CITY COUNCIL STAFF REPORT
Meeting Date: September 12, 2022
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-22, APPROVING A REQUEST FOR A
LETTER OF SUPPORT FOR A GRANT APPLICATION SUBMITTED BY
SATELLITE AFFORDABLE HOUSING ASSOCIATES (SAHA) TO
CALIFORNIA DEPARTMENT OF HOUSING COMMUNITY
DEVELOPMENT (HCD) FOR THE AFFORDABLE SENIOR HOUSING
PROJECT AT 490 GOLF CLUB ROAD
SYNOPSIS
Satellite Affordable Housing Association (SAHA) requests a letter of support from the City of Pleasant Hill City Council for the Infill Infrastructure Grant Program of 2019 (IIG-2019) application, which is related to the recently approved SAHA Senior Housing project, an 82-unit affordable senior housing development at 490 Golf Club Road. The IIG-2019 grant is one of several Programs within the 2022 Multifamily Finance Super Notice of Funding Availability (Super NOFA) administered through the State of California Department of Housing and Community Development (HCD). To bolster the grant application, a local governing body may submit a letter of support as part of the grant application to augment the project’s eligibility for funding.
DISCUSSION
Background
On January 24, 2022, the City Council adopted Resolution No. 8-22 approving a Development Plan Permit, Use Permit, Minor Subdivision and Architectural Review Permit for a new adult daycare facility, new preschool facility, and a new 82-unit affordable senior housing facility.
Since that approval, SAHA has been pursuing various funding sources for completion of the project (Attachment D). The City has also supported this project by providing financial assistance through the City’s Affordable Housing Fund.
SAHA has applied for, and received, additional sources of revenue, including grants and loans through various sources. The current source of funding that SAHA is applying for is the Infill Infrastructure Grant funding for the affordable senior housing component of the project. This grant is intended to advance the State’s goal of creating 2.5 million homes by 2030, and in particular, assist in producing the more than 1 million homes needed for Californians experiencing homelessness and people with low and very low incomes (Attachment C).
HCD has released approximately $650,000,000 allocated across several different programs (2022 Multifamily Finance Super Notice of Funding Availability), $200,000,000 of which has been allocated towards the Infill Incentive Grant Program of 2007 and Infill Infrastructure Grant Program of 2019. These two programs provides grant assistance available as gap funding for infrastructure improvements necessary for specific residential or mixed-use infill development projects.
Analysis
As part of the grant application, the SAHA is applying for a $4,115,016 grant from HCD to assist in development of the approved project (Infill Infrastructure Grant Program of 2019 – IIG-2019).
As part of the application, a letter of support from the governing agency improves a project’s chances to qualify as an eligible application per Section 206(a)(2)(A) of the 2022 Super NOFA (Attachment B). The letter must be submitted to HCD by October 14, 2022, in order to be accepted as part of the grant application and will strengthen the project’s potential to receive funds.
Thus, the applicant is requesting the City Council authorize the letter of support to better position the project for funding through this Super NOFA.
If the City Council supports this request, the applicant will include with its application to HCD the draft letter attached to this report.
FISCAL IMPACT
The project applicant will prepare the grant application. Any City staff effort to support this request occurs as part of daily activities; thus, no additional City funding is required to accommodate this request.
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Adopt the Proposed Resolution.
ALTERNATIVES TO RECOMMENDED ACTION
Do not adopt the resolution.
ATTACHMENT(S):
A. Proposed Resolution
B. Draft Letter of Support
C. Super NOFA Amendment Handout
D. City Council Reso No. 8-22
Prepared by: Troy Fujimoto, City Planner
Approved by: Ethan Bindernagel, Acting City Manager