City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00524 2/27/2024 Consent Item 4.
City Support of Affordable Housing Sustainable Communities Grant for Sustainable Transit Infrastructure Projects for the CACDC/Mutual Affordable Housing Development at 2000 16th Street
File ID: 2024-00524
Location: 2000 16th Street, District 4, Represented by Councilmember Valenzuela Recommendation: Adopt a Resolution: 1) in support of CACDC/Mutual’s Affordable Housing Sustainable Communities (AHSC) program grant application for Sustainable Transportation Infrastructure, Transit Related Amenities, and Program costs; 2) authorizing the City Manager or City Manager's designee to execute an Agreement, Attachment 3, with CACDC/Mutual demonstrating prior experience with projects that are similar to eligible AHSC Program Projects as required by the AHSC Program Guidelines; and 3) expressing how the AHSC grant funds will be utilized if the grant is awarded.
Contact: Ya-yin Isle, City Housing Manager, (916) 808-1869, [email protected]; Axel Magallanes, Housing Analyst, (916) 808-1844, [email protected], Office of Innovation and Economic Development; Amber Castle-Keane, Associate Engineer, (916) 808-8141, [email protected], Department of Public Works Presenter: None.
Attachments:
1-Description/Analysis
2-Resolution
3-Exhibit A - AHSC Agreement (16th/T)
Description/Analysis
Issue Detail: The Capitol Area Community Development Corporation (CACDC) and Mutual Housing’s affordable housing project at 2000 16th Street is designed and programmed as a key neighborhood Transit Oriented Development. The project will have 134 units (68 studios, 65 1BR, and 1 2BR manager unit) serving households that earn between 30% and 60% Area Median Income (AMI). The project will also include 2500 square feet of commercial space and various amenities onsite for residents. Additionally, the project will add pedestrian/bike improvements, and public transit improvements along the S Street corridor.
File ID: 2024-00524 2/27/2024 Consent Item 4.
The AHSC grant program is administered by the California Department of Housing and Community Development (HCD) and 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 8 of the AHSC program are due in early March 2024 with an award announcement anticipated in August 2024.
The City's Public Works Department has been working with CACDC/Mutual Housing 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 add 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 S Street Mobility Project improvements in the application for this project as a candidate for AHSC funding. City staff and CACDC/Mutual Housing are supportive of this determination.
Policy Considerations: Support of the CACDC/Mutual Housing AHSC grant application provides additional potential funding for the CACDC/Mutual Housing development and pedestrian infrastructure needs in the area that reduce greenhouse gas emissions and benefit the broader community in addition to this project location. The proposed affordable housing development will deliver much-needed affordable housing, consistent with Housing Element site inventory and the City's Regional Housing Needs Allocation (RHNA).
Economic Impacts: Development of these 134 affordable housing units and the related transit and pedestrian infrastructure will provide hundreds of jobs in the City and stimulate additional jobs needed for the required housing development supply chain.
Environmental Considerations: This report concerns fiscal activities that do not constitute a “project” as defined by the California Environmental Quality Act Guidelines Section 15378(b)(4).
Environmental review of any project will occur before construction is authorized.
Sustainability: Development of this site at 2000 16th Street 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.
File ID: 2024-00524 2/27/2024 Consent Item 4.
Rationale for Recommendation: The recommendations in this report furthers the City’s objective of providing a range of housing for community needs, including affordable housing, while also providing a sustainably developed project that supports community infrastructure needs through this combined funding. Staff are 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 CACDC/Mutual Housing in the development of their 2000 16th Street project as well as assist the City's Public Works Department with funding for related bike and pedestrian improvements. The City projects outlined as part of the application are estimated to cost approximately $4 million dollars, which would be fully funded by this grant, local, and CACDC funds. 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 CACDC/MUTUAL HOUSING 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 (HCD) have announced the intent to issue Notice of Funding Availability (NOFA) for the Affordable Housing and Sustainable Communities (AHSC) Program Round 8. 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. HCD is authorized to administer the approved funding allocations of the AHSC Program.
C. If CACDC/Mutual Housing's application for AHSC Program funds for the 2000 16th Street Affordable Housing Project is approved, Sustainable Transit Infrastructure funding would be made available for City bicycle and pedestrian improvements to the S Street Corridor.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City supports CACDC/Mutual Housing'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 16th/T Affordable Housing Project.
Section 2. The City Manager or the City Manager's designee is authorized to execute an Agreement with CACDC/Mutual 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 8 AHSC Program Guidelines, December 14, 2023, 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 department and HCD through its approval of the CACDC/Mutual Housing's AHSC grant
application, and in the manner approved by HCD in accordance with the NOFA, Program Guidelines and application package and approved by the City.
Section 4. Exhibit A is a part of this Resolution - AHSC Agreement (2000 16th Street)
TABLE OF CONTENTS:
Exhibit A - AHSC Agreement (2000 16th Street)
Exhibit A
AHSC AGREEMENT
(2000 16th Street)
THIS AHSC AGREEMENT (the “Agreement”) is made and entered into as of February 27, 2024 (the “Effective Date”) between City of Sacramento (“City”), Mutual Housing California ("Mutual") and the Capital Area Community Development Corporation, a California nonprofit public benefit corporation ("CACDC"), which together are 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 (“SGC”)and the Department of Housing and Community Development (“HCD”) issued a Notice of Funding Availability dated January 19, 2024 (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 8 Guidelines dated December 14, 2023 (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 2000 16th Street in the City of Sacramento, California (the “Housing Project”); (B) the construction of certain sustainable transportation infrastructure to be constructed by the City, including a S Street Mobility Project (the "STI Improvements"); and (C) the construction of certain transportation-related improvements to be constructed by other parties. The City 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 City and Developer are entering into this Agreement to comply with the AHSC Guidelines. The City 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, 2024.
Below is a list of these projects:
1. STI: [Downtown Bikeways: Bikeway improvements on P Street, Q Street, 10th Street, I Street, H Street, and F Street].
Completion Date: [2018]
Construction Cost: [$400,000]
2. STI: [Bell Avenue Complete Streets Rehabilitation Project: continuous Class II bikeway, sidewalk improvements, street lighting, and traffic signal improvements].
Completion Date: [2023]
Construction Cost: [$4,900,000]
3. STI: [DW Babcock School Improvement Project: continuous Class II bikeway, sidewalk improvements, traffic signal and crossing improvements].
Completion Date: [2021]
Construction Cost: [$1,600,000]
4. STI: [Franklin Blvd Class IV Bikeway Project: Class IV separated bikeway, traffic signal and crossing improvements].
Completion Date: [2021]
Construction Cost: [$1,000,000]
D. The City shall be responsible for developing and constructing the STI Improvements (the “City Obligations”.)
NOW, THEREFORE, in consideration of the recitals, covenants and agreements 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 City will complete the STI Improvements in documents evidencing the AHSC Funds from HCD, which documents are subject to the City’s prior written approval. In addition, the Parties’ obligations under this Agreement are subject to Developer obtaining the award of AHSC Funds from HCD pursuant to the AHSC Application and the closing of the construction financing for the Housing Project. The City agrees not to expend any funds or incur any costs or liability in connection with the STI Improvements until it receives written notification from Developer of the closing of the construction financing for the Housing Project.
2. Implementation Agreements. The City 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 indemnifications. Developer recognizes that any such amendments to this Agreement, other implementation
agreements or estoppel certificates may require the approval of the City and the Developer.
3. Termination. This Agreement shall terminate upon the earlier of: (i) completion of all obligations under the AHSC Documents related to the City Obligations; (ii) mutual agreement of the Parties hereto; or (3) prior to the closing of construction financing for the Housing Project, written notice from the Developer to the City 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.
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the Effective Date.
CITY:
The City of Sacramento, a municipal corporation
By: ________________________________
Name: _____________________________
Its: ________________________________
DEVELOPER:
Mutual Housing California,
a California nonprofit public benefit corporation
By: ________________________________
Name: Roberto Jimenez
Its: Chief Executive Officer
DEVELOPER:
Capitol Area Community Development Corporation,
a nonprofit public benefit corporation
By: ________________________________
Name: Danielle Foster
Its: President