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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: July 2, 2025
To: Honorable Mayor and City Council Members
From: Bill Gallardo, Interim City Manager
Department: City Manager’s Office
Subject: Join the California Community Housing Agency (CalCHA) Middle-Income Rental Housing Program (All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2025-323:
1. Authorizing the City to become a member of the California Community Housing Agency (CalCHA); and
2. Approving and authorizing the City Manager to enter into a Joint Exercise of Powers Agreement relating to the Agency and one or more Public Benefit Agreements with the Agency; and
3. Approving the Agency’s issuance of Revenue Bonds for the new construction of essential middle-income housing projects within City limits.
Executive Summary
The proposed action would authorize the City of San Bernardino to join the California Community Housing Agency (CalCHA), a Joint Powers Authority formed to support workforce housing. By becoming a member, the City can facilitate new housing projects using tax-exempt revenue bonds issued by CalCHA—at no financial risk to the City.
This partnership also allows the City to take advantage of state incentives, including Assembly Bill 2011, to help meet the growing need for middle-income housing. The initiative aligns with the City’s housing priorities and supports long-term economic and community development.
Background
The Essential Middle-Income Affordable Housing Program, in partnership with the California Community Housing Agency (CalCHA), leverages state legislation— including Assembly Bill 2011—to support the development of mixed-use workforce housing. AB 2011 allows qualifying projects in commercial zones to proceed with by- 2 3
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right approval, streamlining entitlements by removing discretionary reviews and significantly reducing approval timelines.
Projects under this program must be new construction and are required to use prevailing-wage labor, creating an estimated 700 construction jobs per development.
Long-term affordability is protected through recorded 55-year covenants, with rents set below the market rate and a guaranteed minimum 10% rent discount. These units are targeted at households earning between 60% and 110% of the area median income (AMI), providing much-needed housing for residents who often earn too much to qualify for traditional affordable housing but are priced out of market-rate units.
Discussion
Each development will also include a commercial component, which will contribute to local revenue through property taxes and retail activity. Projects must comply with all City planning and permitting requirements, ADA standards, and standard business and sales tax regulations, ensuring consistency with local policies and oversight.
One potential future site for the project is located along 2nd Street, between Warm Creek and Mt. View Avenue. This location is well-positioned near major transportation corridors and is just over ¼ mile from a transit center, which qualifies it under Article 3 of AB 2011 for increased density (up to 80 units per acre) and potential parking reductions. Additionally, the site is within a five-mile radius of a significant concentration of employment, making it a strong candidate for workforce housing development.
A proposed mixed-use development at this site would include approximately 230 to 236 residential units and about 4,000 square feet of retail space, potentially accommodating a market and deli. This concept aims to help address the critical shortage of middle-income housing while supporting local businesses, stimulating economic activity, and fostering a walkable, integrated community.
Strategic Targets and Goals
This initiative advances the City’s goals to expand middle-income housing, support local job creation, and encourage investment in underutilized areas. The project’s location near a transit center promotes walkable, higher-density development. By partnering with CalCHA, the City can achieve these outcomes without financial impact to the General Fund.
Fiscal Impact
The City will not incur any financial obligation or assume debt through participation in CalCHA. The agency issues tax-exempt revenue bonds independently, with no risk or liability to the City. Staff time will be needed for permitting and coordination. While CalCHA projects may receive partial property tax exemptions, revenue can still be generated from commercial components and leasehold assessments. This structure supports workforce housing without impacting the City’s General Fund. 2 3
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Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California adopt Resolution No. 2025-323:
1. Authorizing the City to become a member of the California Community Housing Agency (CalCHA); and
2. Approving and authorizing the City Manager to enter into a Joint Exercise of Powers Agreement relating to the Agency and one or more Public Benefit Agreements with the Agency; and
3. Approving the Agency’s issuance of Revenue Bonds for the new construction of essential middle-income housing projects within City limits.
Attachments
Attachment 1 - Resolution No. 2025-323
Attachment 2 - CalCHA Public Benefit Agreement
Attachment 3 - Assembly Bill No. 2011
Attachment 4 - CalCHA’s Essential Housing Program
Attachment 5 - SBH - Concept Site Plan
Attachment 6 - Vicinity of Key Employers Distance to Site Attachment 7 - Annadel Apartments Brochure, Santa Rosa
Ward:
All Wards
Synopsis of Previous Council Actions: