November 14, 2023 Item #5
City of Santa Clara
City Councill
November 14, 2023
Item #5: 23-952
CITY OF 1601 Civic Center Drive
Family Affordable Housing
1852 Funding and Release of
THE MISSION CITY Indenture
Adam Marcus, Division Manager
Housing & Community Services Division
City of
Santa Clara
The Center of What's Possible
1601 Civic Center Drive
Proposed Actions
• Authorization to negotiate
and execute City loan
documents for a
previously approved
100% affordable housing
project
• Allocation of PHLA funds
• Release of land indenture
2 POST MEETING MATERIAL
1 November 14, 2023 Item #5
City of
Santa Clara
The Center of What's Possible
1601 Civic Center Drive
Lincoln Street Elevation
Approved Project
• Studios, 1-, 2-, 3- bedrooms
• 106 affordable rental units:
- 27 @ 30% AMI or Below
(Rapid Rehousing)
Civic Center Drive Elevation
- 26 @ 30% AMI or Below
- 53 @ 50% AMI or Below
• On-site services, community
room, courtyard, dining area
3 City of
Santa Clara
The Center of What's Possible
1601 Civic Center Drive
Background & Prior Funding Actions
1. $1.6M Settlement Set Aside January 12, 2018
2. Development Application September 2, 2021
3. Planning Commission August 3, 2022
4. City Council Entitlement November 15, 2022
5. Architectural Review Approval December 14, 2022
6. County Funding Commitment May 16, 2023
4 4
2 November 14, 2023 Item #5
City of
Santa Clara
The Center of What's Possible
1601 Civic Center Drive
Proposed Funding Sources (Permanent)
Tax Credit Equity $43,111,764
State Affordable Housing and Sustainable Communities Funds $21,600,000 County of Santa Clara - Measure A $12,100,000
Multi-family Housing Revenue Bonds $10,149,000
Deferred Developer Fee $7,500,000
City of Santa Clara $5,400,000
Housing Trust Silicon Valley - Apple Funds $4,750,000
Total $104,610,764
5 5
City of
Santa Clara
The Center of What's Possible
1601 Civic Center Drive
City Loan
Affordable Housing Capital Fund $4,944,484
PLHA $ 455,516
Total $5,400,000
City Loan Per Unit $ 50,000
Developer Fee
GP Equity Contribution $7,500,000
Capitalized $2,500,000 (Capped by TCAC)
Total $10,000,000
6 6
3 Item #5
November 14, 2023
City of
Santa Clara
The Center of What's Possible
1601 Civic Center Drive
Land Indenture
• In 1964 the City recorded an indenture on the property to restrict the use of approximately one-third of the site as a front set back • This was consistent with site layouts with larger front setbacks in the Civic Center Plan
• Removal of the indenture supports the development of an 100% affordable housing project
• Removal is subject to City Council action
• The County's funding commitment was contingent on the City releasing the indenture
7 City of
Santa Clara
The Center of What's Possible
1601 Civic Center Drive
Timeline
PLHA Expenditure Deadline April 30, 2023
Affordable Housing Sustainable Communities Program Spring 2024 Tax Credit Allocation September 2024
Start Construction June 2025
Anticipated Completion Fall 2026
Start Lease Up October 2026
8 8
4 November 14, 2023 Item #5
City of
Santa Clara
The Center of What's Possible
Recommendation
1. Adopt a resolution approving and authorizing the City Manager to negotiate and execute a Loan Agreement with Charities Housing for a loan of up to $4,944,484 to support the construction of 106 affordable housing units and 2 manager units located at 1601 Civic Center Drive; to make modifications to the Loan Agreement and attachments consistent with the Term Sheet and as reviewed by the City Attorney for form and consistency; to execute all documents necessary (including Deeds of Trust, Promissory Notes, and Affordable Housing Agreements) to implement the Loan Agreement and close escrow; and to execute documents that will release a recorded indenture that currently limits the site's developable area. This funding commitment shall be contingent upon National Environmental Policy Act (NEPA) clearance from HUD.
9 City of
Santa Clara
The Center of What's Possible
Recommendation
2. Approve the FY 2023/24 budget amendment in the City Affordable Housing Capital Fund to increase the Civic Center Drive - Low Income Housing Project appropriation by $3,344,484 and reduce the unrestricted ending fund balance by $3,344,484 (five affirmative Council votes required for the use of unused balances.
3. Direct the County of Santa Clara (PLHA fund administrator) to allocate up to $455,516 from the City's Permanent Local Housing Allocation (PLIA) allocation to further support the construction of affordable housing at 1601 Civic Center Drive. This funding commitment shall be contingent upon National Environmental Policy Act (NEPA) clearance from HUD. 10 10
5 November 14, 2023 Item #5
City of Santa Clara
City Council
November 14, 2023
Item #5: 23-952
10 1601 Civic Center Drive
CITY
Family Affordable Housing
1852 Funding and Release of
THE MISSION CIT Indenture
Adam Marcus, Division Manager
Housing & Community Services Division
11 6