April 3, 2023
Community Development
DATE: April 3, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Lina Velasco, Director of Community Development
Nannette Beacham, Director of Economic Development
Subject:
Authorization to execute Agreements with Grant
Application partners, BART and Pacific West
Communities related to an AHSC Grant Application for
the Metrowalk Phase 2 Project
FINANCIAL IMPACT: There is no required match for the grant; therefore, there will be no impact to the general fund. The City would
execute a State of California Standard Agreement
(Standard Agreement) in a total amount not to exceed
$15,000,000 of which up to $5,000,000 is allocated for
the AHSC-funded City Project components, including
transit improvements to be completed in partnership with AC Transit. The remaining amount would be for
implementation of BART’s New Train Car Project and
Next Generation Fare Gates to be implemented by
BART.
PREVIOUS COUNCIL
ACTION:
On May 18, 2021, the City Council authorized submission for this grant for the previous round, but unfortunately was not funded.
STATEMENT OF THE
ISSUE:
The Community Development Department is working
with BART and Pacific West Communities in preparing
an application to the State Department of Housing and
Community Development (HCD) for Affordable Housing
and Sustainable Communities Program (AHSC) funds for
the Metrowalk Phase 2 Housing Project. An application
AGENDA
REPORT
April 3, 2023
for AHSC Round 6 funding was submitted in 2021,
however, the application was not funded. The City and
its partners have revised the project to respond to rater feedback and are seeking to resubmit for Round 7 AHSC
funding.
RECOMMENDED ACTION:
AUTHORIZE the city manager to enter into an
Implementation and Mutual Indemnity Agreement with
BART and Pacific West Communities required to apply
for and receive funds for the Metrowalk Phase 2 project, which includes a 150-unit affordable housing
development and related transit, pedestrian, and bicycle improvements from Round 7 of the Affordable Housing
Sustainable Communities (AHSC) grant program –
Community Development Department (Lina Velasco 510-
620-6841). This item was continued from the March
28, 2023, meeting.
DISCUSSION:
Community Development staff and joint applicant, Pacific West Communities, are seeking grant funding from the State Housing and Community Development (HCD) for Affordable Housing and Sustainable Communities Program (AHSC) for the purposes of delivering the Metrowalk Phase 2 Project, which includes a 150-unit affordable housing development and related bicycle, pedestrian, and transit improvements to be implemented by City of Richmond; BART’s New Train Car and Next Generation Fare Gates projects to be implemented by BART; and improvements to transit service and amenities to be implemented by the City of Richmond, in partnership with AC Transit, around the Richmond BART station.
The AHSC program furthers the purposes of AB 32 (Chapter 488, Statues of 2006), SB 375 (Chapter 728, Statutes of 2008), and SB 32 (Chapter 249, Statutes of 2016) in that the purpose of the AHSC program is to reduce greenhouse gas (GHG) emissions through projects implementing land-use, housing, transportation, and agricultural land preservation practices to support infill and compact development, while supporting related and coordinated public policy objectives. Funding for the AHSC program is provided from the Greenhouse Gas Reduction Fund (GGRF), an account established to receive Cap-and-Trade auction proceeds. This program combines affordable housing funding with low-carbon transportation investments.
The AHSC program is part of California Climate Investments (CCI), a statewide program funded through the GGRF that puts billions of Cap-and-Trade dollars to work reducing GHG emissions, strengthening the economy, and improving public health and the environment – particularly in disadvantaged communities.
April 3, 2023
The Metrowalk Phase 2 Project will consist of the following project components:
1. City of Richmond –
a. Hacienda Safe Routes to Transit Project - Intersection improvements at Marina Way and Barrett Avenue to enhance pedestrian safety, including high visibility crosswalks, pedestrian signal push buttons, cameras for bicycle and vehicle detections, bulb-outs, and new traffic signals; traffic calming measure including curb extensions, ADA ramps with truncated domes, lighting, and wayfinding signage. Budget: $1,405,000 b. TCC Neighborhood Complete Streets: Over one mile of Class IV bikeway and pedestrian improvements including street trees and wayfinding on Marina Way South completing the Richmond Wellness Trail that connects the Richmond BART Station to the ferry at the waterfront, and installation of Class II, Class III and Class IV bikeways and new walkways that improve mobility and pedestrian access along Harbour Way. AHSC funds are being leveraged to expand the scope of these two TCC-funded projects in the City of Richmond. Budget: ~$1,035,000 c. AC Transit-Related Improvements: This component includes Transit Signal Prioritization improvements on Macdonald Avenue and installation of new bus shelters on Macdonald Avenue. This project component will be completed in partnership with AC Transit. Budget: $1,158,000
2. BART
a. STI Improvements: Purchase of two new capacity-increasing heavy rail cars to extend the length of trains, increase the number of trains operating through the Transbay Tube during peak, and maximize throughput capacity across the BART network. Budget: $8,368,828
b. BART TRA Improvements: BART will install X Next Generation Fare Gates at Richmond BART Station as part of an effort to upgrade all fare gates throughout its system. The Next Generation Fare Gate design incorporates a tall, swing-style gate with improved passenger throughput and maintainability, and a more modern appearance. Budget: $1,531,048
3. Pacific West Communities
a. The proposed housing development project, Richmond Metrowalk, is a 150-unit new affordable family construction project located on the east side of the Richmond BART Station. Budget: $30,000,000
4. Transit Passes for Affordable Housing Residents
a. Scope: 3 Years of fully subsidized monthly transit passes for all restricted (affordable) units at Richmond Metrowalk. Budget: $948,355
5. Program – TBD
Budget: Approximately $300,000
City staff is seeking authorization to enter into an Implementation and Mutual Indemnity Agreement with San Francisco Bay Area Rapid Transit District (BART) for
April 3, 2023
transportation-related improvements to be funded by the AHSC grant.
Developers seeking AHSC funds to subsidize the construction of affordable housing projects are more competitive if their funding requests include projects that improve pedestrian, bicycle, and transit access. In addition, 30% of the score for AHSC applications is based on the estimated reduction in greenhouse gas emissions, which comes in part from a strong transit component. BART's application components would include funding requests for new BART Fleet of the Future rail cars, Next Generation Fare Gates, and station area improvements such as platform displays and wayfinding signage.
AHSC is a highly competitive funding program, and BART's transportation components would greatly boost the competitiveness of these affordable housing projects near the stations. The program does not require BART to be a direct applicant for these funds, and typically the lead applicant is the affordable housing developer, sometimes jointly with the local jurisdiction or other public entity. BART would be a subrecipient to the affordable housing developer or public entity, and under the terms of the funding application, must enter into agreements in advance of the application deadline to confirm BART's role. The State of California requires AHSC-related agreements to be executed in advance of the AHSC grant application deadline of April 4, 2023.
Through this agreement with BART, the City would serve as a conduit for the AHSC funds for the New Train Car Project and Next Generation Fare Gates. Staff is also requesting authorization from the Council to enter into pass-through agreements with awardees to receive funds needed for the transportation improvements if the applications are successfully awarded by the State. SGC and HCD are expected to announce grant awards in August 2023.
All agreements will be approved as to form by the City Attorney. The grant required agreement is in Attachment 1.
DOCUMENTS ATTACHED:
Attachment 1 – Implementation and Mutual Indemnity Agreement