CITY COUNCIL STAFF REPORT
Meeting Date: December 04, 2023
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-23 EXECUTING AN AMENDMENT TO
AN AFFORDABLE HOUSING DISPOSITION AND DEVELOPMENT
AGREEMENT (DDA) FOR 85 WOODSWORTH LANE (APN 150-150-071)
AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO
EXECUTE AMENDMENT DOCUMENTS
SYNOPSIS
On February 22, 2021, the City Council approved an Affordable Housing Disposition and Development Agreement (Agreement) to convey a parcel of vacant land at 85 Woodsworth Lane (APN 150-150-071-2) (Site) to Habitat for Humanity East Bay/Silicon Valley (Developer) for the development of four ownership housing units. The City also provided the Developer a loan to ensure three of the units were reserved for low-income households. The Developer has completed a site survey determining the parcel is actually smaller than what was indicated on the assessor’s parcel map. Without a General Plan Amendment and rezoning of the property, the Site’s applicable existing land use and zoning regulations preclude development of four units on the now smaller property. Initially, the Developer proposed amending the Agreement to reduce the Project’s unit count from four to three units, all restricted for low-income households. The proposed First Amendment to the Agreement would also extend certain performance deadlines to account for the delay imposed by the change. At the November 6, 2023 City Council meeting, the Council directed staff to modify the agreement to provide the Developer with flexibility to construct either three or four units onsite.
DISCUSSION
On February 21, 2021, the City Council approved an Agreement to convey the Site to the Developer for $10 for the development of four ownership housing units, of which three are restricted for low-income homebuyers and one is restricted for moderate income homebuyers.
Additionally, the City agreed to provide a forgivable $285,000 loan from the Housing Successor’s Low and Moderate Income Housing Asset Fund (Housing Asset Fund) to assist with the development of the three low income units. State law does not permit the Housing Asset Fund to assist with the development of moderate income units.
On November 6, 2023, the City Council discussed the request. As part of the discussion, given the City’s support for construction of additional housing, particularly affordable housing, the City Council expressed a desire to allow maximum flexibility to the Developer to build either three or four units. Accordingly, City staff has revised the amended Disposition and Development Agreement (Attachment A, Attachment 2) to reflect Council’s direction and allow the construction of either three or four units.
Further analysis/discussion on the request is provided in the November 6, 2023 City Council Staff Report, provided as Attachment B.
FISCAL IMPACT
There is no immediate fiscal impact at this time. The Agreement approved a $285,000 expenditure from the Housing Successor’s Low and Moderate Income Housing Asset Fund, which is restricted for use on affordable housing activities. This expense is included in the Housing Successor budget; the Developer has not requested modification of the approved dollar amount.
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center 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 resolution modifying times or dates for performance in the Agreement, as proposed.
ALTERNATIVES TO RECOMMENDED ACTION
1. Do not adopt the resolution;
2. Continue the matter to a later date with direction provided to staff.
ATTACHMENT(S):
A. Proposed Resolution
1. Disposition and Development Agreement
2. First Amendment to Disposition and Development Agreement B. November 6, 2023 City Council Staff Report (Attachments available from the Planning Division)
C. Developer Letter Requesting Amendment (May 30, 2023) D. RSG Memo Reviewing Developer Request (June 29, 2023) Prepared by: Troy Fujimoto, City Planner
Approved by: Ethan Bindernagel, City Manager