3 0
0 4
DISCUSSION
City of San Bernardino
Request for Council Action
Date: December 17, 2025
To: Honorable Mayor and City Council Members
From: Gabriel Elliott, Director of Community Development & Housing Department: Community Development & Housing
Subject: Conditional Commitment of $5M in HOME Funds, a $1.2M Loan in Low-Mod Funds for Impact Fees; and a Land Loan
in the amount of $3.59 Million for the Purchase Price of the City Property; and Approving an Option to Purchase the
Real Property to JHC Acquisitions LLC for the
Development of Affordable Housing at Surplus Land Act
Site 12 located at 5th Street and Meridian Ave (Ward 6) Recommendation:
It is recommended that the Mayor and City Council of San Bernardino, California adopt Resolution No.2025-407:
1. Authorize a Conditional Funding Commitment of $5 million in HOME Investment Partnerships Program funds to West Fifth Street Housing Partners LP, (“Partnership”) an affiliate of Jamboree Housing Corporation, a California nonprofit public benefit corporation (“JHC”) for the development of affordable housing. The 106 unit affordable housing project (“Project”) will be located on approximately 3.5 acres of City-owned surplus land, identified as Site 12 (the “Property”), along with an adjacent privately owned parcel to be purchased by JHC (APN 0142-522-10);
2. Authorize the issuance of a City Promissory Note to the Partnership in the amount of $1.2 million to be funded with Low- and Moderate-Income Housing Asset Funds (“Low-Mod Funds”), to cover eligible project-related impact and permit fees, to be repaid from a portion of the residual receipts of the Project’s operations;
3. Authorize the City to enter an Option to Purchase Agreement with the Partnership for Site 12, to provide the Partnership with a right to purchase the Property for fair market value ($3.59 million), using seller carryback financing 3 0
0 4
under which the purchase price will be paid from residual receipts of the Project's operations in accordance with a Promissory Note secured against the Property with a deed of trust. The Option to Purchase Agreement is intended to provide “site control” of the Property and thereby enable the Partnership to apply for necessary project financing while the City will maintain ownership of the Property until all Project financing is secured; provided, however, that the exercise of the option is subject to the City Council's approval of a final disposition and development agreement; and
4. Authorize the City Manager and City Attorney, or their designees, to take any further actions and execute any further agreements or documents as necessary including minor and substantive changes; provided that a final Disposition Development Agreement and the City HOME Loan, the City Land Loan, and the City Impact Fee Deferral Loan shall return to City Council for final approval.
City Manager's Comments
This appears to be a good project that will add a critical affordable housing project to the City.
Executive Summary
The City currently owns the properties located at 5th Street and North Meridian Avenue, collectively known as “Site 12,” (hereafter also referred to as the "Property") which includes Assessor’s Parcel Numbers (APNs): 0142-522-08, 0142-522-09, 0142- 522-11, 0142-522-12, 0142-522-13, 0142-522-14, 0142-522-15, 0142-522-16, 0142- 522-17, 0142-522-25, 0142-522-35, 0142-522-36, 0142-522-37, 0142-522-38, 0142- 522-41, and 0142-522-42. Site 12, situated just north of Foothill Boulevard, has been designated as excess property under the Surplus Land Act (“SLA”), indicating it is no longer needed for public use and may be made available for development. Specifically, it has been slated for affordable housing in partnership with Jamboree Housing Corporation (“JHC”).
The Project will include 106 apartment units that will be restricted to 12 extremely-low income households (earning at or below 30% of the San Bernardino County Area Median Income (“AMI”)), 12 households earning at or below 50% AMI, 34 households earning at or below 60% AMI, 47 households earning at or below 70% AMI, and one (1) unit reserved for an on-site manager.
To help facilitate the development of this Project, staff recommends approval of a Conditional Funding Commitment of $5 million in HOME Investment Partnership Program (“HOME”) funds.
Additional components of this commitment include a $3.59 million land carry-back loan from the City for purchase of Site 12, a $1.2 million development impact fee loan from the City’s Low-Mod Fund to help maintain the project’s construction schedule, and an Option to Purchase Real Property Agreement to provide the Partnership with the right 3 0
0 4
to purchase Site 12 with the land carry-back loan, and providing site control rights while maintaining City ownership until the transaction is closed. There is no impact to the General Fund and both the land loan and development impact fee loan will be repaid from a portion of the project’s residual receipts.
Background
The City owns 16 parcels, totaling 3.5 acres, located at 5th Street and Meridian Avenue, collectively known as Site 12. Site 12 has been designated for disposal under the Surplus Land Act (“SLA”), meaning it is considered excess property that the City no longer needs for public use and may be made available for development or other purposes. Site 12 includes the following Assessor’s Parcel Numbers (APNs): 0142- 522-08, 0142-522-09, 0142-522-11, 0142-522-12, 0142-522-13, 0142-522-14, 0142- 522-15, 0142-522-16, 0142-522-17, 0142-522-25, 0142-522-35, 0142-522-36, 0142- 522-37, 0142-522-38, 0142-522-41, and 0142-522-42.
On November 16, 2022, the City Council of the City of San Bernardino adopted Resolution No. 2022-234, which declared Site 12 surplus, pursuant to Government Code Section 54220 and issued Notices of Availability (“NOA”) on February 27, 2024.
On July 10, 2024, the City selected Jamboree Housing Corporation, a California non- profit corporation (“JHC”), to partner with the City to develop Site 12 for affordable housing. The proposed Project also includes adjacent parcel APN 0142-522-10, which is privately owned, for a total of approximately 3.8 acres (collectively, the “Site”). JHC is currently under contract to purchase the adjacent parcel.
On or about October 18, 2024, the California Department of Housing and Community Development (HCD) issued a letter to the City determining that the City had met all the requirements under the SLA for the purposes of disposing of Site 12.
On or about January 15, 2025, Site 12 was appraised at $3.59 million.
On or about March 5, 2025, the City approved the Exclusive Negotiating Agreement (“ENA”) between the City and JHC Acquisitions LLC, an affiliate of JHC, for the negotiation of the proposed development of Site 12 for affordable housing. With the inclusion of the adjacent parcel, the Proposed project will include 106 apartment units, with 105 units restricted to households earning below 80% AMI.
Discussion
Founded in 1990 and headquartered in Irvine, CA, Jamboree Housing Corporation is an award-winning nonprofit development company specializing in creating and operating affordable housing with supportive services for working families, children, seniors, and people with special needs. As a recognized Community Housing Development Organization (“CHDO”) at the State level and in various California cities, Jamboree has an established track record of delivering high-quality developments that enhance communities.
3 0
0 4
The Project, as proposed, will consist of a 106-unit development that is contemplated as one phase, but may be developed in two phases due to financing constraints. The development will consist of 35 one-bedroom units, 30 two-bedroom units, 41 three- bedroom units. Restricted by the County of San Bernardino, approximately 22 units will be targeted for transitional age youth (“TAY”) individuals experiencing homelessness or at risk of homelessness at or below 30% of the AMI, complementing the City’s SB HOPE Campus Navigation Center development and other initiatives aimed at addressing homelessness. The remaining 93 units will serve large families with incomes at or below 70% AMI. One (1) three-bedroom unit will be set-aside for the on- site manager. Surface parking will be provided at a ratio of approximately 1.5 stalls per unit. Proposed community amenities include a community room and kitchen, a computer lounge, a swimming pool, and a tot lot.
The Conditional Funding Commitment of $5 million of HOME funds includes a future City HOME Loan, which will be structured as a residual receipts loan and secured by the Site to support the Project’s development. Approval of the final HOME Loan documents will be determined following completion of all federal HOME requirements under 24 CFR 92.2 and 24 CFR 92.250(b), including the market demand assessment, environmental review, financing plan, and subsidy layering analysis. HOME funds are necessary to close the remaining gap between total development costs and available equity and debt, ensuring the Project meets feasibility thresholds required for construction. Repayment will occur only from available cash flow after operating expenses and senior obligations, which is consistent with federal guidelines and typical for affordable housing developments. The City HOME Regulatory Agreement will restrict 20 units as follows: four (4) Low HOME units and 16 High HOME units.
The Conditional Funding Commitment also includes the City Land Loan secured by the Site and equates to the sales price established for Site 12 to the Partnership. The site was appraised at $3.59 million on January 15, 2025, and this value constitutes the City’s financial participation through the land. The City Land Loan will maintain project feasibility by reducing the cost burden associated with land acquisition. The terms of the land conveyance will be finalized through further negotiations pursuant to an Option to Purchase Real Property Agreement and will require City Council approval. The City Land Loan Regulatory Agreement will restrict 51 units to Low Income households.
The Project is required to pay several City-imposed impact and permit fees prior to the issuance of building permits. To avoid financing delays and ensure the Project remains feasible, staff recommend providing a $1.2 million Impact Fee Loan funded with Low Mod Funds, secured by the Property, to cover eligible City fees. Using Low Mod funds for this purpose supports the Project and ensures it can satisfy fee obligations without jeopardizing construction timelines. This loan would also allow the Developer to pay required fees at the appropriate time while preserving limited construction financing for direct development costs. The loan will be memorialized through a Promissory Note and repaid from a portion of residual receipts generated by the Project. The Impact Fee Loan Regulatory Agreement will restrict 24 units as follows: 12 units restricted to extremely-low income households earning up to 30% AMI and 12 units restricted to 3 0
0 4
very-low income households earning up to 50% AMI.
The Option to Purchase Real Property Agreement governs the terms under which the Partnership may acquire Site 12 and forms the framework for completing the City Land Loan. The Option provides the Partnership with necessary site control to advance financing and meet program requirements, while allowing the City to ensure all due diligence, negotiations, and protections are satisfied prior to conveyance. Final terms will be returned to the City Council for approval. The Option structure is appropriate for this type of development, balancing the City’s stewardship responsibilities with the need to facilitate affordable housing production.
With the land appraised at $3.59 million and the City’s combined conditional funding commitments including the HOME loan, City Land Loan and City Impact Fee Loan through Low-Mod Funds, the City’s proposed investment in the Project is approximately $9.79 million subject to final underwriting and approvals. 2021-2025 Strategic Targets and Goals
Approving the conditional commitment of funding aligns with Key Strategic Target and Goal No. 3: Improved Quality of Life. Partnering with the Partnership to develop affordable housing will reduce the number of blighted city-owned properties while providing essential affordable housing opportunities to the community.
Fiscal Impact
There is no impact on the General fund, the Conditional approval of the $3.59 million loan for the value of Site 12, and of the $5M HOME Investment Partnership Program funding commitment. The $1.2 million impact fee loan will be funded from the City’s Low- and Moderate-Income Housing Asset Funds but repaid from residual receipts from the Project.
Conclusion
It is recommended that the Mayor and City Council of San Bernardino, California adopt Resolution No.2025-407:
1. Authorize a Conditional Funding Commitment of $5 million in HOME Investment Partnerships Program funds to West Fifth Street Housing Partners LP, (“Partnership”) an affiliate of Jamboree Housing Corporation, a California nonprofit public benefit corporation (“JHC”) for the development of affordable housing. The 106 unit affordable housing project (“Project”) will be located on approximately 3.5 acres of City-owned surplus land, identified as Site 12 (the “Property”), along with an adjacent privately owned parcel to be purchased by JHC (APN 0142-522-10);
2. Authorize the issuance of a City Promissory Note to the Partnership in the amount of $1.2 million to be funded with Low- and Moderate-Income Housing Asset Funds (“Low-Mod Funds”), to cover eligible project-related impact and permit fees, to be repaid from a portion of the residual receipts of the Project’s operations; 3 0
0 4
3. Authorize the City to enter an Option to Purchase Agreement with the Partnership for Site 12, to provide the Partnership with a right to purchase the Property for fair market value ($3.59 million), using seller carryback financing under which the purchase price will be paid from residual receipts of the Project's operations in accordance with a Promissory Note secured against the Property with a deed of trust. The Option to Purchase Agreement is intended to provide “site control” of the Property and thereby enable the Partnership to apply for necessary project financing while the City will maintain ownership of the Property until all Project financing is secured; provided, however, that the exercise of the option is subject to the City Council's approval of a final disposition and development agreement; and
4. Authorize the City Manager and City Attorney, or their designees, to take any further actions and execute any further agreements or documents as necessary including minor and substantive changes; provided that a final Disposition Development Agreement and the City HOME Loan, the City Land Loan, and the City Impact Fee Deferral Loan shall return to City Council for final approval.
Attachments
Attachment 1 Exclusive Negotiating Agreement
Attachment 2 Resolution No. 2025-407
Attachment 3 Option to Purchase Real Property
Ward:
Sixth Ward
Synopsis of Previous Council Actions:
On November 16, 2022, the City Council of the City of San Bernardino adopted Resolution No. 2022-234, which declared the Property surplus, pursuant to Government Code Section 54220 and issued Notices of Availability (“NOA”) on February 27, 2024.
On July 10, 2024, the City selected Jamboree Housing Corporation, a California non- profit corporation, to partner with the City to develop approximately 3.5 acres of the Property for affordable housing (“Project”).
On or about October 18, 2024, the California Department of Housing and Community Development (HCD) issued a letter to the City determining that the City had met all the requirements under the Surplus Land Act (SLA) for the purposes of disposing of the Property.
On or about January 15, 2025, the 3.5 acres of city-owned surplus land known as site 12 was appraised at $3.59 million.
On or about March 5, 2025, the City approved the Exclusive Negotiating Agreement (ENA) between the City and JHC Acquisitions LLC, an affiliate of Jamboree Housing 3 0
0 4
Corporation, a California non-profit public benefit corporation, for the development of approximately 3.5 acres of city-owned surplus land, known as site 12, for affordable housing.
CC: Eric Levitt, City Manager