City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00271 3/28/2023 Consent Item 14.
City Support of Affordable Housing Sustainable Communities Grant for Sustainable Transit Infrastructure Projects for the BRIDGE Housing Corporation Affordable Housing Development at 440 Arden Way
File ID: 2023-00271
Location: 440 Arden Way, District 2, Represented by Councilmember Loloee Recommendation: Adopt a Resolution: 1) in support of BRIDGE Housing Corporation’s Affordable Housing Sustainable Community (AHSC) grant application for Sustainable Transportation Infrastructure, Transit Related Amenities, and Program costs; and 2) authorizing the City Manager or City Manager’s designee to execute an Agreement, Attachment 3, with BRIDGE Housing Corporation demonstrating prior experience with projects that are similar to eligible AHSC Program Projects as required by the AHSC Program Guidelines.
Contact: Leslie Fritzsche, Economic Development Manager, (916) 808-5450, [email protected]; Axel Magallanes, Housing Analyst, (916) 808-1844, [email protected], Office of Innovation and Economic Development; Megan Johnson, Senior Engineer, (916) 808-1967, [email protected], Department of Public Works; Raymond Constantino, Park Planning, Design and Development Manager, (916) 808-1941, [email protected], Department of Youth, Parks, and Community Enrichment.
Attachments:
1-Description/Analysis
2-Resolution
3-Exhibit A - AHSC Agreement (Arden Way)
Description/Analysis
Issue Detail: BRIDGE Housing Corporation’s (BRIDGE) affordable housing project at 440 Arden Way is designed and programmed as a key neighborhood Transit Oriented Development. The project will have 124 units (1-, 2-, and 3- bedrooms) serving households who earn between 25% and 60% Area Median Income (AMI) including a robust inclusion of 31 Permanent Supportive Housing units.
File ID: 2023-00271 3/28/2023 Consent Item 14.
The ground floor of the building is planned to include a childcare center, retail space, and community room. Additionally, the project will add pedestrian/bike improvements, and public transit improvements to the Arden corridor and Woodlake Park.
In light of the significant greenhouse gas (GHG) reducing metrics that the affordable housing and transit improvements will generate, staff and BRIDGE, have been working diligently with Sacramento City Planning, Public Works and Parks Departments to position the project for a very strong, competitive AHSC application.
The AHSC state grant program is a combined affordable housing and transit infrastructure/incentive funding program that aims to support affordable housing units that connect with greenhouse gas- reducing transit options for residents. The AHSC program uses state Cap & Trade funding from other uses throughout the state to fund these pollution reducing objectives. Applications for Round 7 of the AHSC program are due in early April with an award announcement anticipated in August 2023. The City’s Public Works and Parks Departments have been working with BRIDGE to identify sustainable transit infrastructure/public transit improvements that improve pedestrian access to transit stops, support the community’s existing plans for improvements and make the project highly competitive for these funding resources. Award of these resources would be a great support to the completion of this affordable housing development and related City transportation improvements in the surrounding area. After careful analysis of existing unfunded projects related to this site and in accordance with the AHSC criteria, the City is including the Clean and Green Dixieanne Alleyway project (bike) and ADA compliant Perimeter Walkway at Woodlake Park (pedestrian) improvements in the application for this project as a candidate of AHSC funding. City staff and BRIDGE Housing are supportive of this determination.
Policy Considerations: Support of the BRIDGE AHSC grant application provides the potential of funding for the BRIDGE housing development, the City, and pedestrian infrastructure needs in the area that reduce greenhouse gas emissions and benefit the broader community in addition to this project location. The affordable housing development will deliver much-needed affordable housing, consistent with Housing Element site inventory and the City’s Regional Housing Needs Allocation (RHNA), including a set-aside for Permanent Supportive Housing units that will serve formerly homeless individuals.
Economic Impacts: Development of these 124 affordable housing units and the related transit and pedestrian infrastructure will provide hundreds of jobs in the City and induce additional jobs needed for the required housing development supply chain. The project will also create permanent jobs through site staffing and occupancy of the commercial ground floor space.
Environmental Considerations: If the grant is awarded, the City’s pedestrian infrastructure projects would be subject to environmental review before construction is authorized.
File ID: 2023-00271 3/28/2023 Consent Item 14.
Sustainability: Development of this site at 440 Arden Way as a transit-oriented development with affordable housing furthers the goals of sustainability. Pairing this development with the recommended accompanying transit and pedestrian improvements makes it easier for both the affordable housing residents and surrounding residents to bike and walk in and through the area as modes of transportation.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The recommendations in this report further the City objectives of providing a range of housing for community needs, including affordable housing, while also providing a sustainably developed project that also supports community infrastructure needs through this combined funding. Staff is supportive of applying for this funding, as it can assist in timely development of the housing and transit infrastructure.
Financial Considerations: Receipt of the AHSC funding would both assist BRIDGE Housing in the development of their 440 Arden Way project as well as assist the City’s Public Works and Parks Departments with funding for related bike and pedestrian improvements. The City projects outlined as part of the application are estimated to cost approximately $4.25 million dollars, which would be fully funded by this grant and will not require a grant match. The application will also include funds for the San Joaquin Regional Rail Commission’s ACE Train line as well as bus stop and light rail station improvements for Sacramento Regional Transit. If awarded, staff will return to City Council for the necessary authority to accept the grant funding and establish the budget for the capital improvements.
Local Business Enterprise (LBE): Not applicable.
RESOLUTION NO.
Adopted by the Sacramento City Council
SUPPORTING BRIDGE AFFORDABLE HOUSING AND SUSTAINABLE
COMMUNITIES PROGRAM GRANT APPLICATION FOR SUSTAINABLE
TRANSIT INFRASTRUCTURE PROJECTS
BACKGROUND
A. The State of California Strategic Growth Council (SGC) and the Department of Housing and Community Development (Department) have announced the intent to issue Notice of Funding Availability (NOFA) for the Affordable Housing and Sustainable Communities (AHSC) Program Round 7. The AHSC Program was established under Division 44, Part 1 of the Public Resources Code commencing with Section 75200.
B. The SGC is authorized to approve funding allocations for the AHSC Program, subject to the terms and conditions of the NOFA, Program Guidelines, application package, and Standard Agreement. The Department is authorized to administer the approved funding allocations of the AHSC Program.
C. If BRIDGE Housing’s application for AHSC Program funds for the 440 Arden Way Affordable Housing Project is approved, Sustainable Transit Infrastructure funding would be made available for City bicycle and pedestrian improvements to the Arden Corridor and at Woodlake Park.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City supports BRIDGE Housing Corporation’s submission of a grant application that includes Sustainable Transit Infrastructure capital asset(s) that have been reviewed and approved by the City to the AHSC Program for the 440 Arden Way Affordable Housing Project.
Section 2. The City Manager or the City Manager’s designee is authorized to execute an Agreement with BRIDGE Housing Corporation which form is attached to this Resolution and is required by AHSC Guidelines which requires a demonstration of prior experience in projects similar to that of proposed AHSC Capital Projects. (Round 7 AHSC Program Guidelines, December 15, 2022, Section 106 (a)(12))
Section 3. If the AHSC grant is awarded, the City will use the AHSC grant funds for Sustainable Transit Infrastructure capital asset(s) that are approved by the City’s Public Works and Parks departments and the Department through its approval of the BRIDGE Housing Corporation’s AHSC grant application, and in the manner approved by the Department in accordance with the NOFA, Program Guidelines and application package and the City.
Section 4. Exhibit A is a part of this Resolution – AHSC Agreement (Arden Way)
TABLE OF CONTENTS:
Exhibit A – AHSC Agreement (Arden Way)
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Exhibit A
AHSC AGREEMENT
(Arden Way)
THIS AHSC AGREEMENT (the “Agreement”) is made and entered into as of [______] (the “ Effective Date ”) between City of Sacramento (“Agency”), and BRIDGE Housing Corporation, a California nonprofit public benefit corporation (the “Developer “and collectively with the Agency, the “Parties”, or individually, a “Party”) upon the basis of the following facts, understanding and intentions of the Parties:
A. The State of California, the Strategic Growth Council and the Department of Housing and Community Development (“ HCD”) issued a Notice of Funding Availability dated January 30, 2023 (the “ AHSC NOFA ”), under the Affordable Housing and Sustainable Communities (“AHSC”) Program established under Division 44, Part 1 of the Public Resources Code, commencing with Section 75200 and as further governed by the AHSC Program Round 7 Guidelines dated December 15, 2022 (the “AHSC Guidelines”).
B. Developer is applying for AHSC funds in response to the AHSC NOFA to provide funding for (A) construction of the affordable housing project located generally at 440, 490, and 492 Arden Way in the City of Sacramento, California (the “ Housing Project ”); (B) the construction of certain sustainable transportation infrastructure subject to the appr oval of and to be constructed by the Agency, including an Woodlake Park accessible sidewalk and Dixieanne clean and green alleys (the "STI Improvements "); and (C) the construction of certain transportation-related improvements to be constructed by other pa rties. The Agency is not a co- applicant with the Developer on the application for AHSC funds (the “ AHSC Application”) but is the owner of the property on which the STI Improvements will take place.
C. The Agency and Developer are entering into this Agreement to comply with the AHSC Guidelines. The Agency can demonstrate prior experience and provide evidence of at least two prior projects that are similar in scope and size which have been completed during the ten (10) years preceding April 4, 2023. Below is a list of these projects:
1. STI: [Description of prior accessible sidewalk project within the last 10 years].
Completion Date: [_______]
Construction Cost: [________]
2. STI: [Description of prior accessible sidewalk project within the last 10 years].
Completion Date: [_______]
Construction Cost: [________]
3. [STI: [Description of prior bike path project within the last 10 years].
Completion Date: [_______]
Construction Cost: [________]
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4. STI: [Description of prior bike path project within the last 10 years].
Completion Date: [_______]
Construction Cost: [________]
F. The Agency desires to be responsible for developing and constructing the STI Improvements (the “Agency Obligations”.)
NOW, THEREFORE, in consideration of the recitals, covenants and agreement s set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto hereby agree as follows:
AGREEMENT
1. Obligations. The Agency will complete the STI Improvements with documents evidencing the expenditure of AHSC Funds from HCD, which documents are subject to the Agency’s prior written approval. In addition, t he Parties’ obligations under this Agreement are subject to Developer obtaining the award of AHSC F unds from HCD pursuant to the AHSC Application and the closing of the construction financing for the Housing Project. The Agency agrees not to expend any funds or incur any costs or liability in connection with the STI Improvements until the closing of the construction financing for the Housing Project.
2. Implementation Agreements. The Agency and the Developer recognize that each Party may need additional assurances from the other Party regarding the AHSC Funds before commencement of construction of the Housing Project and the STI Improvements. The Parties agree to cooperate with each other to reach mutual agreement on amendments to this Agreement, other implementation agreements or estoppel certificates necessary to provide reasonable assurances and indemnifica tions. Developer recognizes that any such amendments to this Agreement, other implementation agreements or estoppel certificates may require the approval of the governing body of the Agency.
3. Termination. This Agreement shall terminate upon the earlier of: (i) completion of all Agency Obligations related to the AHSC Funds; (ii) mutual written agreement of the Parties; or (3) prior to the closing of construction financing for the Housing Project, written notice from the Developer to the Agency of the Developer’s determination, in the Developer’s sole discretion, not to proceed with the development of the Housing Project or that the Housing Project or AHSC Funds is otherwise infeasible.
4. Miscellaneous. Reserved.
[Signatures on following page]
144\336\3488959.1
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the Effective Date.
AGENCY:
City of Sacramento, a municipal corporation of the state of California
By: ________________________________
Name: ________________________________
Its: ________________________________
Attest:
By: ________________________________
Name: ________________________________
Its: ________________________________
Approved as to Form:
By: ________________________________
Name: ________________________________
Its: ________________________________
[Signatures Continue on Following Page]
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DEVELOPER:
BRIDGE Housing Corporation,
a California nonprofit public benefit corporation
By: ________________________________
Name: ________________________________
Its: ________________________________