **The Lake Merritt BART Senior site is part of a transit-oriented development plan on land owned by the Bay Area Rapid Transit (BART) agency at their Lake Merritt BART station. Attachment D . HCDD will release the New Construction NOFA on September 2024, and make awards in early January 2025. Homekey projects will seek separate Council approvals to apply for State funding. R2H2 developments may be awarded from the existing applicant list, pending availability of capital and operating funding. The Rehab NOFA is anticipated to open in the first quarter of 2025, with awards made by mid-year 2025. ACAH funds have already been approved to be disbursed through the streamlined process using the Housing Accelerator Fund, and contracting is underway to put that program improvement into effect.
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Annual Reporting to Council With the change in procedure to pipeline funding processes for HCDDhousing programs, staff proposes reporting to council annually in alignment with the Ahousing unit production, starting in 2025. This annual informational report would cover: projects awarded, income restriction targets, populations served (e.g. homeless, transitional aged youth, family, senior), and development status by council district. Staff is requiring more regular reporting by awardees on the demographics of residents, tenure, prior city of residence, family size and other data in City-funded developments. All of this information will be presented in an annual comprehensive report of affordable housing production and preservation activities to be presented alongside the APR. This consistent reporting to Council will provide more information on goals than can be provided in individual project approval actions. FISCAL IMPACT Pursuant with the goals of HCDD-2027 SAP, staff developed a plan to allocate capital funding available for affordable housing to the four programs described in this report as follows: NC NOFA and Homekey/R2H2 RFP: 76% Per the 2023-2027 SAP, this funding is to be split between 39% for PSH units in the Homekey/R2H2 program and PSH units in NC NOFA projects, and 37% low income units serving 30-80% of AMI. Rehab NOFA: 7% ACAH: 14% Other Housing Programs: 2% (not included in this report, but including costs such as site maintenance, emergency repairs, etc.) In any given year, funding percentages might shift housing needs and/or State funding opportunities. For example, staff shifted funding toward New Construction and Homekey/R2H2 in 2023 to secure State funding for developments with a heavy PSH component that were construction-ready, and advanced funding ACAH in 2024 to start up the HAF program for ACAH deals. Approximately $141.6 million in capital funding resources for affordable housing programs -25 Midcycle Budget- $130 million from the second affordable housing tranche of Measure U Bond Funds and $11.72 million of non-bond capital sources. After subtracting a 5% administrative allowance for the Measure U Bond Funds ($6.5 million) and FY 2024-25 awards made in Spring 2024 for the New Construction NOFA Jestin D. Johnson, City AdministratorSubject: Affordable Housing Funding Programs Advance Funding Authorizations Date: August 12, 2024 Page 13 CED Committee September 10, 2024
effective funding available for the FY 2024-25 NOFA is approximately $113.4 million. HCDD proposes to allocate the remaining $113.4 million as follows: - $55,279,608 New Construction NOFA - $21 million Homekey/R2H2 - $7 million Rehab NOFA - $30 million ACAH (Note: Up to $40 million was approved for ACAH in June 2024) These program funding allocations are subject to change to allow staff to maximize leveraging of City resources, and/or ability to move ready developments into construction. Table 3 below summarizes capital funding available in FY2024-25. In collaboration with the Oakland Housing Authority (OHA), staff proposes to include a funding set-aside of up to $15 million within the NC NOFA for developments substantially funded by the Oakland Housing Authority (such as being on OHA-owned land) or owned directly by OHA or its subsidiaries. Oakland Housing Authority will provide up to $10 million in operating, pre-development, capital assistance and/or Project-based Vouchers or other operating assistance to developments selected including the Homekey/R2H2 RFP, based upon OHA criteria as provided in the NOFA. This collaborative approach allows City capital funding to be deployed where needed and for OHA sources to supplement the lack of operating subsidy. Table 3. FY 2024-2025 Revenue Available Capital Sources Fund Capital Funding Available FY2024-25 1870 - Affordable Housing Trust Fund Not Available 1885 - 2011A-T Subordinated Housing $748,351 2109 - HUD-Home $2,306,696 1871 or 2423 - Jobs Housing Impact Fee Fund $65,000 1872 or 2424 - Affordable Housing Impact Fee Fund $2,800,384 2830 - Low and Moderate Income Housing Asset Fund $5,800,000 5343 Tranche 2 Measure U: Affordable Housing GOB Series 2023A-2 (Taxable) $101,679,608* HCD's Usage & Source $113,400,039 * $130,189,061 in second tranche Measure U funding, minus 5% administrative allowance and $22 million committed to NC NOFA in Spring 2024.
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carryforward process or programmed through FY2024-25 budget process and contingent upon availability. 1) Low and Moderate Income Housing Asset Fund (Fund 2830, Project 1000388, Org 89929). The Low and Moderate Income Housing Asset Fund is a fund required under the Redevelopment Dissolution law to hold funds generated from housing assets (such as land sales or loan repayments) transferred to the City from the former Redevelopment Agency when the Agency dissolved. The current funding is from loan repayments received by the City from existing rental or ownership properties and from redevelopment funded Mortgage Assistance Loans. 2) Affordable Housing Trust Fund (AHTF) (Fund 1870, 1871, 1872, 2423, 2424) is made up of the following sources: a. Jobs/Housing Impact Fees (JHIF). (Project 1001664, Org 89929) The Jobs/Housing Impact Fee is assessed on construction of buildings for office and warehouse/distribution uses per Ordinance No. 12242 codified as Chapter 15.68 of the Oakland Municipal Code. b. Affordable Housing Impact Fees (AHIF). (Project 1001667, Org 89929) The Affordable Housing Impact Fee is assessed on construction of new market-rate housing units including live/work and work/live units per Chapter 15.72 of the Oakland Municipal Code. c. Former Redevelopment Funds (Project 1000386, Org 89929) are former property tax increment financing payments that are received by the City and specifically designated for affordable housing. In 2013, after the dissolution of redevelopment, the City committed to setting aside 25 percent of the funds distributed to the City as a taxing entity under the Redevelopment dissolution and deposit them into the Affordable Housing Trust Fund. 3) 2011A-T Subordinated Housing (Fund 1885): Interest earnings from an older affordable housing bond fund, available for deployment for affordable housing loans. 4) HOME funds (Fund 2109). (HOME Project 1000394, HOME-ARP Project 1006277, both Org 89929) Each year, the City receives an entitlement grant from the HUD HOME Investment Partnerships Program, as well as a one-time infusion of HOMEARP funds through the federal American Rescue Plan. FY 2024-25 HUD HOME funds are budgeted and available for this NOFA. 5) Measure U Bond Tranche 2 (Fund 5343). Up to $130 million from the second affordable housing tranche, contingent on the issuance and sale of Measure U Bonds. The FY2024-25 Midcycle Budget assumed the receipt of one-time revenues of $63 million from the Coliseum Site. If the one-time revenue was not received as outlined in Jestin D. Johnson, City AdministratorSubject: Affordable Housing Funding Programs Advance Funding Authorizations Date: August 12, 2024 Page 15 CED Committee September 10, 2024
the budget, the City Administrator is directed to initiate the contingency budget amendments which included the second issuance of Measure U bonds to be removed. Note: that the pipeline approach positions Oakland affordable housing developments well to propel additional developments along should future affordable housing funding become available. Staff will seek additional Council authority in that event, but as noted in the 2023-2027 SAP, any funds received during the plan cycle are projected to be allocated to the above programs in roughly the same proportions as the Measure U allocations. PUBLIC OUTREACH / INTEREST Oakland HCD staff conducts extensive and on-going outreach to interested parties from a mailing list that includes developers, affordable housing advocates, architects, and contractors whenever NOFAs/RFPs are released, as well as periodic outreach to discuss program parameters, development thresholds and scoring. Staff confers regularly with organizations such as the East Bay Housing Organizations, Oakland Property Acquisition Collaborative, and Alameda County and the Oakland Housing Authority regarding coordination on affordable housing priorities and PSH funding. In addition, staff has conducted extensive public outreach to community organizations and town halls with residents Strategic Plan and future funding planning processes. These public meetings focused on a review of housing affordability needs in Oakland versus the resources available to priorities for capital resources, which focus on reducing homelessness to the extent on operating are available, on serving low and extremely low income tenants, and preventing displacement. COORDINATION This report has been reviewed by the Office of the City Attorney and by the Budget Bureau. For this report, HCD staff consulted with the City Attorney to ensure legality of funding commitment resolutions. The Department of Finance was consulted to confirm funding amounts. In respect to the New Construction NOFA and the award of funding commitments to projects, Planning and Building Department staff will coordinate CEQA determinations, planning and zoning conformity, and to identify possible barriers to development. The Department of Workplace and Employment Standards is consulted during NOFA preparation and involved in review and approvals through project construction to confirm fair and equitable involvement of Oakland businesses, workers, and residents in the development of these projects.
Jestin D. Johnson, City AdministratorSubject: Affordable Housing Funding Programs Advance Funding Authorizations Date: August 12, 2024 Page 16 CED Committee September 10, 2024
SUSTAINABLE OPPORTUNITIES of sustainability in the following ways: Economic: These projects will generate construction, professional services, and ongoing property management jobs in Oakland. Providing families with affordable housing helps provide financial stability for low and very low-income households which could free some household income to be spent on other goods and services in Oakland. Providing units with supportive services for unhoused Oaklanders helps residents experiencing homelessness stabilize their health and housing. Also, providing and preserving viable housing creates activity on underutilized parcels which could stimulate demand for goods and services in Oakland. Environmental: By constructing more infill units, pipeline projects will reduce the pressure to build on suburban or rural land far. The developers encourage contractors to use sustainable building techniques, including energy-efficient design, use of recycled building materials, and water-conserving fixtures and landscaping. Proposed projects are near public transit which enables residents to reduce dependency on automobiles and further reduce any adverse environmental impacts of development. Funding awards are made partially based on sustainability criteria. Race & Equity: directly -2027 Strategic Action Plan (SAP) which was created using the SAP, Oakland HCD currently prioritizes the development of PSH to the maximum extent possible in order to increase the number of homeless exits available. As overrepresented in its unhoused demographic (roughly 59% of the total), providing deeply affordable housing especially PSH as quickly and efficiently as possible is critical in efforts to reduce racial disparities in homelessness. consideration are also in alignment with for ending homelessness which forecasts that Oakland will need to provide 7,097 units of PSH between 2023 and 2027. Allocation (RHNA) requires Oakland to supply 10,261 units affordable to low, very low, and extremely low- overall housing stock and help Oakland residents and workers avoid displacement. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) Under the California Environmental Quality Act (CEQA), the City is required to review possible environmental impacts of all projects prior to a definitive commitment of funding, unless the project is exempt from CEQA review. All projects funded through Jestin D. Johnson, City AdministratorSubject: Affordable Housing Funding Programs Advance Funding Authorizations Date: August 12, 2024 Page 17 CED Committee September 10, 2024
this item will have a complete environmental review or be determined exempt from CEQA review prior to the award of funds. ACTION REQUESTED OF THE CITY COUNCIL Staff Recommends That The City Council Adopt A Resolution To Allocate Funds From Measure U Housing Bond And Other Non-bond Funds In A Total Amount Not To Exceed $113,400,039 To Fund New Construction Of Multifamily Rental Affordable Housing Projects, Homekey and Rapid Response Homeless Housing, Acquisition and Conversion to Affordable Housing And Rehabilitation Of The Existing Affordable Housing, And Authorizing The City Administrator To Make Development Loans Under The New Construction Of Multifamily Rental Affordable Housing Program, Rapid Response Homeless Housing, Acquisition and Conversion to Affordable Housing And Rehabilitation Of The Existing Affordable Housing Without Returning To Council, Contingent On Funding Availability. For questions regarding this report, please contact Christia Katz Mulvey, Housing Development Services Manager, at 510-332-4461. Respectfully submitted, EMILY WEINSTEIN Director, Housing and Community Development Department Reviewed by: Ali Gaylord, Deputy Director Prepared by: Christia Katz Mulvey, Housing Development Services Manager Housing Development Services Attachments (4): Attachment A. 2023 New Construction NOFA Funding Applications and Awards Attachment B. Homekey/R2H2 2024 August 2024 Proposals Submitted Summary and Currently Active Developments Attachment C. ACAH Development Status List Attachment D. Development Status of Oakland-Funded Affordable Housing Developments, 2019 - Present Previous NOFA Funding Award#1Satellite Affordable Housing Associates (SAHA) and Native American Health Center (NAHC) 3050 International 3050 International Blvd 5 75 31 $5,000,000 $24,200,000 $24,200,000 $29,200,000Awarded 4% tax credits in August 2023, starting construction in early 2024.Impact fees, CA LHTF (admin'd by Oakland), Meas U#2Related Companies of California Agnes Memorial Senior Apartments 2372 International Blvd 2 59 18 $4,500,000 $7,300,000 $7,300,000 $11,800,000Applying for 2023 SuperNOFA funds and seeking 9% Tax Credits in August 2024. Boomerang, LMIAF, HOME, Measure U, CA LHTF#3Allied Housing, Inc.West Grand & Brush2201 Brush Street & 760 22nd Street 3 59 30 $5,665,000 $2,000,000 $2,000,000 $7,665,000Re-started construction fall 2023 after severe weather impacts. Impact fees, LMIAF, Meas KK#4Community Housing Development Corporation of North RichmondFriendship Senior Housing 1904 Adeline Street 3 49 10 $6,350,000 $4,000,000 $4,000,000 $10,350,000Started construction September 2023. Impact fees, LMIAF#5Resources for Community Development Longfellow Corner3801 Martin Luther King Boulevard 1 76 20 $14,439,000 $4,800,000 $4,800,000 $19,239,000Awarded 9% credits in Fally 2023, starting construction spring 2024.. Impact fees, LMIAF, Boomerang, Meas KK, Measure U#6East Bay Asian Local Development Corporation East 12th Street 121 East 12th Street 2 90 23 $15,500,000 $15,500,000 $15,500,000Awarded 4% tax credits in August 2023, starting construction in early 2024. Measure U (+EWD)#7MARK TWAIN PARTNERS, LPMARK TWAIN HOMES 3525 Lyon Avenue 4 67 67 $5,000,000 $8,000,000 $8,000,000 $13,000,000preparation for the National Housing Trust Fund application due on 2/29/2023. Boomerang, Meas KK, Meas U#8Mercy Housing California2125 Telegraph Avenue 2125 Telegraph Avenue 3 96 26 $10,000,000$Received HUD 202 award in September 2023. Needs additional funds to be competitive for State funds. Will apply in next NOFA round. $1.6M proposed CDBG funding#9East Bay Asian Local Development Corporation Lake Merritt BART Senior Affordable Housing 51 9th Street 29744 $14,000,000 $2,100,000 $11,900,000 $14,000,000Awarded 4% tax credits in December 2023, starting construction in spring 2024. Measure U (+EWD)#10Eden Development, Inc.Dr. Kenneth Anderson Senior Apartments1003 E. 15th Avenue26720$28,594,748$$Project seeking to apply for State funds. #11Spanish Speaking Unity Council2700 International Boulevard2700-2720 International Blvd & 1409-1415 Mitchell St57419$7,000,000$9,300,000$2,100,000$7,200,000$16,300,000Applied for 4% Tax Credits in April 2024. Measure U (+EWD)#12Satellite Affordable Housing Associates3135 San Pablo3135 San Pablo Avenue37236$23,394,000$$Exploring State funding sources; needs City match. Meas U proposed#13Eden Housing, Inc.Residences at Liberation Park73rd Avenue & Foothill Boulevard (7410 Macarthur Blvd)611830$15,000,000$$Planning to apply for AHSC and CDLAC funds, needs City match#142301 Telegraph LP (McCormack Baron Salazar)2301 Telegraph2301 Telegraph3580$3,400,000$$Project exploring other sources, would use City commitment to apply, but would also likely need additional funds.#15Sandidge Urban Group, Inc. Johnnies Place7994 MacArthur Blvd73939$5,500,000$$Project confirmed inactive.#16The Related Companies of California, LLC 430 Broadway Building C430 Broadway3740$19,000,000$$Project SB 35 entitlements in place. No PSH units. 1170413$47,954,000$193,988,748$70,000,000$19,100,000$117,954,000Funded outside NOFA Mandela Station Partners LLCMandela Transit Village 1451 7th Street 3 238 60 $18,000,000Applied 4% tax credits April 2024Meas U348 Spring 2024 NOFA Funding Awarded/ ProposedTotal City FundingFunding Sources (subject to change) Total Applications
Project Status UpdateSpring 2023 NOFA Amount RequestedSpring 2023 NOFA Amount AwardedAttachment A: 2023-2024 New Construction NOFA Awards (As of 8/12/2024)Ranking Applicant Project Name Project AddressCouncil DistrictAffordable UnitsPSH Units
Attachment CAcquisition and Conversion to Affordable Housing (ACAH) Project Awards, 2017-PresentCLT/COOP?Year of NOFA Project Name Project Sponsor Address # of Units# of Affordable Units City FundsCity Funds Per Unit Council District2017Highland PalmsEBALDC1810 E. 25th Street2322$3,000,000$130,4352201710th Avenue EastlakeEBALDC2515 10th Avenue3534$5,000,000$142,8572CLT/COOP2017812 East 24th StreetOakCLT812 East 24th Street77$974,150$139,1642CLT/COOP 2019 OakCLT Scattered Site (107th/Wentworth/87th)Oakland Community Land Trust (OakCLT)2242 107th Ave, 5330 Wentworth Ave, 1709 87th Ave 3 3 $849,616 $283,205 52019 10320 MacArthur Blvd ProjectRichmond Neighborhood Housing Services 10320 MacArthur Blvd 17 17 $2,500,000 $147,059 7CLT/COOP2019Harvest HouseOakCLT5940 Hayes Street11$150,000$150,0006CLT/COOP20196470 MacArthur BlvdOakCLT6470 MacArthur22$390,606$195,3036CLT/COOP2019Newton HouseBACLT 285 Newton Street22$300,000$150,0002CLT/COOP20201534 29th AvenueOakCLT1534 29th Avenue1414$2,100,000$150,0005CLT/COOP2020789 61st Street CoopNCLT789 61st Street Coop44$1,200,000$300,0001CLT/COOP20201658 34th AvenueOakCLT1658 34th Ave44$1,200,000$300,00052020East Bay Capital Portfolio II Fund IV, LPEBALDC430 Vernon St, 3465 Richmond Blvd, 646 Foothill Blvd4039$1,700,000$43,5901CLT/COOP 2019 & 2020 Scattered Site (Hillside/Ritchie/76th)OakCLT8020 Hillside Street; 2684 Ritchie Street, 2735 76th Avenue 3 3 $900,000 $300,000 6CLT/COOP 2019 & 2022 12th Avenue CooperativeBay Area CLT (BACLT) 1432 12th Ave 7 7 $2,609,831 $372,833 2CLT/COOP 2019 & 2022 6106-6108 Hilton St CLY Anti-Displacement ProjectNorthern California Land Trust (NCLT) 6106-6108 Hilton Street 16 16 $4,800,000 $300,000 6CLT/COOP2019 & 2022ShadetreeBACLT/SHADE48 5th Ave2520$4,700,000$235,00022019 & 20222000 36th AvenueThe Unity Council2000 36th Ave5554$7,500,000$136,36452019 & 2022524-530 8th StreetHousing Consortium of East Bay524-530 8th Street3939$7,500,000$192,30832019 & 202236th Ave Apartments The Unity Council1921 and 2022 36th Ave2524$7,500,000$300,0005322312$54,874,203 by year or projected year of construction completion or occupancy startTotal UnitsAffordable UnitsPermanent Supportive/HomelessCompleted/Occupancy Start209219315992024478 462 178New Construction4614461787th & Campbell797878Ancora Place 777616Brooklyn Basin: Project 4 (Foon Lok East)12412338Fruitvale Transit Village II-B18116946Acquisition/Rehab/Conversion1716010320 Mac Arthur Blvd Project 171602023134 133 82New Construction55541495th and International555414Acquisition/Rehab/Conversion797968Kingdom Builders Transitional Housing Program343424Piedmont Place4545442022310 306 26New Construction13012926Brooklyn Basin: Project 3 (Foon Lok West)13012926Acquisition/Rehab/Conversion555402000 36th Avenue (Phase 1)55540Rehabilitation (Existing Portfolio)1251230Frank G Mar Apartments1191170Peace Gardens6602021297 292 198New Construction211207124Aurora Apartments (aka MacArthur Apartments)444343Coliseum Place595812Monarch Homes (aka 3268 San Pablo)515013Nova Apartments (aka Oak Hill)575656Acquisition/Rehab/Conversion868574Clifton Hall 414141Fruitvale Studios242312Inn at Temescal2121212020493 418 7New Construction2852420Brooklyn Basin: Project 1 (Paseo Estero)1011000Brooklyn Basin: Project 2 (Vista Estero)1101090Estrella Vista - 3706 San Pablo, Olympia Place74330Acquisition/Rehab/Conversion62300Tung Portfolio II - Emerald Estates34100Tung Portfolio III - Creekside Apts13100Tung Portfolio IV - Foothill Apts15100Rehabilitation (Existing Portfolio)1461467Empyrean Tower65657Harrison Hotel818102019380 320 108New Construction 309 249 38Camino 2337365Casa Arabella949220Civic Center 14 TOD403910Coliseum Connections110550Redwood Hill Townhomes28273Acquisition/Rehab/Conversion717170Harvest House110The Holland 70 70 70 Housing Development Activity 2019 - June 2024
by year or projected year of construction completion or occupancy startTotal UnitsAffordable UnitsPermanent Supportive/HomelessHousing Development Activity 2019 - June 2024Pre-Development - Projected Completion15641547640203085 85 0New Construction858501707 Wood Street - Ownership858502028153 151 13New Construction153151131707 Wood Street - Rental858413Dr. Kenneth Anderson Senior Living686702027413 408 128New Construction41340812834th Street & San Pablo Avenue605930500 Lake Park535220Agnes Memorial Senior Apartments605918Mandela Station Affordable240238602026424 420 118New Construction237234792700 International Blvd757419285 12th Street 656416Lake Merritt BART Senior Affordable Housing979644Acquisition/Rehab/Conversion23230Shadetree 23230Rehabilitation (Existing Portfolio)164163392000 36th Avenue (Phase 2)55550Mark Twain Homes 109108392025167 164 127New Construction1291271271888 MLK (R2H2) 88 87 87Dignity Village Oakland414040Acquisition/Rehab/Conversion181801534 29th Avenue 14140789 61st Street440Rehabilitation (Existing Portfolio)20190Harp Plaza201902024297 295 254Acquisition/Rehab/Conversion2052031621658 34th Avenue4403 SF Homes330524-530 8th Street3939106470 MacArthur Blvd220CSH Enterprise Housing105104104Imperial Inn494848OakCLT Scattered Site330Rehabilitation (Existing Portfolio)929292Hamilton Apartments929292202325 24 0Acquisition/Rehab/Conversion2524036th Avenue Apartments25240 by year or projected year of construction completion or occupancy startTotal UnitsAffordable UnitsPermanent Supportive/HomelessHousing Development Activity 2019 - June 2024Under Construction - Projected Completion5975913132026244 241 88New Construction244241883050 International 767531E.12th Street (Project 1)919023Longfellow Corner 7776342025230 227 109New Construction21020789Friendship Senior Rental Housing504910The Phoenix 10110049West Grand & Brush 595830Acquisition/Rehab/Conversion202020Covenant House2020202024123 123 116Acquisition/Rehab/Conversion1231231161432 12th Avenue Cooperative770BACS Scattered Sites808080Inn by the Coliseum363636Grand Total: 2019 - June 2024425340691552