Agenda packet — Soledad City Council, February 4, 2026 (part 2 of 2)

17.39.150 Effect of proposal for waiver or reduction of development standards.

A proposal for the waiver or reduction of development standards shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled pursuant to Section 65915(d) of the Government Code.

17.39.160 Density bonus allowance for housing development with affordable housing component.

A. If the requirements of Sections 17.39.035 and 17.39.0840 (property development standards) are met, then the affordable housing developer is entitled to a density bonus pursuant to Section 65915(f) of the Government Code as follows in Table 17.39.100-1.

Table 17.39.100-1
Density Bonus Allowance for Housing Development Projects with Affordable Housing Component

HOUSEHOLD
INCOME

CATEGORY

MINIMUM

PERCENT OF
VERY LOWINCOME
UNITS

MINIMUM

DENSITY
BONUS

ADDITIONAL

DENSITY

BONUS FOR
EACH 1%

INCREASE IN
VERY LOWINCOME
UNITS

MAXIMUM

PERCENT

OF VERY
LOWINCOME
UNITS

MAXIMUM

POSSIBLE

DENSITY
BONUS
Very-LowIncome
Housing
10% of entire
development
15% 1% 30% of
entire
development
365%
(max.
combined)
C. All density calculations resulting in fractional units shall be rounded up to the next whole number (Government Code Section 65915(g)(2)).

17.39.230 Floor area ratio density bonus.

A. A floor area ratio density bonus may be granted to an eligible housing development, upon request of the developer, in lieu of a density bonus awarded based on dwelling units per acre.

1. In calculating the floor area ratio bonus pursuant to this section, the allowable gross residential area in square feet shall be the product of all the following amounts:
a. The allowable residential base density in dwelling units per acre. b. The site area in square feet, divided by forty-three thousand five hundred sixty. c. Two thousand two hundred fifty.

2. The city council shall not impose any parking requirement on an eligible housing development in excess of 0.1 parking spaces per unit that is affordable to persons and families with a household income equal or less than one hundred twenty percent of the area median income and 0.5 parking spaces per unit that is offered at market rate.

3. An applicant seeking to develop an eligible residential development shall be allowed to calculate impact fees based on square feet, instead of on a per-unit basis. Any affordable housing impact fees generated by the housing development, including inclusionary zoning fees and in-lieu fees, will not be levied on the housing development's affordable units (Government Code Section 65915.1).

4. If an eligible housing development is zoned for mixed-use purposes, any floor area ratio requirement under a zoning ordinance or land use element of the general plan applicable to the nonresidential portion of the eligible residential development, shall 261
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continue to apply notwithstanding the award of a floor area ratio bonus in accordance with this section.

5. An applicant for a floor area ratio bonus may also submit to the city a proposal for specific incentives or concessions pursuant to Section 17.39.0180.

17.39.240 Affordable housing incentives.

A. Subsections 65915(d), (j), (k) and (l) of the Government Code govern the following provisions regarding affordable housing incentives.

B. Qualifications for Incentives. Subject to Section 17.39.2600200, all of the following applicable requirements must be satisfied to be granted an incentive(s) pursuant to Section

17.39.026000 and Section 17.39.2500170:

1. The applicant for an incentive must also be an applicant for a density bonus and qualify for a density bonus pursuant to Section 17.39.035040 (Government Code Section 65915(d)(1)).

2. A specific written proposal for an incentive(s) must be submitted with the application for density bonus (Government Code Section 65915(b)(1) and (d)(1)).

3. If an incentive(s) pursuant to Sections 17.39.2600200 and 17.39.2700190 is sought, the applicant must establish that each requested incentive would result in identifiable and actual cost reductions for the qualified housing development (Government Code Section 65915(k)(1) and 65915(k)(3)).

4. If an incentive(s) pursuant to Subsection 17.39.260.0200AB.2 is sought, the applicant must establish that requirements of that section are met (Government Code Section 65915(k)(2)).

5. If an additional incentive for a childcare facility is sought pursuant to Section

17.39.2700120, the applicant must establish that requirements of that section are met (Government Code Section 65915(h)(1)(B)).

6. The granting of an incentive shall not be interpreted, in and of itself, to require a general plan amendment, zoning change, study, or other discretionary approval (Government Code Section 65915(j)). An incentive is applicable only to the project for which it is granted. An applicant for an incentive may request a meeting with the community development director (director) and, if requested, the director will meet with the applicant to discuss the proposal (Government Code Section 65915(d)(1)).

C. Types of Incentives. For the purposes of this chapter, incentive means any of the following:

1. A reduction in site development standards or a modification of development code requirements or design guidelines that exceed the minimum building standards approved by the California Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a reduction in setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwise be required that results in identifiable and actual cost reductions, to provide for affordable housing 262
costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in Section 17.39.1300250. (Government Code Section 65915(k)(1)).

2. Approval of mixed-use zoning in conjunction with the qualified housing development if commercial, office, industrial or other land uses will reduce the cost of the qualified housing development and if the commercial, office, industrial or other land uses are compatible with the qualified housing development and the existing or planned development in the area where the proposed qualified housing development will be located (Government Code Section 65915(k)(2)).

3. Other regulatory incentives proposed by the affordable housing developer or the city that result in identifiable and actual cost reductions, to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in Section 17.39.1300250. (Government Code Section 65915(k)(3)).

4. Nothing in this section limits or requires the provision of direct financial incentives by the city for the qualified housing development, including the provision of publicly owned land, or the waiver of fees or dedication requirements (Government Code Section 65915(l)).

17.39.250 Number of incentives granted.

A. Subject to Section 17.39.035200, the applicant who meets the requirements of Section

17.39.035200 shall receive the following incentives and as shown in Table 17.39.0190250-

1. 1. One incentive or concession for qualified housing development projects that include at least five percent for very low-income households, at least ten percent of the total units for low-income households, or at least ten percent for persons and families of moderate-income households in a development in which units are for sale (Government Code Section 65915(d)(2)(A)).

2. Two incentives or concessions for qualified housing development projects that include at least ten percent for very low-income households, at least seventeen percent of the total units for low-income households, or at least twenty percent for persons and families of moderate-income households in a development in which the units are for sale (Government Code Section 65915(d)(2)(B)).

3. Three incentives or concessions for qualified housing development projects that include at least fifteen percent for very low-income households, at least twenty-four percent of the total units for low-income households, or at least thirty percent for persons and families of moderate-income households in a development in which the units are for sale (Government Code Section 65915(d)(2)(C)).

4. Four Five incentives or concessions for qualified housing development projects pursuant to Section 17.39.170011. If the project is located within one-half mile of a major transit stop as defined in subdivision (b) of Section 21155 of the Public Resources Code, the applicant shall also receive a height increase of up to three additional stories, or thirty-three feet (Government Code Section 65915(d)(2)(D)). 263
a. Where one hundred percent of all units in the development, including total units and density bonus units, but exclusive of manager’s unit or units, are for lower income households, the project is eligible for five incentives or concessions, with the exception that up to twenty percent of the units in the development may be for moderate income (Government Code Section 65915 (b)(1)(G) and (d)(2)(D)).

5. One incentive or concession for projects that include at least twenty percent of the total units for lower income students in a student housing development (Government Code Section 65915(d)(2)(E)).

6. Four incentives or concessions for projects that include at least sixteen percent of the units for very low income households or at least forty-five percent for persons and families of moderate income in a development in which the units are for sale (Government Code Section 65915(d)(2)(F)).

B. A qualified housing development proposal that includes a childcare facility shall be granted an additional incentive that contributes significantly to the economic feasibility of the construction of the childcare facility (Government Code Section 65915(h)(1)(B)).

Table 17.39.250-1
Incentive Allowances for Qualified Housing Developments INCOME CATEGORY MINIMUM % OF AFFORDABLE UNITS
Very Low Income 5% 10% 15% 16% 80%-
100%
Low Income 10% 17% 24% 80-100%
Moderate Income: ForSale Units 10% 20% 30% 45% 45%
Moderate Income: ForRent Units n/a n/a n/a n/a Up to
20%
Up to 20%
45%
Lower-Income Student
Housing
20% 23% n/a n/a n/a n/a
Incentives/Concessions
Allowed
1 2 3 44 5

17.39.260 Criteria for denial of application for incentives.

A. Except as otherwise provided in this chapter or by state law, if the requirements of Section

17.39.240 are met, the city shall grant the incentive(s) that are authorized by Section

17.39.250 unless a written finding, based upon substantial evidence, is made with respect to any of the following, in which case the city may refuse to grant the incentive(s):

1. The incentive does not result in identifiable and actual cost reductions, consistent with Section 17.39.240190N to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in Section 17.39.035230 (Government Code Section 65915(d)(1)(A)). 264

2. The incentive would have a specific, adverse impact, as defined in Government Code Section 65589.5(d)(2), upon the public health and safety on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact without rendering the development unaffordable to low- and moderate-income households (Government Code Section 65915(d)(1)(B); Government Code Section 65915 (d)(3)).

3. The incentive would be contrary to state or federal law (Government Code Section 65915(d)(1)(C)).

4. The community has adequate childcare facilities as demonstrated by substantial evidence, in which case the additional incentive for a childcare facility pursuant to Section 17.39.1800200 may be denied (Government Code Section 65915(h)(3)).

17.39.270 Waiver or modification of development standards.

A. Requirements for Waiver or Modification of Development Standards.

1. Application. To qualify for a waiver or reduction of one or more development standards, the applicant must submit a written application (together with an application for a qualified housing development) that states the specific development standard(s) sought to be modified or waived and the basis of the request(Government Code Section 65915(e)(1)). An applicant for a waiver or modification of development standard(s) pursuant to this section may request a meeting with the director to review the proposal.

If requested, the director shall meet with the applicant (Government Code Section 65915(e)(1)). An application for the waiver or reduction of development standard(s) pursuant to this section shall neither reduce nor increase the number of incentives to which the applicant is entitled pursuant to Section 17.39.026500 (Government Code Section 65915(e)(2)).

2. Findings. All the following findings must be made for each waiver or reduction requested:
a. The development standard for which a waiver or reduction is requested will have the effect of physically precluding the construction of the proposed qualified housing development at the densities or with the incentives permitted under this chapter (Government Code Section 65915(e)(1)).
b. The requested waiver or reduction of a development standard will not have a specific, adverse impact, as defined in Government Code Section 65589.5(d)(2), upon the health or safety or, if such a specific, adverse impact exists, there is a feasible method to satisfactorily mitigate or avoid the specific, adverse impact (Government Code Section 65915(e)(1)).
c. The requested waiver or reduction of a development standard will not have an adverse impact on any real property that is listed in the California Register of Historical Resources (Government Code Section 65915(e)(1)). d. The requested waiver or reduction of a development standard is not contrary to state or federal law (Government Code Section 65915(e)(1)). 265

3. Additional Waivers or Modifications of Development Standards. A housing development that receives a waiver from maximum controls on density pursuant to Section 17.39.2301790 is only eligible for a waiver or reduction in development standards as provided in Section 17.39.2301790.A, unless the city agrees to additional waivers or reductions of development standards.

4. Granting Application for Waiver or Modification of Development Standards. If the requirements of Section 17.39.2900210 are satisfied, the application for waiver or modification of development standard(s) shall be granted, and the city shall not apply a development standard that will have the effect of physically precluding the construction of a qualified housing development at the densities or with the incentives permitted by this chapter (Government Code Section 65915(e)(1)).

17.39.280 Parking standard modifications for qualified housing developments.

A. Requirements for Parking Standard Modifications. Parking standard modifications pursuant to Section 17.39.2700240 are available only for qualified housing developments. An application for parking standard modifications stating the specific modification requested pursuant to Section 17.39.2700240 must be submitted with the qualified housing development application (Government Code Section 65915(p)(6)).

B. Parking Standard Modifications. If the requirements of Section 17.39.2700240 are met, the vehicular parking ratio, inclusive of parking for persons with a disability and guests, shall not exceed the following ratios (Government Code Section 65915(p)(1)), except where noted under Section 17.39.280240.C (exceptions):

1. Zero to one bedroom: one on-site parking space.

2. Two to three bedrooms: one and one-half on-site parking spaces.

3. Four and more bedrooms: two and one-half on-site parking spaces.

4. One bedspace in a student housing development: zero parking spaces.

C. Exceptions. Upon request of the applicant, the following maximum parking standards shall apply, inclusive of parking for persons with a disability and guests, to the entire housing development subject to this chapter, as required by Government Code Section 65915(p)(2):

1. A maximum of one-half parking spaces per bedroom shall apply when all the following conditions apply:
a. The development includes either:
i. At least eleven percent very low-income units for housing developments meeting the criteria in Section 17.39.016000; or
ii. At least twenty percent low-income units for housing developments meeting the criteria in Section 17.39.016000; or
iii. At least forty percent moderate-income units for housing developments meeting the criteria in Section 17.39.016000.
b. The development is located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code. 266
c. There is unobstructed access to the major transit stop from the development. A development shall have unobstructed access to a major transit stop if a resident is able to access the major transit stop without encountering natural or constructed impediments which may include, but are not limited to, freeways, rivers, mountains, and bodies of water, but does not include residential structures, shopping centers, parking lots, or rails used for transit.

2. No vehicular parking standards shall apply when all any of the following conditions apply:
a. The development consists solely of rental units, exclusive of a manager's unit or units, with an affordable housing cost to lower-income families, as provided in Section 50052.5 of the Health and Safety Code.
b. The development is located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code and there is unobstructed access to the major transit stop from the development. c. There is unobstructed access to the major transit stop from the development. A development shall have unobstructed access to a major transit stop if a resident is able to access the major transit stop without encountering natural or constructed impediments which may include, but are not limited to, freeways, rivers, mountains, and bodies of water, but does not include residential structures, shopping centers, parking lots, or rails used for transit.

3. No vehicular parking standards shall apply when all the following conditions apply:
a. The development consists solely of rental units, exclusive of a manager's unit or units, with an affordable housing cost to lower-income families, as provided in Section 50052.5 of the Health and Safety Code.
c. b. The development is for individuals who are sixty-two years of age or older and which complies with Sections 51.2 and 51.3 of the Civil Code. d. c. The development shall have either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day.

4. No minimum vehicular parking standards shall apply when all the following conditions apply:
a.The development consists solely of rental units, exclusive of a manager's unit or units, with an affordable housing cost to lower-income families, as provided in Section 50052.5 of the Health and Safety Code.
e. d. The development is either:
i. A special needs housing development, as defined in Section 51312 of the Health and Safety Code, or
ii. A supportive housing development, as defined in Section 50675.14 of the Health and Safety Code.
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c. If the development is a special needs housing development shall have either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day.

D. If the total number of parking spaces required for the qualified housing development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this section, "on-site parking" may be provided through tandem parking or uncovered parking, but not through on-street parking (Government Code Section 65915(p)(45)).

E. Except as otherwise provided in this section, all other provisions of Chapter 19.82 (offstreet parking and loading) applicable to residential development apply.

F. An applicant may request additional parking incentives beyond those provided in this section if applied for pursuant to Section 17.39.2700160 (Government Code Section 65915(p)(56)).

G. Notwithstanding allowances in Section 17.39.2700240, if the city or an independent consultant has conducted an area-wide or jurisdiction-wide parking study in the last seven years, then the city may impose a higher vehicular parking ratio not to exceed the ratio described in Section 17.39.2700240, based on substantial evidence found in the parking study that includes, but is not limited to, an analysis of parking availability, differing levels of transit access, walkability access to transit services, the potential for shared parking, the effect of parking requirements on the cost of market-rate and subsidized developments, and the lower rates of car ownership for low- and very low- income individuals, including seniors and special-needs individuals. The city shall pay the costs of any new study. The city shall make findings, based on a parking study completed in conformity with this paragraph, supporting the need for the higher parking ratio (Government Code Section 65915(p)(7)).

17.39.290 Density bonus and affordable housing incentive program.

A. Project Design and Phasing. Projects seeking an affordable housing benefit pursuant to this chapter must comply with the following requirements, unless otherwise specified in writing by the Director:

1. Location/Dispersal of Units. Affordable units shall be reasonably dispersed throughout the development where feasible and shall contain on average the same (or greater) number of bedrooms as the market-rate units.

2. Phasing. If a project is to be developed in phases, each phase must contain the same or substantially similar proportion of affordable units and market-rate units.

3. Exterior Appearance. The exterior appearance and quality of the affordable units must be similar to the market-rate units. The exterior materials and improvements of the affordable units must be similar to, and architecturally compatible with, the market-rate units.

B. Application Requirements. An application for one or more affordable housing benefits must be submitted as follows:
268

1. Each affordable housing benefit requested must be specifically stated in writing on the application form provided by the city.

2. The application must include the information and documents necessary to establish that the requirements of this chapter are satisfied for each affordable housing benefit requested, including:
a. For density bonus requests, that the requirements of Section 17.39.0540 are met; b. For incentive requests, that the requirements of Section 17.39.160 are met; c. For development standard waiver or modification requests, that the requirements of Section 17.39.2700 are met; and/or
d. For parking standard modification requests, that the requirements of Section

17.39.2800 are met.

3. The application must be submitted concurrently with a complete application for a qualified housing development. When notifying the applicant for a density bonus whether the application is complete, the city shall also notify the applicant of:
a. The amount of density bonus for which the applicant is eligible: and b. If a parking ratio is requested by the applicant, the parking ratio for which the applicant is eligible; and
c. If the applicant requests incentives or concessions, or waivers or reductions of development standards, the city/county will notify the applicant whether the applicant has provided adequate information for the city/county to make a determination as to those incentives, concessions, or waivers or reductions of development standards.

4. The application must include a site plan that complies with and includes the following:
a. For senior citizen housing development projects, the number and location of proposed total units and density bonus units.
b. For all qualified housing development projects other than senior citizen housing development projects, the number and location of proposed total units, affordable units, and density bonus units. The density bonus units shall be permitted in geographic areas of the qualified housing development other than the areas where the affordable units are located (Government Code Section 65915(i)). c. The location, design, and phasing criteria required by Section 17.39.2250, including any proposed development standard(s) modifications or waivers pursuant to Section 17.39.2710.

5. The application for a qualified housing development must state the level of affordability of the affordable units and include a proposal for compliance with Section

17.39.310270 for ensuring affordability.

6. If a density bonus is requested for a qualified land donation pursuant to Section

17.39.220160, the application must show the location of the qualified land in addition to including sufficient information to establish that each requirement in Section

17.39.220160 has been met.
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7. If an additional density bonus or incentive is requested for a childcare facility pursuant to Section 17.39.18020 and/or Section 17.39.210, the application shall show the location and square footage of the childcare facility in addition to including sufficient information to establish that each requirement in Section 17.39.1820 and/or Section

17.39.28020.B. has been met.

C. An application for an affordable housing benefit under this chapter will not be processed until all of the provisions of this section are complied with as determined by the director and shall be processed concurrently with the application for the qualified housing development project for which the affordable housing benefit is sought. Prior to the submittal of an application for a qualified housing development, an applicant may submit to the director a preliminary proposal for affordable housing benefits. The director shall, within 90 days of receipt of a written proposal, notify the applicant of the director's preliminary response and schedule a meeting with the applicant to discuss the proposal and the director's preliminary response.

D. The city shall adjust the amount of density bonus and parking ratios awarded based on any changes to the project during development.

17.39.300 Determination on density bonus and affordable housing incentive program requirements.

A. The decision-making body for the underlying qualified housing development application is authorized to approve or deny an application for an affordable housing benefit in accordance with this chapter.

1. Affordable Housing Benefit Determinations. An application for an affordable housing benefit shall be granted if the requirements of this chapter are satisfied unless:
a. The application is for an incentive for which a finding is made in accordance with Section 17.39.2030; or
b. The underlying application for the qualified housing development is not approved independent of and without consideration of the application for the affordable housing benefit.

2. Affordable Housing Benefit Compliance Provisions. To ensure compliance with this chapter and state law, approval of an application for an affordable housing benefit may be subject to, without limitation:
a. The imposition of conditions of approval to the qualified housing development, including imposition of fees necessary to monitor and enforce the provisions of this chapter;
b. An affordable housing agreement and, if applicable, an equity-sharing agreement pursuant to Section 17.39.310270; and
c. Recorded deed restriction implementing conditions of approval and/or contractual or legally mandated provisions.

3. A decision regarding an affordable housing benefit application is subject to the appeal provisions of Section 19.46 (appeals).
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17.39.310 Affordable housing agreement and equity-sharing agreement.

A. General Requirements. No density bonus pursuant to Section 17.39.0540 shall be granted unless and until the affordable housing developer, or its designee approved in writing by the director, enters into an affordable housing agreement and, if applicable, an equity-sharing agreement, with the city or its designee pursuant to and in compliance with this section (Government Code Section 65915(c)). The agreements shall be in the form provided by the city, which shall contain terms and conditions mandated by, or necessary to implement, state law and this article. The director may designate a qualified administrator or entity to administer the provisions of this section on behalf of the city. The affordable housing agreement shall be recorded prior to, or concurrently with, final map recordation or, where the qualified housing development does not include a map, prior to issuance of a building permit for any structure on the site. The director is hereby authorized to enter into the agreements authorized by this section on behalf of the city upon approval of the agreements by city attorney/county counsel for legal form and sufficiency.

B. Affordable Housing Agreement.

1. The affordable housing developer of a qualified housing development based upon the inclusion of low-income and/or very low-income affordable rental units must enter into an agreement with the city to maintain the continued affordability of the affordable units for fifty-five years (for rental units) or forty-five years (for for-sale units), or a longer period if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program, as follows (Government Code Section 65915(c)(1)(A)).

2. Agreement Conditions. The agreement shall establish specific compliance standards and specific remedies available to the city if such compliance standards are not met.

The agreement shall, among other things, specify the number of lower-income affordable units by number of bedrooms; standards for qualifying household incomes or other qualifying criteria, such as age; standards for maximum rents or sales prices; the person responsible for certifying tenant or owner incomes; procedures by which vacancies will be filled and units sold; required annual report and monitoring fees; restrictions imposed on lower-income affordable units on sale or transfer; and methods of enforcing such restrictions.

3. Determining Rent. Rents for the lower-income affordable units that qualified the housing development for the density bonus pursuant to Section 17.39.0540 shall be set and maintained at an affordable rent (Government Code Section 65915(c)(1)). The agreement shall set rents for the lower-income density bonus units at an affordable rent, as defined in California Health and Safety Code Section 50053. a. Exceptions—Rental Units. In a rental housing development with one hundred percent of units affordable to lower-income households per Section 17.39.1710, rents would be governed as follows. At least twenty percent of the units in the development would be rented at affordable rents and the rent for the rest of the units would be set at an amount consistent with the maximum rent levels for a housing development that receives an allocation of state or federal low-income housing tax credits from the California Tax Credit Allocation Committee. 271

4. Senior Units. At least thirty-five senior citizen housing development units are maintained and available for rent or sale to senior citizens, as defined in Civil Code Section 51.3.

C. Equity Sharing Agreement.

1. The affordable housing developer of a qualified housing development based upon the inclusion of very low, low, or moderate-income affordable units in a development in which units are for sale must ensure that a for-sale unit that qualified the applicant for the award of the density bonus meets either of the following conditions:
a. The unit is initially occupied by a person or family of a very low, low, or moderate-income household. The unit is offered at an affordable housing cost as defined in the Health and Safety Code Section 50052.5 (Government Code Section 65915(c)(2)) and is subject to an equity sharing agreement. b. The unit is purchased by a qualified nonprofit housing corporation pursuant to a recorded contract that satisfies all of the requirements specified in paragraph (10) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code and that includes all of the following:
i. A repurchase option that requires a subsequent purchaser of the property that desires to resell or convey the property to offer the qualified nonprofit corporation the right to repurchase the property prior to selling or conveying that property to any other purchaser.
ii. An equity sharing agreement.
iii. Affordability restrictions on the sale and conveyance of the property that ensure that the property will be preserved for lower income housing for at least forty-five years for owner-occupied housing units and will be sold or resold only to persons or families of very low, low, or moderate income, as defined in Section 50052.5 of the Health and Safety Code.

2. The city shall enforce the equity-sharing agreement unless it is in conflict with the requirements of another public funding source or law (Government Code Section 65915(c)(2)). The equity-sharing agreement shall be between the city and the buyer or the developer and the buyer if the developer is the seller of the unit. The following provisions will be included in the equity-sharing agreement:
a. Upon resale, the seller of the unit shall retain the value of improvements, the down payment, and the seller's proportionate share of appreciation. The city shall recapture any initial subsidy, as defined in subparagraph (ii), and its proportionate share of appreciation, as defined in subparagraph (iii), which amount shall be used within five years for any of the purposes described in Health and Safety Code Section 33334.2(e) that promote homeownership (Government Code Section 65915(c)(2)(C)).
b. The city's initial subsidy shall be equal to the fair market value of the unit at the time of initial sale minus the initial sale price to the moderate-income household, plus the amount of any down payment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the 272
time of the resale shall be used as the initial market value (Government Code Section 65915(c)(2)(C)).
c. The city's proportionate share of appreciation shall be equal to the ratio of the city's initial subsidy to the fair market value of the unit at the time of initial sale (Government Code Section 65915(c)(2)(C)).
d. If the unit is purchased by a qualified nonprofit housing corporation pursuant to Section 17.39.310250.C, the city may enter into a contract with the qualified nonprofit housing corporation under which the qualified nonprofit housing corporation would recapture any initial subsidy and its proportionate share of appreciation if the qualified nonprofit housing corporation is required to use one hundred percent of the proceeds to promote homeownership for lower-income households as defined by Health and Safety Code Section 50079.5 within the city's jurisdiction (Government Code Section 65915(c)(2)(C)).

4. Criteria for Denial of Application for a Density Bonus and Incentive. An applicant is ineligible for a density bonus or any other incentives under this chapter if the housing development is proposed on any property that includes a parcel or parcels where rental dwelling units are; or, if the dwelling units have been vacated or demolished in the five-year period preceding the application, have been subject to:
a. A recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; or
b. Any other form of rent or price control through a public entity's valid exercise of its police power; or occupied by lower-income households, unless the proposed housing development replaces those units, and either of the following applies:
i. The proposed housing development, inclusive of the units replaced pursuant to this paragraph, contains affordable units at the percentages set forth in subdivision (2) below.
ii. Each unit in the development, exclusive of a manager's unit or units, is affordable to, and occupied by, a lower-income household.

This does not apply to an applicant seeking a density bonus for a proposed housing development if the applicant's application was submitted to, or processed by the city before January 1, 2015.
c. Replacement. The term "replace" in Section 17.39.310 means either of the following:
i. If any dwelling units described in paragraph (4) above are occupied on the date of application, the proposed housing development must provide at least the same number of units of equivalent size to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it will be rebuttably presumed that lower income renter households occupied these units in the same proportion of lower income renter households to all renter households within the jurisdiction, as determined by 273
the most recently available data from the United States Department of Housing and Urban Development's Comprehensive Housing Affordability Strategy database. For unoccupied dwelling units described in subparagraph (4) above in a development with occupied units, the proposed housing development will provide units of equivalent size to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as the last household in occupancy. If the income category of the last household in occupancy is not known, it will be rebuttably presumed that lower income renter households occupied these units in the same proportion of lower income renter households to all renter households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Development's Comprehensive Housing Affordability Strategy database.
ii. If all dwelling units described in paragraph (4) have been vacated or demolished within the five-year period preceding the application, the proposed housing development must provide at least the same number of units of equivalent size as existed at the highpoint of those units in the fiveyear period preceding the application to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those persons and families in occupancy at that time, if known. If the incomes of the persons and families in occupancy at the highpoint is not known, it must be rebuttably presumed that lowincome and very low-income renter households occupied these units in the same proportion of low-income and very low income renter households to all renter households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Development's Comprehensive Housing Affordability Strategy database.

If the replacement units will be rental dwelling units, these units are subject to a recorded affordability restriction for at least fifty-five years. If the proposed development is for-sale units, the units replaced are subject to an equity-sharing agreement pursuant to paragraph (3) above.
d. For any dwelling unit described in paragraph (4) that is or was, within the fiveyear period preceding the application, subject to a form of rent or price control through a local government's valid exercise of its police power and that is or was occupied by persons or families above lower income, the city may either:
i. Require that the replacement units be made available at affordable rent or affordable housing cost to, and occupied by, low-income persons or families.

If the replacement units will be rental dwelling units, these units are subject to a recorded affordability restriction for at least fifty-five years. If the proposed development is for-sale units, the units replaced are subject to paragraph (3).
ii. Minimum Affordable Housing Component and Childcare Facility. If an additional density bonus or incentive is granted because a childcare facility is 274
included in the qualified housing development, the affordable housing agreement shall also include the affordable housing developer's obligations pursuant to Section 17.39.1820 for maintaining a childcare facility, if not otherwise addressed through conditions of approval.

17.39.320 Density bonus or incentives for condominium conversion projects.

A. Requirements for Density Bonus or Incentive for Condominium Conversion Projects.

1. Applicant to convert apartments to a condominium project agrees to provide at least:
a. Thirty-three percent of the total units of the proposed condominium project to persons and families of moderate-income households, or
b. Fifteen percent of the total units of the proposed condominium project to persons and families of low-income households.

2. If applicant agrees to pay for the reasonably necessary administrative costs incurred by the city pursuant to this section, the city shall either:
a. Grant a density bonus, or
b. Provide other incentives of equivalent financial value (Government Code Section 65915.5(a)).

B. Definition of Density Bonus for Condominium Conversion Projects. If the requirements of Section 17.39.3300260.A are met, then the condominium conversion project will be entitled to an increase in units of twenty-five percent over the number of apartments, to be provided within the existing structure or structures proposed for conversion from apartments to condominiums (Government Code Section 65915.5(b)).

C. Presubmittal Preliminary Proposals for Density Bonus or Incentive for Condominium Conversion Projects. Prior to the submittal of a formal request for subdivision map approval or other application for necessary discretionary approvals, an applicant to convert apartments to a condominium project may submit to the director a preliminary proposal for density bonus or other incentives of equivalent financial value. The director shall, within ninety days of receipt of a written proposal, notify the applicant of the director's preliminary response and schedule a meeting with the applicant to discuss the proposal and the director's preliminary response (Government Code Section 65915.5(d)).

D. Application for Density Bonus or Incentives for Condominium Conversion Projects. An applicant must submit a completed application provided by the city for a density bonus or for other incentives of equivalent financial value. The application must be submitted concurrently with the application for the condominium conversion project. The application must include the following:

1. All information and documentation necessary to establish that the requirements of Section 17.39.320260 are met.

2. The proposal for a density bonus or the proposal for other incentives of equivalent financial value.
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3. Site plans demonstrating the location of the units to be converted, the affordable units, the market-rate units, and the density bonus units in the condominium conversion project.

4. Any other information and documentation requested by the city to determine if the requirements of Section 17.39.320260 are met.

E. Both the application for a density bonus or other incentives of equivalent financial value and the application for the condominium conversion must be complete before the application for a density bonus or other incentives of equivalent financial value will be considered.

F. Granting Density Bonus or Incentive for Condominium Conversion Projects.

1. Approval.
a. If the requirements of Section 17.39.320260 are met, the decision-making body for the condominium conversion project application is authorized to grant an application for a density bonus or other incentives of equivalent financial value, subject to Section 17.39.320260.
b. Reasonable conditions may be placed on the granting of a density bonus or other incentives of equivalent financial value that are found appropriate, including, but not limited to, entering into an affordable housing agreement pursuant to Section

17.39.310250, which ensures continued affordability of units to subsequent purchasers who are persons and families of moderate-income households or lowincome households (Government Code Section 65915.5(a)).

2. Ineligibility. An applicant shall be ineligible for a density bonus or other incentives of equivalent financial value if the apartments proposed for conversion constitute a qualified housing development for which a density bonus as defined in Section

17.39.0540 or other incentives were provided (Government Code Section 65915.5(f)).

3. Decision on Condominium Conversion Project. Nothing in this section shall be construed to require the city to approve a proposal to convert apartments to condominiums (Government Code Section 65915.5(e)).

17.39.325 Request for Density Bonus in Commercial Development.

A. Requirements for Density Bonus or Incentive for Condominium Conversion Projects.

1. An applicant to convert apartments to a condominium project agrees to provide at least:
a. Thirty-three percent of the total units of the proposed condominium project for moderate-income households, or
b. Fifteen percent of the total units of the proposed condominium project for lowincome households.

2. If applicant agrees to pay for the reasonably necessary administrative costs incurred by the city pursuant to this section, the city shall either:
a. Grant a density bonus, or
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b. Provide other incentives of equivalent financial value (Government Code Section 65915.5(a)).

B. Definition of Density Bonus for Condominium Conversion Projects. If the requirements of Section 17.39.320.A are met, then the condominium conversion project will be entitled to an increase in units of twenty-five percent over the number of apartments, to be provided within the existing structure or structures proposed for conversion from apartments to condominiums

17.39.330 Enforcement provisions.

A. Occupancy. Prior to occupancy of an affordable unit, the household's eligibility for occupancy of the affordable unit must be demonstrated to the city. This provision applies throughout the restricted time periods pursuant to Section 17.39.310250 and applies to any change in ownership or tenancy, including subletting, of the affordable unit.

B. Ongoing Compliance. Upon request, the affordable housing developer must show that the affordable units are continually in compliance with this chapter and the terms of the affordable housing agreement. Upon thirty-day notice, the city may perform an audit to determine compliance with this chapter and the terms of any agreement or restriction.

C. Enforcement. The city has the authority to enforce the provisions of this chapter, the terms of affordable housing agreements and equity sharing agreements, deed restrictions, covenants, resale restrictions, promissory notes, deed of trust, conditions of approval, permit conditions, and any other requirements placed on the affordable units or the approval of the qualified housing development. In addition to the enforcement powers granted in this chapter, the city may, at its discretion, take any other enforcement action permitted by law, including those authorized by city ordinances. Such enforcement actions may include, but are not limited to, a civil action for specific performance of the restrictions and agreement(s), damages for breach of contract, restitution, and injunctive relief. The remedies provided for herein shall be cumulative and not exclusive and shall not preclude the city from seeking any other remedy or relief to which it otherwise would be entitled under law or equity.

Section 3. CEQA. Pursuant to the California Environmental Quality Act (CEQA), the zoning text amendments to Chapter 17.39- Density Bonus of Title 17 of the Soledad Municipal Code, are consistent with the environmental analysis conducted for the City of Soledad 6th Cycle Housing Element, which was evaluated under an Addendum to the certified General Plan Environmental Impact Report (EIR). The amendments do not result in significant new environmental effects or a substantial increase in the severity of previously identified impacts.

Therefore, no additional environmental review is required under CEQA Guidelines Sections 15162 and 15164. These amendments do not propose or commit the City to construction, and any subsequent project proposing a residential project in these zones would undergo environmental review at the time of proposal.
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Section 4. Severability. The City Council hereby declares every section, paragraph, sentence, clause and phrase in this ordinance is severable. If any section, paragraph, sentence, clause or phrase of this ordinance is for any reason found to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining sections, paragraphs, sentence, clause or phrases.

Section 5. Effective Date. This ordinance shall take effect and be in force 30 days after its adoption, and a summary of this ordinance shall be published once with the names of the members of the council voting for and against the ordinance in a newspaper of general circulation in the City of Soledad.

This ordinance was introduced and read on the 17th day of December 2025 and was finally adopted on the 14th day of January 2026 by the following vote.

AYES, and in favor thereof, Councilmembers:

NOES, Councilmembers:

ABSTAIN, Councilmembers:

ABSENT, Councilmembers:
_____________________________
ANNA M VELAZQUEZ, Mayor
Attest:
______________________________________
MEGAN HUNTER, City Manager/Clerk
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Attachment No. 1
279
280
281
282
283
284
Dec 17, 2025
City of Soledad
248 Main St
Soledad, CA 93960
By email: [email protected]; [email protected]; [email protected]; [email protected]; [email protected]
CC: [email protected]; [email protected]; [email protected]; [email protected] Re: Proposed Amendments to the City’s ADU Regulations
Dear Soledad City Council,
The California Housing Defense Fund (“CalHDF”) submits this letter as a public comment regarding item VIII.2 for the Council meeting of December 17 2025, an update to the City’s zoning text. Specifically, CalHDF writes to comment on the City’s proposed regulations for the construction of accessory dwelling units (“ADUs”) and junior accessory dwelling units (“JADUs”).

There are specific portions of the City's ADU code that violate state law, and the City should correct these issues before passing the ordinance.

Background
The law gives local governments authority to enact zoning ordinances that implement a variety of development standards on ADUs. (Gov. Code, § 66314.) The standards in these local ordinances are limited by state law so as not to overly restrict ADU development. (See id.) Separately from local ADU ordinances, Government Code section 66323 establishes a narrower set of ADU types that local governments have a ministerial duty to approve. “Notwithstanding Sections 66314 to 66322 ... a local agency shall ministerially approve” these types of ADUs. (Id. at subd. (a).) This means that ADUs that satisfy the minimal requirements of section 66323 must be approved regardless of any contrary provisions of the local ADU ordinance. (Ibid.) Local governments may not impose their own standards on such ADUs. (Gov. Code, § 66323, subd. (b) [“A local agency shall not impose any objective development or 2201 Broadway, PH1, Oakland, CA 94612
www.calhdf.org
Attachment No. 2
285
design standard that is not authorized by this section upon any accessory dwelling unit that meets the requirements of any of paragraphs (1) to (4), inclusive, of subdivision (a).”].) In addition, ADUs that qualify for the protections of Government Code section 66323, like other ADUs, must be processed by local governments within 60 days of a complete permit application submittal. (Gov. Code, § 66317, subd. (a).) State law also prohibits creating regulations on ADU development not explicitly allowed by state law. Government Code Section 66315 states, “No additional standards, other than those provided in Section 66314, shall be used or imposed, including an owner-occupant requirement, except that a local agency may require that the property may be used for rentals of terms 30 days or longer.”
Impermissible Owner Occupancy Restriction on JADUs
City code section 17.38.260(C)(1) requires owner occupancy for properties that contain a JADU.

However, the City should also be aware that AB 1154 will be effective on January 1, 2026. In addition to other provisions, AB 1154 forbids the application of owner occupancy requirements to properties with a JADU when the JADU has its own bathroom.

Given how close we are to the effective date of AB 1154, the City should update its code accordingly.

Impermissible Application of Underlying Standards
City code section 17.38.260(D)(1)(e) applies all underlying zoning standards to all attached ADUs, with an exception if application of such standards would preclude construction of an 800 square foot ADU.

City code section 17.38.260(D)(2)(e) applies all underlying zoning standards to all detached ADUs, with an exception if application of such standards would preclude construction of an 800 square foot ADU.

However, as discussed supra, the City may not apply any underlying standards to ADUs developed pursuant to Government Code section 66323, subdivision (a). The savings clause regarding 800 square foot ADUs is insufficient because ADUs developed pursuant to section 66323, subdivision (a) are not subject to any underlying zoning standards, as Government Code section 66323, subdivision (b) forbids the application of any local standards.

Of particular note, City code section 17.38.260(D)(2)(e) applies underlying front setback requirements to all detached ADUs. However, Government Code section 66323, subdivision 2 of 4
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(a) does not permit any imposition of front setback requirements if the ADUs qualify for the protections of that section of law. This is because Government Code section 66323, subdivision (b) forbids application of any local standards not specifically listed in section 66323. New construction, detached ADUs developed pursuant to section 66323 are only required to adhere to four foot side and rear setbacks. This means that the City may not impose any front setbacks on such ADUs.

Additionally, the savings clause relating to 800 square foot ADUs is insufficient. First, even if an ADU is developable elsewhere on the parcel, Government Code section 66323, subdivision (b) forbids the City from imposing a front setback requirement in order to regulate the ADU’s location. Second, detached ADUs developed on parcels with multifamily buildings pursuant to Government Code section 66323, subdivision (a)(4) are not subject to any size limits. This is because Government Code section 66323 does not include any size limits on ADUs on multifamily parcels, and Government Code section 66323, subdivision (b) forbids the application of any development standards to section 66323 ADUs if such standards are not included in section 66323. This means that an exception for 800 square foot ADUs is inadequate for detached ADUs developed on parcels with multifamily buildings.

HCD has issued guidance under its authority in Government Code section 66327 (that guidance is located in the January 2025 HCD ADU Handbook, page 18) affirming the duty of local agencies to allow ADUs protected by Government Code section 66323 in the front setback under all circumstances: “66323 Units do not have to comply with lot coverage, front setbacks, and design standards.” This applies whether the property is a single family home or a multifamily building.

The City must amend its code to exempt section 66323 ADUs from all underlying zoning standards, including front setback requirements.

Impermissible Parking Requirements
City code section 17.38.260(D)(2)(d) imposes parking requirements on all ADUs, less certain specified exceptions.

However, as discussed supra, the City cannot impose local development standards on ADUs that conform to the requirements of Government Code section 66323, subdivision (a), as section 66323, subdivision (b) specifically exempts such ADUs from all local requirements.

This means that the City cannot impose parking requirements on section 66323 ADUs.

From page 20 of the January 2025 HCD ADU Handbook (emphasis added):

A local agency may not impose development or design standards, including both local standards and standards found in State ADU Law, on 66323 Units that are not 3 of 4
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specifically listed in Government Code section 66323. (Gov. Code, § 66323, subds. (a), (b).) This includes, but is not limited to, parking, height, setbacks, or other zoning provisions (e.g., lot size, open space, floor area ratio, etc.).

The City must amend its ADU ordinance to exempt section 66323 ADUs from parking requirements, as is required by state law.
⧫ ⧫ ⧫
It is laudable that the City is updating its ADU regulations as state law changes. However, the City should make sure that its zoning regulations comply with state law.

CalHDF is a 501(c)(3) non-profit corporation whose mission includes advocating for increased access to housing for Californians at all income levels, including low-income households. You may learn more about CalHDF at www.calhdf.org.

Sincerely,
Dylan Casey
CalHDF Executive Director
James M. Lloyd
CalHDF Director of Planning and Investigations
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HOUSING

IMPLEMENTATION
ZONING

AMENDMENTS
City of Soledad
December 17, 2025
289
Implement the 2023-2031 6th
Cycle Housing Element
Align zoning with State Housing
Laws
Support REAP 2.0 Goals –Obtained
$79,985 for Implementation
Facilitate infill & affordable housing

OVERVIEW
1 2
3 4
2 290
Ordinances were first introduced on December 17, 2025
Ordinance Nos. 776 & 777
• Emergency Shelters: Parking clarified to serve on-site staff; not more restrictive than similar uses
• ADUs – Parking:
– No parking for JADUs or attached ADUs
– Detached ADUs require parking if > ½ mile from
transit
• ADUs – Fire Sprinklers:
– No sprinklers required if primary dwelling is not
sprinklered
• Council Direction: Explore parking incentives and review ADU approvals at a later time

CITY COUNCIL

DISCUSSION
3 291
ORD. NO. 776 – ALLOWABLE USES &

GENERAL ZONING AMENDMENTS
Housing Element
Programs
4 Allowable Uses Density Changes
1 2 3
Residential Care Facilities are
Permitted in all zoning districts
that allow housing
Emergency Shelters sections
standards updated to comply
with SB 2 for a faster and
clearer process
Condominiums are permitted
in R-1, R-1.5, R-2 and R-3
zones, where before they
needed a CUP
Density in the R-2 zone was
set with a minimum density of
9 du/ac & not to exceed 22
du/ac (before was 12 du/ac)
R-1 standards for lot sizes
were changed from 6,000 sq
ft to 5,000 sq ft
Various Code updates and
allowable uses
Reasonable Accommodation:
removes findings, alternative
measures and development
standards to help streamline
approval
292
ORD. NO. 777 – ACCESSORY DWELLING
UNITS (ADUs)
Locations Permitted
5 1
 Owner Occupancy required for JADU’s
(<500 sq ft), but no longer for any type
of ADU’s
 One JADU and ADU allowed per lot
Unit Type Allowed on Same Lot Notes
JADU + Detached ADU ✅ Allowed Owner-occupancy required for JADU & ≤ 500 sq ft.

Attached Garage JADU + Detached ADU ✅ Allowed Must be ≤ 500 sq. ft. for JADU & Owner-occupancy required
Primary Dwellling + ADU
Secondary Dwelling + ADU
✅ Allowed only through
SB 9 lot split A large lot split into two lotsOwner Occupancy required 293
ORD. NO. 777 – ACCESSORY DWELLING
UNITS (ADUs)
Development Standards
6 2
 Defined - Floor area, setbacks for
existing accessory structures
(grandfathered in)
 Added Maximum height to be 2 stories
or by the base of the zoning district or
primary home, whichever is lower
 No more parking requirements for
Attached ADU’s
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ORD. NO. 778 – DENSITY BONUS
Housing Element
Programs
7 Definitions & Process Improves Transparency &
Consistency
1 2 3
Clarifies key terms such as-
“Affordable units,” “Very lowincome households,”& “Senior housing”
Establishes a clear process for
requesting density bonuses,
concessions, and incentives
Defines eligibility criteria for
mixed-use developments &
land donation projects
Includes reference tables that
summarize: allowed density
bonuses & applicable
incentives and concessions
Ensures consistent and
transparent implementation of
State law
Program 2.2.4 of the Housing
Element directs the City to
adopt and maintain Density
Bonus provisions consistent
with State Density Bonus Law
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L-10 accommodate needed housing while
maintaining an appropriate balance between
residential and employment-generating uses
L-12 by maintaining an adequate supply of
appropriately designated land to meet projected
household growth, providing opportunities for
moderate- and below-moderate-income housing
H-2 by ensuring sufficient vacant and underutilized
land is zoned to meet the City’s RHNA-identified
housing needs, consistent with regional growth
expectations established by AMBAG.

Directly support and implement the City’s recently
adopted 2023–2031 Housing Element

GENERAL PLAN
& HOUSING

ELEMENT

COMPLIANCE
1 2
3 4
8 296
Approve Ord No. 776, 777, 778:
 As presented
 With adjustments to the proposed language or
clarifications
CEQA: Ordinance No. 776, 777 and 778, are consistent
with the environmental analysis conducted for the City of Soledad 6th Cycle Housing Element, which was evaluated
under an Addendum to the certified General Plan
Environmental Impact Report (EIR).

Upon Approval:
 Forward recommendation to the City Council
 Submit to State

CITY COUNCIL
ACTION
9 297

HOUSING

IMPLEMENTATION
ZONING

AMENDMENTS
THANK YOU!
10 298
SUBJECT: Waiver of Reading, Adoption and Read by Title Only of Ordinance No. 774, Ordinance of the City Council of the City of Soledad Amending the Downtown Specific Plan Section 2.0- Zones of Chapter 5.0- Development Code and Chapter 10.0- Definitions, to Establish Separate Veterinary Services and Animal Boarding Uses and to Conditionally Allow SmallScale Veterinary Services in the Downtown Core District TO: Honorable Mayor Anna Velazquez and City Council
FROM: Beatriz Trujillo, Community and Economic Development Director and Ariana Mora, Senior Planner
MEETING DATE: February 4, 2026

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 1.

Recommendation
It is recommended that the City Council of the City of Soledad consider waiver of reading, adoption and reading by title only of Ordinance No. 774, an Ordinance of City Council of the City of Soledad Amending the Downtown Specific Plan Section 2.0- Zones of Chapter 5.0- Development Code and Chapter 10.0- Definitions, to Establish Separate Veterinary Services and Animal Boarding Uses and to Conditionally Allow Small Scale Veterinary Services in the Downtown Core District.

Executive Summary
The City of Soledad is advancing targeted amendments to the Downtown Soledad Specific Plan to clarify land use regulations and support a more vibrant and economically resilient downtown. These updates respond directly to City Council direction to reevaluate how veterinary services are regulated in Soledad and to ensure the Specific Plan supports appropriate small-scale service uses. The proposed revisions modify Section 2.0 – Zones of Chapter 5.0 – Development Code and Chapter 10.0 – Definitions to establish distinct land use categories for Veterinary Services and Animal Boarding and allow Small-Scale Veterinary Services as a minor use within the Downtown Core District.

Background
The Downtown Soledad Specific Plan (DSP) establishes five zoning districts, each with development standards and land use regulations tailored to support the intended character and function of the downtown area. Land uses within these districts are categorized as Permitted (P), Minor Use Permit (MUP), Conditional Use Permit (CUP), or Prohibited (–). Permitted uses are generally reviewed administratively, while MUPs and CUPs require ministerial or discretionary review and public 299
noticing. This framework allows the City to manage growth, ensure land use compatibility, and maintain a balanced mix of commercial, residential, and light industrial uses within Downtown Soledad.

In response to City Council interest in expanding access to animal services, staff evaluated how veterinary uses are currently regulated under the DSP. Because the potential changes represented a substantive policy shift, staff presented the concept to the City Council on October 15, 2025. Following discussion, the City Council directed staff to prepare amendments that would clarify land use classifications for veterinary-related services and expand opportunities for small-scale, appointmentbased veterinary care in the downtown area.

Consistent with this direction, staff prepared Ordinance No. 774, proposing amendments to the DSP to establish separate land use categories for veterinary services and animal boarding and to allow smallscale veterinary services in the Downtown Core District, subject to appropriate limitations. As the amendments involve updates to both the Downtown Specific Plan and the Soledad Municipal Code, review by the Planning Commission was required prior to City Council consideration. On November 20, 2025, the Planning Commission reviewed the proposed ordinance and recommended adoption.

The ordinance was introduced and received its first reading by title only on December 17, 2025, at which time the City Council reviewed the proposal and provided direction to incorporate additional clarifying language. Because of these requested changes, the ordinance was re-introduced on January 14, 2026 with the edits. Ordinance No. 774 is now being presented to the City Council for review and consideration of adoption.

These amendments are intended to resolve ambiguities in the DSP, promote consistent application of land use standards, and provide clear pathways for small, service-oriented veterinary businesses to operate in Downtown Soledad.

Review & Analysis
The DSP establishes five zoning districts, as seen in Map 1 attached to this report, each with land use regulations tailored to support its intended character and geographic context. This structure provides development flexibility while preserving the City’s long-term vision for a vibrant and balanced Downtown Soledad. As community needs evolve, periodic updates to the DSP are necessary to ensure it continues to support essential services and contributes to residents’ quality of life.

One identified gap in allowed uses relates to veterinary services. Although veterinary clinics are conditionally permitted in several DSP districts, they remain explicitly prohibited in the Downtown Core (DC) District. This restriction has become increasingly challenging for the community, particularly following the closure of Soledad’s only veterinary clinic. With a growing population and increased pet ownership, residents now have limited access to basic veterinary care and must frequently travel outside the city for vaccinations, wellness checks, and spay/neuter services. Expanding access to limited-service veterinary care within the DC District would help address this need while maintaining compatibility with surrounding uses. Small-scale, appointment-based outpatient clinics, without overnight boarding or outdoor kennels, are low-intensity operations that align with the DSP’s land use goals and support public health and animal welfare throughout South Monterey County.

Existing Veterinary Use Allowances in the DSP
Downtown Core District – Prohibited
300
Downtown Edge -Conditionally Allowed (MUP)
Monterey Street District – Conditionally allowed (CUP)
Railroad Corridor District – Conditionally allowed (MUP) Gateway District – Conditionally allowed (MUP)
Proposed Amendments to the Downtown Specific Plan (Ordinance No. 774) To enable small-scale veterinary services in the DC District while maintaining clear distinctions between compatible and higher impact uses, staff recommends the following text amendments:

Amend Chapter 5.0 – Development Code, Section 2.0 – Zones, to: Establish separate use categories for Veterinary Services and Animal Boarding/Daycare.

Allow Veterinary Services as a Minor Use Permit (MUP) use within the Downtown Core District, all other districts will reflect the proposed use category changes but keep the existing permit requirements.

Maintain Animal Boarding/Daycare as a prohibited use in the Downtown Core District Amend Chapter 10.0 – Definitions, to:

Update the definition of “Veterinary Services” to clarify that permitted activities include spay/neuter procedures, vaccinations, and wellness care conducted on an outpatient, appointment-only basis. Clarify that overnight animal boarding is not included within the definition of Veterinary Services. Establish a distinct definition for “Animal Boarding/Daycare” as a separate use involving overnight stays or extended care and prohibit this use in the DC District.

General Plan and Downtown Specific Plan Compliance
The proposed amendment to the Downtown Specific Plan is consistent with the 2005 General Plan by supporting a balanced mix of land uses in Soledad. Allowing small-scale veterinary services in the Downtown Core while distinguishing them from higher-intensity animal boarding uses helps maintain a balance between employment-generating commercial activities and community-serving uses, aligning with Policy L10. By expanding opportunities for essential neighborhood-serving services within an existing commercial district, the amendments also support Policy L22, which calls for ensuring adequate commercial land to meet the present and future needs of residents. Additionally, enabling limited-service veterinary clinics responds to an identified service gap in Soledad and supports Policy E3 by encouraging the attraction and retention of commercial tenants in under supplied sectors. Together, these updates strengthen the economic vitality of Downtown, promote a complete and more functional commercial environment, and reinforce Soledad’s broader land use and economic development goals.

Planning Commission Discussion
The Planning Commission conducted its initial review of the proposed ordinance amending the Downtown Specific Plan to accommodate veterinary services within the Downtown Core District on November 20, 2025. The Commission’s discussion focused primarily on the types of animals that would be permitted in this district. After clarifying several applicable zoning standards, the Planning Commission recommended modifying the proposed definition of “veterinary services” to clearly limit treatment to household animals and to specify that services be restricted to wellness exams, vaccinations, preventative care, and routine surgical procedures such as spay and neuter services. Staff is forwarding this recommended modification to the City Council for consideration as part of the proposed ordinance.
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City Council Discussion
Ordinance No. 774 was first introduced to the City Council on December 17, 2025, at which time the Council approved its introduction and directed it to proceed to a public hearing. During the discussion, the Council requested clarification regarding the proposed amendments to the definitions of Animal Boarding and Day Care and household pets for small veterinary services. Because of these changes, Ordinance No. 774 was reintroduced on January 14, 2026.

Regarding the definition of household pets in the Veterinary Services, Limited Treatment category, the Planning Commission provided a recommendation to limit services to only household pets. However, during the introduction of the ordinance, the Council directed staff to refine the definition further. It is important to note that the Soledad Municipal Code Chapter 17.38- Special Standards, already defines small-animal veterinary hospitals or clinics. This code limits treatment to small animals, such as dogs, cats, and other similar household pets, while explicitly prohibiting medical treatment for livestock or animals of the cattle family, including cows and bulls, which are typically raised for meat, milk, or labor. To maintain consistency with existing code language, staff recommends updating the definition as noted in red:

Veterinary Services, Limited Treatment (land use type):

A small-scale medical establishment for typical household pets, including dogs, cats, rabbits, birds, and other domesticated animals commonly kept as pets, with staff and facilities that provide outpatient animal care, including wellness exams, vaccinations, preventative treatments, and routine surgical procedures such as spay and neuter services. This use does not include livestock, farm animals, or bovine animals (e.g., cows, bulls, bison, or other animals raised primarily for meat, milk, labor, or other agricultural purposes). No overnight boarding, outdoor kennels, surgical suites, or animal hospitalization facilities are permitted.

For the Animal Boarding and Day Care definition, the Council requested clarification on how “shortterm” and “long-term” stays are distinguished. Typically, animal day care is a short-term use, with animals dropped off and picked up within the same day and not requiring extended on-site housing. In contrast, animal boarding generally involves longer-term stays, where animals remain on-site for consecutive days. The Downtown Specific Plan does not currently define boarding duration, which may create ambiguity in land use applications. To provide clarity, staff recommends refining the definition to specify that short-term stays include animal day care and boarding services lasting from a single day up to one week, commonly associated with temporary care needs such as travel, weekend absences, or emergencies. Long-term boarding refers to stays extending beyond one week, which more closely resemble extended housing of animals. To provide clarity, staff recommends updating the definition as noted in red:

Animal Boarding and Day Care (land use type):

A facility where animals are housed or cared for short- or long-term stays. Facilities may include kennels, designated outdoor areas, grooming services, and training activities. Short-term stays include animal day care and boarding services lasting from a single day up to one week, typically associated with temporary care needs such as travel, weekend absences, or emergencies. Long-term boarding refers to stays extending beyond one week, where animals are housed on-site for consecutive days.

The proposed time frames reflect common industry practices, establish a clear distinction between day care and boarding operations, and provide an objective standard to support consistent land use determinations while minimizing potential land use conflicts. 302
Conclusion
The proposed amendments to the Downtown Soledad Specific Plan implement City Council direction to provide greater flexibility for essential veterinary and wellness services and address community needs for spay/neuter and outpatient care while maintaining consistency with the DSP’s long-term vision for a vibrant and balanced Downtown. The review of the amendments remains a vital step in this process, providing thoughtful evaluation and recommendations on the proposed ordinance language.

The Council's action is to review and consider the Ordinance No. 774 for adoption.

Financial Considerations
At this time, all costs associated with processing this item are either administrative in nature or will be paid through application fees. No additional expenditures are anticipated.

Strategic Plan Alignment
The approval of Ordinance No. 774 aligns with the City Council’s 2025 Strategic Plan by supporting continued progress toward key goals and priorities. This proposed ordinance advances the Economy pillar by updating and implementing the Downtown Specific Plan to better reflect current community growth and needs, guiding future development, investment, and economic vitality through improvements to land use, design, and pedestrian access (Objective 1.3.4). In addition, Ordinance No. 774 supports the Safety pillar by improving local access to spay, neuter, and foster programs, helping expand affordable veterinary and sterilization services for the community (Objective 6.3.1).

Alternatives
Adopt and read by title only, Ordinance No. 774 as presented; or Adopt and read by title only, Ordinance No. 774 with specific, directed modifications, such as adjustments to the proposed language, clarifications, or corrections; or Deny the proposed Ordinance No. 774 and provide direction to staff. This action is not recommended as the proposed ordinance is a policy change directed by the City Council from the October 15, 2025 City Council meeting.

Planning/CEQA
The proposed amendments to the Downtown Soledad Specific Plan, including revisions to Section 2.0 – Zones of Chapter 5.0 – Development Code and Chapter 10.0 – Definitions to establish separate veterinary services and animal boarding uses and to conditionally allow small scale veterinary services in the downtown core district, qualify for a categorical exemption under CEQA Guidelines §15303 (New Construction or Conversion of Small Structures) and §15061(b)(3) (No Significant Effect on the Environment). The amendments are limited to text changes that regulate allowable land uses and definitions within existing zones, do not authorize physical construction, and will not result in any significant environmental impacts. Any future development under these provisions will be subject to separate review under CEQA.

Public Notice Requirements
The public hearing was published in the Salinas Californian on December 24, 2025.

Attachment(s):
303
Ordinance No. 774
Attachment 1 - Planning Commission Resolution No. 2025-11 Map 1- Downtown Specific Plan Boundary
Presentation 1- Ord No. 774
304
ORDINANCE NO. 774

AN ORDINANCE OF CITY COUNCIL OF THE CITY OF SOLEDAD AMENDING THE DOWNTOWN SPECIFIC PLAN SECTION 2.0- ZONES OF CHAPTER 5.0- DEVELOPMENT CODE AND CHAPTER 10.0- DEFINITIONS, TO ESTABLISH

SEPARATE VETERINARY SERVICES AND ANIMAL BOARDING USES AND TO

CONDITIONALLY ALLOW SMALL-SCALE VETERINARY SERVICES IN THE

DOWNTOWN CORE DISTRICT
WHEREAS, the Downtown Soledad Specific Plan (“DSP”) was adopted by the City in 2012 to guide land use, development standards, and design within the Downtown area; and WHEREAS, the DSP establishes five zoning districts and provides flexibility to accommodate a variety of compatible land uses while preserving the long-term vision for a vibrant, balanced, and economically healthy Downtown; and
WHEREAS, the type and extent of permitted uses in each zone are guided by their intended purpose and geographic context of the district, ensuring orderly development while maintaining the character and quality of life in Downtown Soledad; and WHEREAS, it is necessary to periodically review and update the DSP to ensure it continues to support essential services, meets emerging community needs, and enhances the overall vitality and livability of the Downtown area; and WHEREAS, veterinary services are currently prohibited in the Downtown Core (DC) District, while similar services are conditionally permitted in other DSP zones; and WHEREAS, population growth and increased pet ownership have created a need for access to veterinary and wellness services within the Downtown area, while maintaining compatibility with surrounding uses; and
WHEREAS, the proposed amendments to the Downtown Soledad Specific Plan, including revisions to Section 2.0 – Zones of Chapter 5.0 – Development Code and Chapter 10.0 – Definitions, are intended to establish separate veterinary services and animal boarding uses and to conditionally allow small-scale veterinary services in the Downtown Core District; and WHEREAS, allowing small-scale, outpatient veterinary services, including wellness checks and spay/neuter procedures, with limitations on higher-impact operations such as overnight boarding, will help address local service gaps, promote public health and safety, and maintain the character and goals of the Downtown Core District; and
WHEREAS, the proposed amendments will provide a framework to conditionally allow these uses through discretionary review, ensuring that new uses are compatible with existing Downtown land uses and continue to support the City’s vision for a vibrant and balanced Downtown; and
305
WHEREAS, the proposed amendments to the Downtown Soledad Specific Plan are consistent with 2005 the City of Soledad General Plan, including Policy L10, which directs the City to maintain a reasonable balance between employment-generating uses and communityserving land uses; Policy L22, which calls for ensuring adequate commercial land to meet the present and future needs of residents and to sustain economic vitality; and Policy E3, which encourages efforts to attract and retain commercial and office tenants in sectors that are currently undersupplied and for which local demand exists; and
WHEREAS, allowing small-scale veterinary services within the Downtown Core supports these policies by expanding access to essential neighborhood-serving commercial services, addressing an identified community need, enhancing opportunities for economic activity, and strengthening the overall vitality and functionality of the Downtown commercial district; and WHEREAS, the proposed amendments to the Downtown Soledad Specific Plan qualify for a categorical exemption under CEQA Guidelines §15303 and the common-sense exemption under §15061(b)(3), as they consist solely of text changes regulating allowable land uses and definitions, do not authorize any physical construction, and will not result in a significant environmental impact and any future development under these provisions will be subject to separate CEQA review.

NOW THEREFORE, BE IT HEREBY ORDAINED by the Soledad City Council as follows:

Section 1. All of the recitals set forth above are true and correct to the best of its knowledge, and by this reference are incorporated herein.

Section 2. Table 5.2A.1 Allowed Land Uses and Required Parking: Downtown Core of Section

2.30.10- Downtown Core of Chapter 5.0- Development Code in the Downtown Specific Plan is hereby amended as follows:

Category Use Permit Parking
Animal Boarding and
Day Care
- -
Services Veterinary Clinic /
Animal Boarding &
Day Care
- -
Veterinary Services
(Limited Treatment)
MUP 1/400
306
Section 3. Table 5.2B.1 Allowed Land Uses and Required Parking: Downtown Edge of Section

2.30.20- Downtown Edge of Chapter 5.0- Development Code in the Downtown Specific Plan is hereby amended as follows:

Category Use Permit Parking
Animal Boarding and
Day Care
MUP 1/400
Services Veterinary Clinic /
Animal Boarding &
Day Care
MUP 1/400
Veterinary Services
(Limited Treatment)
MUP 1/400
Section 4. Table 5.2C.1 Allowed Land Uses and Required Parking: Monterey Street of Section

2.30.30- Monterey Street of Chapter 5.0- Development Code in the Downtown Specific Plan is hereby amended as follows:

Category Use Permit Parking
Animal Boarding and
Day Care
CUP 1/400
Services Veterinary Clinic /
Animal Boarding &
Day Care
CUP 1/400
Veterinary Services
(Limited Treatment)
CUP 1/400
Section 5. Table 5.2D.1 Allowed Land Uses and Required Parking: Railroad Corridor of Section

2.30.40- Railroad Corridor of Chapter 5.0- Development Code in the Downtown Specific Plan is hereby amended as follows:

Category Use Permit Parking
Animal Boarding and
Day Care
P 1/400
Services Veterinary Clinic /
Animal Boarding &
Day Care
P 1/400
Veterinary Services
(Limited Treatment)
P 1/400
307
Section 6. Table 5.2E.1 Allowed Land Uses and Required Parking: Gateway of Section 2.30.50- Gateway of Chapter 5.0- Development Code in the Downtown Specific Plan is hereby amended as follows:

Category Use Permit Parking
Animal Boarding and
Day Care
P 1/400
Services Veterinary Clinic /
Animal Boarding &
Day Care
P 1/400
Veterinary Services
(Limited Treatment)
P 1/400
Section 7. Chapter 10.0- Definitions in the Downtown Specific Plan is hereby amended as follows:

Animal Boarding and Day Care (land use type): A facility where animals are housed or cared for short- or long-term stays. Facilities may include kennels, designated outdoor areas, grooming services, and training activities. Short-term stays include animal day care and boarding services lasting from a single day up to one week, typically associated with temporary care needs such as travel, weekend absences, or emergencies. Long-term boarding refers to stays extending beyond one week, where animals are housed on-site for consecutive days.

Veterinary Clinic / Animal Boarding and Day Care (land use type): A medical establishment for animals with on-site staff and facilities that serves animal patients with a variety of medical services ranging from diagnoses to surgery and includes boarding overnight observation or boarding incidental to medical care.

Veterinary Services, Limited Treatment (land use type): A small-scale medical establishment for typical household pets, including dogs, cats, rabbits, birds, and other domesticated animals commonly kept as pets, with staff and facilities that provide outpatient animal care, including wellness exams, vaccinations, preventative treatments, and routine surgical procedures such as spay and neuter services. This use does not include livestock, farm animals, or bovine animals (e.g., cows, bulls, bison, or other animals raised primarily for meat, milk, labor, or other agricultural purposes). No overnight boarding, outdoor kennels, surgical suites, or animal hospitalization facilities are permitted.

Section 8. CEQA. The proposed amendments to the Downtown Soledad Specific Plan, including revisions to Section 2.0 – Zones of Chapter 5.0 – Development Code and Chapter 10.0 – Definitions to establish separate veterinary services and animal boarding uses and to conditionally allow small scale veterinary services in the downtown core district, qualify for a categorical exemption under CEQA Guidelines §15303 (New Construction or Conversion of Small Structures) and §15061(b)(3) (No Significant Effect on the Environment). The amendments are limited to text changes that regulate allowable land uses and definitions within existing zones, do not authorize physical construction, and will not result in any significant environmental impacts.

Any future development under these provisions will be subject to separate review under CEQA. 308
Section 9. Severability. The City Council hereby declares every section, paragraph, sentence, clause and phrase in this ordinance is severable. If any section, paragraph, sentence, clause or phrase of this ordinance is for any reason found to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining sections, paragraphs, sentence, clause or phrases.

Section 10. Effective Date. This ordinance shall take effect and be in force 30 days after its adoption, and a summary of this ordinance shall be published once with the names of the members of the council voting for and against the ordinance in a newspaper of general circulation in the City of Soledad.

This ordinance was introduced and read on the 17th day of December 2025 and was finally adopted on the 4
th day of February, 2026 by the following vote.

AYES, and in favor thereof, Councilmembers:

NOES, Councilmembers:

ABSTAIN, Councilmembers:

ABSENT, Councilmembers:
_____________________________
ANNA M VELAZQUEZ, Mayor
Attest:
______________________________________
MEGAN HUNTER, City Manager/Clerk
309
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312

DOWNTOWN SPECIFIC
PLAN

VETERINARY SERVICES

AND ANIMAL BOARDING
USES
City of Soledad
December 17, 2025
1 313
Policy change direction by City
Council on October 15, 2025
Clearer land use distinctions for
veterinary-related services and
expand opportunities for smallscale, appointment-based veterinary care in the Downtown Soledad
Identified gap in allowed uses
relates to veterinary services

OVERVIEW
1 2
3 2
314
Staff is reccomending Approval of
Ord. No 774:
• As presented
• With adjustments to the
proposed language or
clarifications
The proposed ordinance is a policy
change directed by the City Council

CITY COUNCIL
ACTION
3 315
ORD. NO. 774 – Vet Services in DSP
Identified Service Gap
4 Current Challenges Purpose and Community
Benefits
1 2 3
Gateway District – Allowed
with MUP
Railroad Corridor District –
Allowed with MUP
Monterey Street District –
Allowed with CUP
Downtown Core District –
Prohibited
Improve access to basic pet
healthcare
Reduce the need for residents
to travel outside the city
Support public health and
animal welfare
As community needs change,
ensure the DSP continues to
support essential services.

Veterinary clinics are
prohibited in the Downtown
Core (DC).

The only veterinary clinic in
Soledad closed
316
L-10 accommodate needed housing while
maintaining an appropriate balance between
residential and employment-generating uses
L22 ensures adequate commercial land to meet the
present and future needs of residents.

E3 encourages the attraction and retention of
commercial tenants in undersupplied sectors.

City Council Direction

GENERAL PLAN

COMPLIANCE
1 2
3 4
5 317
The Downtown Soledad Specific Plan (DSP) establishes five zoning districts, each with development standards tailored to support the desired downtown character.

OVERVIEW OF THE DOWNTOWN SPECIFIC
6 PLAN
FRONT ST.

MONTEREY ST.

MARKET ST.
318

OVERVIEW OF THE DOWNTOWN SPECIFIC
7 PLAN
 Land Uses within each district are classified as:
 P – Permitted
 MUP – Minor Use Permit
 CUP – Conditional Use Permit
 - Prohibited
 Permitted uses are generally processed administratively; MUPs and CUPs require additional review and public noticing.
319
8 ORD. NO. 774- VET SERVICES IN DSP
 Implements Council direction by updating land use regulations within the DSP
 Creates
 Separate categories for Veterinary Clinics and Veterinary Services, and Animal Boarding/Daycare where the DSP proposed it as all one use Category Use Downtown
Core
Downtown
Edge
Monterey Street Railroad Corridor Gateway
Services
Animal Boarding
and Day Care
- MUP CUP P P
Veterinary Clinic
/ Animal
Boarding & Day
Care
- MUP CUP P P
Veterinary
Services
(Limited
Treatment)

MUP MUP CUP P P
320
9 ORD. NO. 774- VET SERVICES IN DSP
Original Definition:

New Definitions:
 Amend Chapter 10.0 – Definitions of the DSP
Animal Boarding and Day Care
(land use type): A facility where
animals are housed or cared for
short- or long-term stays.

Facilities may include kennels,
designated outdoor areas,
grooming services, and training
activities.

Veterinary Services, Limited Treatment (land use type): A small-scale medical establishment for animals with staff and facilities that provides outpatient animal care,
including wellness exams, vaccinations, preventative
treatments and routine surgical procedures such as
spay and neuter services. No overnight boarding,
outdoor kennels, surgical suites, or animal
hospitalization facilities are permitted.
321
Reccomended to Approve Ord. No. 774 :

With modification of the Veterinary Services
definition to say:

Veterinary Services, Limited Treatment (land use type): A small-scale medical establishment for household animals, with staff and facilities that provides outpatient animal care, including wellness exams, vaccinations, preventative
treatments and routine surgical procedures such as spay and neuter services. No overnight boarding, outdoor kennels, surgical suites, or animal hospitalization facilities are permitted.

PLANNING

COMMISSION

RECCOMENDATION
10 322
Modify of the Veterinary Services definition:

Veterinary Services, Limited Treatment (land use type): A small-scale medical establishment for typical household pets including dogs, cats, rabbits, birds, and other
domesticated animals commonly kept as pets, with staff
and facilities that provides outpatient animal care,
including wellness exams, vaccinations, preventative
treatments and routine surgical procedures such as
spay and neuter services. This use does not include
livestock, farm animals, or bovine animals (e.g., cows, bulls, bison, or other animals raised primarily for meat, milk, labor, or other agricultural purposes). No overnight boarding, outdoor kennels, surgical suites, or animal
hospitalization facilities are permitted.

STAFF

RECCOMENDATION
COUNCIL DIRECTION 11
323
Modify the Animal Boarding and Day Care
definition:

Animal Boarding and Day Care (land use type): A facility where animals are housed or cared for short- or long-term stays.

Facilities may include kennels, designated outdoor areas, grooming services, and training activities. Short-term stays include animal day care and boarding services lasting from a single day up to one week, typically associated with temporary care needs such as travel, weekend absences, or
emergencies. Long-term boarding refers to stays extending beyond one week, where animals are housed on-site for
consecutive days.

STAFF

RECCOMENDATION
COUNCIL DIRECTION 12
324
Consider Approval of Ord. No. 774:
 As presented
 With adjustments to the proposed language
or clarifications
CEQA: he proposed zoning text amendments through
Ordinance No. 774 qualifies for a categorical
exemption under CEQA Guidelines §15303 and the
common-sense exemption under §15061(b)(3), as they
consist solely of text changes regulating allowable land uses and definitions
Upon Approval:
 Formal adoption for January 14, 2025

CITY COUNCIL
ACTION
13 325

DOWNTOWN SPECIFIC
PLAN

VETERINARY SERVICES

AND ANIMAL BOARDING
USES
Thank You!
14 326
SUBJECT: Resolution No. 6325, A Resolution of the City Council of the City of Soledad Selecting Eden Housing, Inc. as the Developer and Authorizing the City Manager to Execute an Exclusive Negotiation Agreement (ENA) for the Development of 540 Gabilan as a 100 PercentAffordable Housing Project
TO: Honorable Mayor Velazquez and City Council
FROM: Beatriz Trujillo, Community and Economic Development Director MEETING DATE: February 4, 2026

CITY OF SOLEDAD

STAFF REPORT
THROUGH: Megan Hunter, City Manager
AGENDA ITEM NO. 1.

Recommendation
It is recommended that the the City Council of the City of Soledad consider and approve Resolution No. 6325,

1. Selecting Eden Housing, Inc as the Developer for the 540 Gabilan Request for Qualifications for the design and development of a proposed 100% affordable multifamily rental housing project; and

2. Approving the Exclusive Negotiation Agreement (ENA) in substantial form and content and authorizing the City Manager and City Attorney to finalize the agreement; and

3. Authorizing the City Manager to execute the final ENA on behalf of the City.

Executive Summary
The City of Soledad is advancing the development of City-owned property at 540 Gabilan Drive for a 100 percent affordable multifamily rental housing project. Following a competitive Request for Qualifications (RFQ) process, Eden Housing, Inc. (Eden Housing) was identified as the preferred developer based on its demonstrated experience, strong financial capacity, and a proposal that exceeds the City’s minimum request by delivering 143 affordable housing units integrated with the future Toledo Basin Park. Staff recommends City Council approval of a resolution selecting, approving, and authorizing an Exclusive Negotiation Agreement (ENA) with Eden Housing.

The ENA establishes a structured, time-limited framework for the City and the selected developer to negotiate exclusively and in good faith toward a potential future development agreement, while allowing additional due diligence, project refinement, and pursuit of competitive funding opportunities. The ENA does not transfer ownership of the property, commit City funds, or approve a specific development project. Approval of this item will position the City to advance a significant affordable housing opportunity while preserving full City discretion and regulatory authority. 327
Background
In 2024, the City purchased the property located at 540 Gabilan Drive, which has been identified as a strategic site for affordable housing development. In support of the City Council’s policy direction to leverage publicly owned land to facilitate housing production, staff released a Request for Qualifications (RFQ) seeking qualified development teams with experience in affordable, publicprivate partnerships and complex funding structures.

The RFQ was released on September 12, 2025 with a closing date of October 29, 2025. During the RFQ open period, on October 8, 2025, a required site visit was scheduled, and candidates had an opportunity to address questions about the project and the evaluation process. Proposals were evaluated based on criteria emphasizing conceptual development approach, relevant affordable housing experience, financial capacity, partnership experience, and overall quality and completeness of the submittal.

Review & Analysis
The RFQ process was structured to ensure transparency, competitiveness, and alignment with City priorities. Two proposals were received and evaluated using a 100-point scoring system that placed the greatest weight on financial capacity and experience in affordable housing development. Based on this evaluation, staff recommends selecting Eden Housing. Eden Housing submitted a highly competitive proposal featuring a well-designed project that integrates with the future Toledo Basin Park, a diversified financing approach leveraging state and federal funding sources and tax credits, and a demonstrated capacity to deliver successful public-private partnerships. Notably, the proposal exceeds the City’s minimum requirement of 100 units by providing a total of 143 affordable housing units.

To formalize the selection and establish a framework for continued collaboration, staff recommends that the City enter into an Exclusive Negotiation Agreement (ENA) with Eden Housing. The ENA provides a structured, good-faith process for the City and the selected developer to negotiate exclusively toward a potential future development agreement. It allows both parties to further evaluate project feasibility, refine the development program, and pursue competitive funding opportunities before returning to the City Council for any required discretionary approvals.

The proposed ENA (Exhibit A) includes an initial one-year term, with the option for a one-year administrative extension at the discretion of the City Manager. During this period, the City agrees not to negotiate with other parties for development of the site, and the developer agrees to diligently advance feasibility analysis, conceptual design, funding strategies, and entitlement preparation.

The ENA does not transfer property ownership, guarantee project approval, or obligate the City to dispose of the site. It preserves the City’s full regulatory authority and requires the developer to be solely responsible for all costs related to studies, applications, and due diligence.

Financial Considerations
The City purchased this property for $1.728 using Housing Successor and American Rescue Plan Act funds for an affordable housing project. It is anticipated that the City would commit to the sale or lease of the property to Eden for a nominal fee to support this project.

Approval of the ENA will not result in a financial impact on the City’s General Fund and is the first step before disposition of the property. The selected developer is solely responsible for securing all financing required for project development, including state, federal, and other funding sources. Any 328
Resolution No. 6325
Exhibit A - ENA
Attachment No. 1 - RFQ
Attachment No. 2 - Eden Housing Submittle
additional financial commitment from the City would come back to the City Council for approval.

Strategic Plan Alignment
This action directly advances the City’s Strategic Plan by implementing the following goals:

Goal 2.7.2 – Activate City-Owned Sites for Housing/Public-Private Partnerships:

The project leverages City-owned property through a public-private partnership to facilitate the development of affordable housing, maximizing the use of public land to achieve community housing objectives.

Goal 2.1.1 – Facilitate Housing Production to Meet RHNA Obligations:

The project contributes to the City’s goal of facilitating the development of 734 housing units by 2031 by advancing an active housing pipeline project and partnering with an experienced affordable housing developer to help meet the City’s Regional Housing Needs Allocation (RHNA).

Alternatives
Adopt the Resolution selecting Eden Housing as the developer for the 540 Gabilan RFQ for the design and development of a proposed 100 percent affordable multifamily rental housing project; approve the ENA in substantial form and content; authorize the City Manager and City Attorney to finalize the agreement; and authorize the City Manager to execute the final ENA.

Do not adopt the resolution and provide an alternative direction to staff. This is not recommended as it will delay the timeline for development of the site.

Planning/CEQA
Not a Project. The City of Soledad has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

Public Notice Requirements
Not applicable.

Attachment(s):
329
RESOLUTION NO. 6325

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLEDAD SELECTING

EDEN HOUSING, INC AS THE DEVELOPER AND AUTHORIZING THE CITY

MANAGER TO EXECUTE AN EXCLUSIVE NEGOTIATION AGREEMENT (ENA) FOR THE DEVELOPMENT OF 540 GABILAN DRIVE AS A 100 PERCENT

AFFORDABLE HOUSING PROJECT
WHEREAS, the City of Soledad is committed to advancing affordable housing opportunities consistent with the City’s Housing Element, RHNA obligations, and City Council policy direction; and
WHEREAS, in 2024, the City acquired the real property located at 540 Gabilan Drive (“Property”), which has been identified as a strategic site for affordable housing development; and WHEREAS, the City issued a Request for Qualifications (“RFQ”) on September 12, 2025, seeking qualified development teams to design and develop a 100 percent affordable multifamily rental housing project on the Property; and
WHEREAS, two proposals were received and evaluated using a 100-point scoring framework, and Eden Housing, Inc (Eden Housing) was identified as the preferred developer based on its demonstrated experience, financial capacity, and a proposal that exceeds the City’s minimum request by providing 143 affordable housing units integrated with the future Toledo Basin Park; and
WHEREAS, staff recommends entering into an Exclusive Negotiation Agreement (“ENA”) between the City of Soledad and Eden Housing attached hereto as Exhibit A, to establish a formal, time-limited framework for exclusive negotiations toward a potential future development agreement; and
WHEREAS, the ENA does not transfer ownership of the Property, does not approve a specific development project, does not obligate the City to dispose of the Property, and requires Eden Housing to bear all costs associated with feasibility analysis, due diligence, and funding applications; and
WHEREAS, approval of the ENA will not result in a financial impact to the City’s General Fund, as Eden Housing is solely responsible for securing all project financing; and WHEREAS, the City Council finds that approval of the ENA is not a project as defined by the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15378, as it does not result in a direct or reasonably foreseeable indirect physical change in the environment.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Soledad does hereby:
330

1. Select Eden Housing as the Developer for the 540 Gabilan Drive Request for Qualifications for the design and development of a proposed 100 percent affordable multifamily rental housing project; and

2. Approve the Exclusive Negotiation Agreement, attached hereto as Exhibit A, in substantial form and content and authorize the City Manager and City Attorney to finalize the agreement; and

3. Authorize the City Manager to execute the final Exclusive Negotiation Agreement with Eden Housing.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Soledad duly held on the 4th day of February 2026, by the following vote:

AYES, in favor thereof, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ANNA M. VELAZQUEZ, Mayor
ATTEST:

MEGAN HUNTER, City Clerk
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1 EXHIBIT A

EXCLUSIVE NEGOTIATIONS AGREEMENT
This Exclusive Negotiations Agreement (“Agreement”) is made and entered into this __the day of __________, 202_ (“Effective Date”), by and between THE CITY OF SOLEDAD, a municipal corporation of the State of California (“City”), and Eden Housing, Inc, a California non-profit benefit corporation (“Developer”). City and Developer are sometimes referred to herein as a “Party” or collectively as the “Parties.”

RECITALS
A. City, as a municipal corporation, owns or controls real property located at 540 Gabilan Drive in the City of Soledad, which is more particularly described on Exhibit A, attached hereto and incorporated herein by this reference (“Property”).

B. Developer is a ________________________ (tie to the State of California, Monterey County, City as applicable.).

C. Developer intends to develop a _____________________________________ (“Project”).

D. The City now desires to offer Developer the opportunity to exclusively negotiate with the City for the purchase of the Property and the development of the Project.

NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter set forth, the parties hereby agree as follows:

1. Good Faith Negotiations. Subject to all terms and conditions of this Agreement, the City and Developer agree for the time period set forth below to negotiate diligently and in good faith towards the preparation of one or more purchase and sale agreements and any other Project agreement (collectively, “Project Agreement”) which will involve the acquisition of the Property by the Developer for the Project. It is expressly understood and agreed by the Parties that this is a contract regarding negotiations only and does not convey any interest in the Property or a potential agreement or constitute any approval whatsoever of any proposed project. By its execution of this Agreement, the City is not committing to (a) any disposition of land to Developer; (b) the ability to obtain any approvals required from the City to use the Property for the Project or (c) any other acts requiring the subsequent independent exercise of discretion by the City, or its departments. It is further agreed and understood that this Agreement does not imply any obligation on the part of the City or the Developer to enter into any agreement that may result from the negotiations contemplated herein.

City agrees, for the Initial Term and any Extended Term (defined below), not to negotiate with, solicit offers or proposals regarding, or respond to inquiries from (other than to notify the inquiring party, person or entity that City is subject to an exclusive negotiation agreement) any 332
2 other person or entity regarding development, sale, or lease of the Property or any portion thereof.

2. Term of Agreement.

A. The term of this Agreement shall be for a period of one (1) year from the date of final execution by the Parties (“Initial Term”) unless earlier terminated or extended as provided in this Section 2 or Section 13.

B. The City Manager (“Manager”) or her designee acting on behalf of the City, shall have the right to extend the Initial Term of this Agreement for up to an additional one (1) year (“Extended Term”). The decision to extend the Initial Term shall be at the sole and absolute discretion of the Manager. If the Manager elects to extend the Initial Term, the Manager shall notify Developer in writing not less than thirty (30) days prior to expiration of the Initial Term (“Notice of Extension”).

C. If a Development Agreement is executed by the Parties relating to all or part of the Property during the Initial Term or any Extended Term, then this Agreement shall terminate upon execution of said Development Agreement with regard to the portion of the Property subject to said Development Agreement.

3. Project Milestones. Within the time periods set forth in the Schedule of Performance attached hereto as Exhibit B (“Schedule of Performance”), the Parties shall have completed the milestones set forth therein. The City Manager is authorized to agree to extend the date of any task listed in Exhibit B on behalf of the City.

4. Right of Entry. During the Initial Term or any extension thereof, Developer, its representatives, consultants, contractors, agents and employees shall have the right to enter the Property at all reasonable times for the purpose of conducting any tests, studies, analysis or other work necessary to perform the milestones set forth above. The Developer shall provide the City with written notice prior to entry on the Property. The Developer shall have access to all data and information on the Property available to the City, but without warranty or representation by the City as to the completeness, correctness or validity of such data and information. Copies of any tests, studies or analysis obtained or made by the Developer on the Property shall be provided to the City. Any preliminary work by the Developer shall be undertaken only after securing any necessary permits from the appropriate governmental agencies.

5. Disposition of Property. Within the time period set forth in the Schedule of Performance, Developer and the City shall negotiate the terms and conditions of a proposed Project Agreement. It is expressly acknowledged and agreed by the Parties that, until and unless a Project Agreement is signed by Developer and approved by the City Council, in its sole and absolute sole discretion, any drafts or other communications resulting from performance of this Agreement shall not be used to impose any legally binding obligation on the City or the Developer or as evidence of any oral or implied agreement by the City or the Developer to enter into a legally binding document.
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3 6. Disclosure of Confidential Information. Developer acknowledges that the City is subject to the California Public Records Act (“Act”). The Act generally provides that written documents retained by the City are subject to disclosure upon the request of any third party except for specific limited exceptions provided for in the Act. Developer shall designate as “Confidential” any information which Developer provides to the City which Developer desires to keep confidential. If a request for disclosure of any information designated as “Confidential” by Developer is made under the Act, the City shall notify Developer in writing and Developer shall have the opportunity to object to the release of such information.

7. Conflict of Interest.

A. Developer shall at all times avoid conflict of interest or appearance of conflict of interest under any applicable state, federal or local laws, rules and regulations in the performance of this Agreement. Developer shall disclose any conflict of interest, or potential conflict of interest, which exists or arises at any time during the Term of this Agreement. For purposes of this Section, any conflict of interest of a principal, officer, partner, joint-venturer, or employee of Developer shall be conclusively deemed to be a conflict of interest of Developer.

B. City shall have the right to treat any violation of this Section as a material breach of this Agreement, and shall have the right to terminate the Agreement and pursue any and all legal or equitable remedies for said breach of this Agreement.

8. Developer Responsibilities.

A. Development Costs. Developer expressly acknowledges that all expenses and costs it may incur during the Initial Term of or as a result of this Agreement are its sole obligation and responsibility and done at its sole risk, including, but not limited to, any costs associated with any proposed project and any costs incurred to prepare the necessary studies and analysis required for any proposed project. All City fees for processing a development application or any CEQA review are due upon submittal of each and every development application to the City and will be memorialized in a separate reimbursement agreement.

B. Entitlement Applications. Developer shall cooperate with City in the preparation, processing and submittal of the Project planning and zoning approvals and related environmental documents by supplying necessary information and/or development plans concerning the Project.

C. California Environmental Quality Act. The California Environmental Quality Act (CEQA) is applicable to any Project contemplated by this Agreement. Environmental clearance must be obtained prior to obtaining City Council approval for the Project. All studies prepared on behalf of the Developer in support of any CEQA clearance for the Project shall be prepared under the direction of the City and City’s independent judgment.

D. Progress Reports. Developer shall keep City appraised as to the status of all work to be undertaken by or on behalf of Developer as described in the Schedule of Performance.

During the Initial Term or any Extended Term, Developer shall submit to City within ten (10) 334
4 days following City’s request, via email or other reasonable method, a progress update advising City of the status of all work being undertaken by or on behalf of Developer.

9. City Responsibilities.

A. City Assistance and Cooperation. City shall cooperate with Developer by providing information regarding the development potential of the Property.

B. Entitlement Processing. City shall cooperate with Developer in the preparation, processing and submittal of the Project planning and zoning approvals and related environmental documents by supplying necessary technical data and other related information and/or development plans concerning the Project.

C. Progress Reports. City shall keep Developer apprised as to the status of all work to be undertaken by or on behalf of City as described in the Schedule of Performance. Within ten (10) days following Developer’s request, which may be made from time to time during the Initial Term or any Extended Term, City shall submit to Developer, via email or other reasonable method, a progress update advising Developer of the status of all work being undertaken by or on behalf of City.

10. Distinction from Regulatory Authority of the City. Developer understands and agrees that this Agreement does not and shall not be construed to indicate or imply that the City, acting as a regulatory or permitting authority, has hereby granted or is obligated to grant any approval or permit required by law for the development of the Project on the Property as contemplated by this Agreement.

11. Public Hearing. If the negotiations contemplated herein culminate in the execution of a Project Agreement, the Project Agreement will be brought forward for consideration by the City Council, provided, however, such Project Agreement shall become effective only after having been considered and approved by the City Council in its sole and absolute discretion following any public hearing or other actions required by law.

12. Non-discrimination. Developer shall not discriminate, in any way, against any person on the basis of age, sex, race, color, religion, sexual orientation, actual or perceived gender identity, disability, ethnicity or national origin in connection with or related to the performance of this Agreement.

13. Termination. If Developer does not comply in a timely and diligent manner with any material obligation of Developer under this Agreement, City, at its option, may terminate this Agreement at any time by written notice to Developer and failure of Developer to cure the breach within a reasonable period of time following receipt of such notice. The Manager may terminate this Agreement on behalf of the City. The termination shall be effective upon Developer’s receipt of City’s written notice. If, during the Initial Term or any Extended Term, Developer determines that it is not commercially feasible for Developer to develop the Project, Developer shall have the right to terminate this Agreement upon providing written notice to City. 335
5 14. Indemnification. Subject to the limitations of Section 20 below, Developer shall defend, indemnify and hold harmless the City of Soledad, and its officers, employees and agents against any claim, loss or liability arising out of this Agreement or resulting in any way from work performed under this Agreement, including any work performed on the Property pursuant to the provisions of Section 4 above, by Developer, its representatives, consultants, contractors, agents or employees. This indemnification shall survive the expiration or other termination of this Agreement.

15. Notices. All notices and other communications required or permitted to be given under this Agreement shall be in writing and may be delivered by hand, by facsimile transmission with verification of receipt, or by United States mail, postage prepaid and return receipt requested, addressed to the respective Parties as follows:

To City: City of Soledad
Attention: Office of City Manager
XX
XX
To Developer: XX
XX
XX
XX
With a copy to: XX
or to such other address as any party may designate by notice in accordance with this Section.

A copy of any notice of a legal nature, including, but not limited to, any claims against City, its officers or employees shall also be served in the manner specified above to the following address:

XX
XX
XX

16. Waiver of Lis Pendens. It is expressly understood and agreed by the Parties that no lis pendens shall be filed with respect to this Agreement or any dispute or act arising from it.

17. Time of Essence. It is understood and agreed by the Parties that time is of the essence in the performance of the obligations of this Agreement.

18. Assignment. Developer may not transfer or assign any or all of its rights or obligations hereunder except with the prior written consent of City which may be granted or withheld in City’s sole and absolute discretion, and any such attempted assignment without the prior written consent of City shall be wholly void and of no effect.
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6 19. No Third-Party Beneficiaries. This Agreement is made and entered into solely for the benefit of the City and Developer and no other person shall have any right of action under this Agreement.

20. Limitation of Liability. Notwithstanding anything to the contrary at law or equity, in the event of any breach of this Agreement by the City, the sole and exclusive remedy of Developer hereunder shall be the recovery of Developer’s actual out of pocket costs incurred by Developer to third parties to satisfy its obligations under this Agreement. In no event shall Developer be entitled to “expectation damages” i.e., any amounts that Developer would expect to gain were an agreement ever executed, including, without limitation, any amount for potential lost profits.

Neither Party shall be allowed to recover any damages for lost business opportunity, or for any indirect or consequential damages from the other Party.

21. Waiver. Developer agrees that waiver by City of any breach or violation of any term or condition of this Agreement shall not be deemed to be a waiver of any other term or condition contained herein or a waiver of any subsequent breach or violation of the same or any other term or condition. The acceptance by City of the performance of any work or services by Developer shall not be deemed to be a waiver of any term or condition of this Agreement.

22. Governing Law. The law governing this Agreement shall be that of the State of California.

23. Venue. In the event that suit shall be brought by either party hereunder, the Parties agree that trial of such action shall be exclusively vested in a state court in the County of Monterey, or where appropriate, in the United States District Court for the Northern District of California, San Jose, California.

24. Prior Agreements and Amendments. This Agreement, including all Exhibits listed below and attached hereto, represents the entire understanding of the parties as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may only be modified by a written amendment duly executed by the Parties.

Exhibit A Description of Property
Exhibit B Schedule of Performance
WITNESS THE EXECUTION HEREOF on the day and year first hereinabove written. “City”

CITY OF SOLEDAD
“Developer”

EDEN HOUSING
By: _______________________________ By: _______________________________ 337
7 Name: _____________________________
Title: City Manager
Name: _____________________________
Title: ______________________________
APPROVED AS TO FORM:

By: _______________________________
Name: _____________________________
Title: City Attorney
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8 EXHIBIT A

DESCRIPTION OF PROPERTY
339
9 EXHIBIT B

SCHEDULE OF PERFORMANCE

TASK DATE
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DESIGN AND DEVELOPMENT OF A 100% AFFORDABLE

MULTIFAMILY RENTAL HOUSING DEVELOPMENT

REQUEST FOR QUALIFICATIONS
Attachment No. 1
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Overview
Summary
The City of Soledad is seeking qualifications from
experienced affordable housing developers for the
development of a 100% affordable multifamily
rental complex (“Project). This Project will play a
crucial role in advancing the City’s Regional Housing
Needs Allocation (RHNA) goals—totaling 724
housing units across all income levels—by directly
addressing the critical need for lower-income
housing. The proposed development will include
units at all affordability levels - Extremely Low, Very Low, Low, and Moderate-Income households,
averaging between 50% and 80% of Area Median
Income (AMI) with a goal of producing at least 100
units within these categories and supporting the
City’s commitment to equitable, sustainable, and
inclusive growth.

Key Dates:

RFQ Release Date: September 15, 2025
Optional Pre-Proposal Meeting: October 8, 2025,
1:30 PM (PST)
Required Site Visit: October 8, 2025, 3:00 PM (PST)
Questions Due to the City: October 15, 2025, 5:00

PM (PST)
Proposals Due: October 29, 2025
RFQ Contact Information
Beatriz Trujillo
Community & Economic Development Director
[email protected]
831-223-5020
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Contents
Summary of Request..........................................................................................................................4 Property Information .........................................................................................................................4 Site Description / Location / Surrounding Uses ......................................................................... 4 Existing Zoning......................................................................................................................... 6 Site Infrastructure and Constraints ........................................................................................... 6 Site Access............................................................................................................................... 7 Existing Reports and Plans..................................................................................................................7 Expected Terms, Conditions, and Agreements.....................................................................................8 Ownership Structure................................................................................................................. 8 Affordability Terms.................................................................................................................... 8 Conditions ................................................................................................................................ 8 Responses to RFQ ..............................................................................................................................9 Cover Letter.............................................................................................................................. 9 Qualifications...........................................................................................................................10 Experience ..............................................................................................................................10 Identify Major Potential Funding Sources ................................................................................11 Proposed Project Financing Structure .....................................................................................11 RFQ Evaluation Criteria and Selection Process...................................................................................11 Point of Contact...............................................................................................................................13 Submittal Date and Process..............................................................................................................13 Attachments....................................................................................................................................14 Attachment A – Conflict of Interest Statement Form ................................................................15 Attachment B – Property Report ..............................................................................................16 Attachment C – Property Topographic Map and Utilities ...........................................................17 Attachment D – Zoning Map ....................................................................................................21 Attachment E – Project Aerial Map ..........................................................................................22 Attachment F – Phase I Environmental Site Assessment ........................................................23 Attachment G – Geological Report ..........................................................................................24 Attachment H – Flood Plain Map .............................................................................................25 Attachment I - Building Plans...................................................................................................26 343

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Summary of Request
The City of Soledad is seeking qualifications from experienced affordable housing developers— non-profit and/or for-profit—for the design and construction of a 100% Affordable Multifamily Rental Housing Development (“Project”) on City-owned property. This Project will play a crucial role in advancing the City’s Regional Housing Needs Allocation (RHNA) goals—totaling 724 housing units across all income levels—by directly addressing the urgent need for moderate and low-income housing.

The development will focus on households with extremely low, very low, low, and moderate incomes, specifically helping the City meet its RHNA obligation of 50 Extremely Low-Income units, 50 Very Low-Income units, 65 Low-Income units, and 183 Moderate-Income units. The target for the project is to produce at least 100 affordable rental units within these categories. The City’s vision is to create a project that maximizes the number of affordable units feasible for the site, supports equitable, sustainable, and inclusive growth, and delivers long-term community benefits.

The selected developer will be required to ensure long-term affordability, professional on-site management, and maintenance of the project. The City is open to structuring the site control either through a 55-year ground lease with affordability restrictions or through a sale of the property for a nominal dollar amount, with affordability covenants in place for a minimum of 55 years. Proposals offering deeper affordability will receive higher evaluation scores.

Preferred qualifications include:
• Extensive experience developing and managing affordable rental housing for lowerincome households. • Proven capacity to secure State Tax Credit Financing and other competitive funding sources.
• Strong financial resources and long-term management capability. • Demonstrated success in partnering with municipalities to obtain Federal, State, County, and local housing funds.

The City will collaborate with the chosen developer to enhance the project design and facilitate efforts to obtain financing and operational subsidies. If available, the City may provide gap financing sourced from local, State, and Federal housing resources to help meet development costs, contingent upon the availability of such financial resources.

Property Information
A. Site Description / Location / Surrounding Uses
The Project site, 540 Gabilan Drive, is located 360 feet southwest of the intersection of Orchard Lane and Gabilan Drive. The 4.61-acre parcel is undeveloped and currently owned by the City of Soledad. See Figures 1 and 2 on the following page along with Attachment B 344

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(Property Report) for further details. To the south of the site there are several residential neighborhoods and a neighborhood pocket park. East of the project, immediately adjacent to the site, is a market rate multi-family project and an undeveloped residential commercial site on the corner of Gabilan Drive and Orchard Lane.

Figure 1: Property Location Map
Figure 2: Project
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B. Existing Zoning
To the northwest of the Project site is Gabilan Drive, followed by single-family residences (Las Flores Street). To the northwest of the site, only .17 miles from the site, is Blas Santana Park. West of the project, immediately adjacent to the site, is a decommissioned stormwater retention and infiltration pond, known as Toledo Basin, owned by the City of Soledad and planned for a new park.

Figure 3: Property zoning
Table 1 – Surrounding Land Uses and Zoning Designations Table 1 and Figure 3 (Zoning Map) below show the uses and zoning designations of the subject parcel and adjacent properties.

C. Site Infrastructure and Constraints
Site connections to basic infrastructure, including sewer, water, and other utilities, are available from Gabilan Drive. The topography map and location of the onsite utilities are Direction Current Land Uses Current Zoning Designations Project Site Vacant Residential High Density (R-3)
North Single-Family Residential (Las Flores Street) /
Regional Park
Low Density Residential/ Open Space –
Public Facility
South concrete masonry wall and single-family
residential (Serra Lane and Ventura Court)
Low Density Residential
East Multi-Family Residential (730 San Pedro Way) High Density residential / Residential Commercial / Low Density Residential /
Public Facility
West Storm water retention and infiltration pond /
single-family residential (Granada Street)
Public Facility / Open Space / Low Density
Residential
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notated in Attachment C. The Subject Property's ground surface was generally flat on the northeastern side, with moderate slopes to the southwest. Stormwater runoff from the Subject Property is directed by topography towards the stormwater retention ponds on the southern portion of the Subject Property. See Attachment C for further details on the current site constraints and existing infrastructure. The 4.61 acres of the project site are not located in a Special Flood Hazard Area asshown in Attachment G.

D. Site Access
The access point for ingress and egress will be along Gabilan Drive.

Existing Reports and Plans
A. The City of Soledad is offering the opportunity to develop affordable housing units at 540 Gabilan Drive, Soledad, CA. A previous development proposal for this site resulted in the completion of several key technical and planning documents, which are available for review and optional use by prospective developers. These include:

1. Phase I Environmental Site Assessment A comprehensive environmental review has been completed for the site, identifying potential environmental concerns and confirming site suitability for residential development.

2. Geotechnical Report A detailed geotechnical investigation has been conducted, providing valuable information on soil conditions, site stability, and recommendations for foundation design and construction.

3. Approved Site Plans The site has previously undergone the full entitlement process, and the proposed plans were approved by the City. These plans reflect a viable development concept that aligns with local zoning and planning requirements. Attachment H
B. While the City does not require new developers to utilize these existing plans, they are made available as a resource. Developers may choose to:

1. Adopt the approved plans in full or in part to expedite the entitlement process.

2. Modify the plans to better align with their own design and development approach.

3. Propose entirely new plans, subject to the City’s review and approval process.

4. These documents can serve as a valuable starting point for understanding site conditions and development potential. Interested parties are encouraged to request access to the reports and plans during the RFQ process. 347

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Expected Terms, Conditions, and Agreements

1. Ownership Structure
The City of Soledad is the current landowner of the project site. The City is open to negotiating either:
• A long-term ground lease arrangement with the selected developer, or • A potential sale of the property, should a purchase improve opportunities for securing project financing.

Any lease or sale will be structured to ensure that the land is encumbered in support of the affordable housing development.

2. Affordability Terms
The proposed project must be restricted as an affordable housing development for a minimum of 55 years. Key requirements include:
• Rent restrictions consistent with the most restrictive applicable funding source. • Annual adjustment of rents in accordance with applicable affordability standards. • Occupancy restrictions and on-site professional management and maintenance. • Terms will be outlined in a binding Affordable Housing Agreement (AHA) with the City.

Projects that provide deeper or longer affordability than the minimum standards will receive higher scores in the evaluation process.

3. Conditions
The proposed development must meet the following conditions:
• Establish rent affordability standards and definitions of income categories consistent with applicable funding sources.
• Ensure a minimum affordability term of 55 years, as outlined above. • Incorporate incentives provided by the City, as outlined during negotiations. • Include a parking plan that meets City standards and project needs. • Provide professional on-site management and ongoing maintenance to ensure long-term project viability.
• Adhere to occupancy restrictions consistent with affordable housing program requirements.
• Comply with all applicable zoning requirements, building codes, and City development standards.
• Align with community feedback and priorities, including incorporation of a community room and a larger number of three-bedroom units to address the needs of families.
• Address any additional provisions necessary to ensure successful implementation of the project in compliance with City requirements and funding source obligations.
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4. Financing
The selected developer will be responsible for securing permanent financing and operating subsidies for the project. The City may provide gap financing support, subject to availability and competitive allocation processes, using local, state, and federal sources. Potential funding sources include, but are not limited to:
• State Permanent Local Housing Allocation (PLHA)
• HOME Investment Partnerships Program (HOME)
• Community Development Block Grant (CDBG)
• Soledad Housing Authority Fund
• Development Impact Fee Deferral or Waiver
All identified sources are competitive and generally require shovel-ready projects. The City may also identify and pursue additional funding sources in future fiscal years.

Developers are expected to demonstrate experience in leveraging diverse funding sources and to propose additional gap financing strategies as part of their qualifications.

5. Next Steps
Upon selection, the developer will be required to enter into an Exclusive Negotiation Agreement (ENA) with the City. The ENA will:
• Establish a defined negotiation period.
• Outline the roles and responsibilities of both parties. • Serve as the framework for negotiating and executing binding Development and Affordable Housing Agreements.

The ENA process ensures that the City and the selected developer have a clear, mutual understanding of the project expectations, financing commitments, and long-term affordability requirements prior to the execution of final agreements.

Responses to RFQ
To expedite and maintain consistency in the evaluation process, each response to this RFQ is to be organized in accordance with this Section. All submissions should contain a thorough description and analysis of the following information in the order presented below:

A. Cover Letter
The cover letter should include the following information:

1. Developer name, office location(s), telephone numbers, and email addresses of the main contact(s) including all principals.

2. Primary contact person for the submitted RFQ.

3. Number of years the developer has performed requested design, development, and property management services.

4. Type of organization: individual, partnership, corporation, nonprofit, other 349

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(please specify).

5. Indicate if the developer has any conflicts of interest related to working for the City and your other current contracts.

B. Qualifications
Developers should provide the information and qualifications below:

1. Provide a complete list of the services you can provide to the City under this RFQ as a developer.

2. State why you are qualified to provide the specified design, development, and property management services.

3. Describe how your team will design, deliver, and manage the project.

4. Present resumes for key project team members who will participate in this project.

5. Include an organization chart.

6. Describe how the project team will be managed.

7. Describe the developers’ quality assurance efforts.

C. Experience
Developer should provide the information below:

1. Present relevant experience with public agencies contracts like the City’s Project.

Submittals should include relevant experience with at least three different public agencies where design, construction, and management services were provided in the last five years.

2. Provide the major aspects of the scope and contract amount, the name of the public agency these services (design, construction, and management) were provided for, and full contact information (address, phone, and email address) for the public agency’s project manager.

3. List proposed key personnel along with their expertise, professional experience, training, certifications, office location and role they will play on the design, development property management of the Project.

4. A description of recent affordable multi-family rental development and property management experience (last 10 years); and provide four to five samples of similar development projects completed within the last five years as well as four to five related projects where property management services were provided.

Proposed Project Description
Provide a proposed project description addressing all the following criteria:

1. Development proposed unit count (minimum proposal unit count should be 50 rental units) and affordable unit composition by income categories.

2. Type of structures, square footage, number and size of units, bedroom and bathroom composition, community rooms and recreational areas.

3. The proposed development should be designed and developed to pursue the 350

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California Tax Credit Allocation Committee (CTCAC) Funding and have a 55-year affordability period.

Proposed Project Conceptual Site Plan
The conceptual site plan for the development must include project statistics/tabulations, including the number of units/bedrooms, open space/community rooms, outdoor amenities and recreation facilities, total parking spaces (garages, covered and open), stormwater drainage, access, and proposed setbacks and conceptual landscape.

Proposed Project Financing
A. Identify Major Potential Funding Sources
Identify potential major funding sources to be pursued for the development, construction, and operations of the proposed Project.

B. Proposed Project Financing Structure
Provide the proposed Project’sfinancing structure, including specific sources and uses of funds, including identified need for “gap” financing.

Estimated Project Schedule
Provide a proposed project schedule that outlines the order that development is intended to occur aswell asthe potentialtiming forthe development. Incorporate any project phasing into the proposed Project schedule.

RFQ Evaluation Criteria and Selection Process
A. Evaluation Criteria
Selection will be made based on the following 100-point criteria:

Criteria Points
Proposed Conceptual Development 20 points
Recent Relevant Experience of Affordable Housing Projects 20 points Financial Capacity, Ability to Deliver on Time and on Budget 30 points Relevant Experience with Public/Private Partnerships 20 points Completeness of Responses to RFQ Request for Information 5 points Quality of submittal 5 points
Total 100 Points
B. Process and Schedule
As noted previously, the purpose of this RFQ is to select a development team to design, develop and manage the proposed affordable rental housing project at 540 Gabilan Drive in Soledad. The City will work with the selected developer to refine the concept into the final design. The selection of the developer will be made utilizing the following process/timeline:
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Date Task
September 15, 2025 Release of the RFQ
October 15, 2025 Deadline for interested developers to submit written questions and requests for clarification to City’s point of contact listed below.

October 8, 2025 Required Project Site Visit
October 20, 2025 City to email an Addendum including a written response to all parties on the distribution list and/or who submitted a written inquiry.

October 29, 2025 Deadline to submit a response to this RFQ.

November 7, 2025 City to review and evaluate proposals. Upon completion of review, the City a may, at its discretion, elect to request further information or clarification from respondents.

November 2025 Upon the completion of this process, City will determine whether it will conduct virtual interviews or choose to commence
negotiations with its preferred developer.

November - December
2025
Selected developer recommendation to City Council.

December 2025-March
2026
The City will work with the selected developer to refine the concept into the final design.
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Point of Contact
All questionsregarding this RFQ should be directed and e-mailed to:

City of Soledad
Beatriz Trujillo, Director
Community & Economic Development Department
City of Solidad
831-223-5020
[email protected]
Submittal Date and Process
Completed RFQ proposals are to be submitted electronically via PlanetBids by 5:00 P.M. PST, on Wednesday, October 29, 2025. If the previously stated submittal option does not work for you or your organization, please coordinate with Beatriz Trujillo for an alternative method of submission.

Proposals received after the due date will not be considered. There will be no “bid opening.” The pre-qualification of respondents is not required, yet all interested developers responding to the RFQ are required to comply with the provisions of the laws of the State of California, the City of Soledad, and County of Monterey Municipal Codes. In addition, proposers are required to take affirmative action to ensure non-discrimination in employment practices and must warrant and declare that they do not currently have any potential or perceived conflict of interest (personal and/or property interest in the subject scope of work). See Attachment A for the Conflict-ofInterest Statement form.

Disclaimers
A. General Conditions
The City reserves the right to: 1) reject any or all responses, 2) postpone award of the contract for a period not to exceed sixty (60) days from the date replies are due. 3) waive informalities in the responses, and 4) take whatever action or make whatever decision it determinesto be in the best interest of the City. All proposals will remain in effect and legally binding for at least sixty (60) days from the date of submission. A contract agreement should not be binding or valid with the City unless and until it is executed by authorized representatives of the City, and the selected developer.

The City reserves the right to request additional information from all prospective firms as deemed necessary by the City to evaluate the proposals. This process may not be used, however, as an opportunity to submit missing documentation or to make substantive revisions to the original proposal. A prospective firm may withdraw their proposal at any time prior to 353

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the date and the time which is set forth herein is the deadline for submitting proposals.

B. Public Nature of Proposal Materials
All proposals and related correspondence, reports, schedules, attachments, and other documentation submitted with the proposal will become the property of the City and a matter of public record. All documents submitted in response to this RFQ will be subject to disclosure if requested by a member of the public. There are a limited number of narrow exceptions to these disclosure requirements. Any information that a prospective developer considers confidential, the disclosure of which would be an unwarranted invasion of personal privacy, should be marked “Confidential,” or “Proprietary.”
During the selection process, the City will keep such information confidential and will not disclose it except as may be required under applicable law, including the California Public Records Act. This meansthat, depending on the nature ortiming of the request, or future court decisions, that information may not remain private and may be publicly disclosed. Proposals submitted by developers should not be considered confidential or proprietary and may be subject to disclosure.

Attachments
The below attachments are included as part of this RFQ:
• Attachment A – Conflict of Interest Statement Form
• Attachment B – Property Report
• Attachment C – Property Topographic Map and Utilities • Attachment D – Zoning Map
• Attachment E – Project Aerial Map
• Attachment F – Phase I Environmental Site Assessment
• Attachment G – Geotechnical Engineering Services Report • Attachment H – Existing Plans
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Attachment A – Conflict of Interest Statement Form
Conflict of Interest. Respondent warrants and declaresthat it presently has no interest, and shall not acquire any interest, direct or indirect, financial, or otherwise, in any manner or degree which will render their proposal a violation of any applicable local, state, or federal law. Respondent further declares that, if selected, no subcontractor or person having such an interest shall be employed. If any conflict of interest should nevertheless hereinafter arise, Respondent shall promptly notify City of the existence of such conflict of interest so that City may determine whether to reject proposal.

Printed Name and Title
Signature and Date
355
Attachment B – Property Report
356
Attachment C – Property Topographic Map and Utilities
Click here to see the Topographic Map
357
Attachment C – Property Topographic Map and Utilities
For the full Storm Drain Master Plan, click here.
358
Attachment C – Property Topographic Map and Utilities
For the full Sanitary Sewer Master Plan, click here.
359
Attachment C – Property Topographic Map and Utilities
For the full City of Soledad Water System Master Plan, click here. 360
Attachment D – Zoning Map
361
Attachment E – Project Aerial Map
362
Attachment F – Phase I Environmental Site Assessment
Click here to see 540 Gabilan Dr, Phase I Environmental Site Assessment 363
Attachment G – Geological Report
For the full Geological Report, click here
364
Attachment H – Flood Plain Map
For the full flood plain map, click here.
365
Attachment I - Building Plans
The property was once considered for development, and we have included the previously approved (now expired) building plans for 540 Gabilan Drive for reference. Click here to view the plans.
366
22645 Grand Street | Hayward, CA 94541 | Tel: 510-582-1460 | edenhousing.org Broker License No. 872400
October 28, 2025
Beatriz Trujillo
Director, Community & Economic Development Dept.

City of Soledad
248 Main Street
Soledad, CA 93960
Subject: RFP Response
540 Gabilan Drive Affordable Housing Project
Dear Beatriz:

We are pleased to submit our proposal for the 540 Gabilan Drive project, a model of Housing Element compliance that embodies the City of Soledad’s commitment to housing equity, sustainability, and family-oriented development. This thoughtfully designed community integrates affordability with environmental resilience, aligning perfectly with state and local priorities.

Eden Housing, Inc. brings over five decades of expertise in delivering high-quality affordable housing solutions across California. Since its founding in 1968, Eden has developed, acquired, and preserved more than 12,600 affordable homes, serving hundreds of thousands of residents statewide in our history. Our comprehensive approach integrates real estate development, property management, and resident services, ensuring long-term community stability and success.

The project’s site plan illustrates these values through:
• Neighborhood: A residential complex featuring multi-story units and private gardens, promoting density and diversity.
• Connection: Clearly defined pedestrian pathways and directional access points, enhancing walkability and connectivity.
• Nature: Green spaces, native landscaping, and a central courtyard that harmonizes the built environment with natural elements.

These design strategies reflect Soledad’s cultural emphasis on family and community while advancing sustainability goals.

The project’s main contacts include:

Andrea Osgood Dixie Baus
Chief of Real Estate Development Director of Real Estate Development
Role: Signatory for Eden Housing Role: Project Point of Contact 22645 Grand Street 22645 Grand Street
Hayward, CA 94541 Hayward, CA 94541
[email protected] [email protected]
Phone: 510-247-8103 Phone: 408-891-2606 (mobile)
Attachment No. 2
367
Eden Housing, Inc. and its employees have no known conflicts of interest working for the City of Soledad or with any of our other business-related contractual obligations.

Please see the signed Conflict of Interest Form.

The need for this development is urgent. According to the Regional Housing Needs Allocation (RHNA) for 2023–2031, Soledad must plan for approximately 1,180 units across all income levels. Currently, the city has only 449 deed-restricted affordable units, leaving a gap of over 700 units—particularly for farmworker and workforce housing. Additionally, 78% of extremely low-income renters statewide pay more than half their income on housing, a trend mirrored locally. Addressing this gap is critical to reducing cost burdens and ensuring housing stability for vulnerable populations.

The 540 Gabilan Drive project is well-positioned to secure funding under programs that prioritize housing equity, environmental resilience, and family-oriented development. I am confident that this initiative will serve as a cornerstone for meeting Soledad’s housing goals and fostering a vibrant, inclusive community.

Thank you for considering this important project. We welcome the opportunity to discuss its benefits further and explore ways to support its successful implementation.

Sincerely,
Dixie Baus
Eden Housing, Inc.
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2 / 1/ QUALIFICATIONS

LEAD DEVELOPMENT ORGANIZATIONS

PRINCIPAL AUTHORIZED TO LEGALLY BIND

THE ORGANIZATION

DEVELOPER EXPERIENCE

DESIGN TEAM EXPERIENCE
Camphora Apartments, Soledad
KTGY Architects
44 Units, 9 du/ac
100% Affordable Housing for
Farmworkers
GaSoledad Gabilan RFP Response
Respectfully submitted:

October 28, 2025
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LEAD DEVELOPMENT ORGANIZATION
/ ABOUT EDEN HOUSING
Form of Organization Project-specific LP
Business Address / Location 22645 Grand St, Hayward, CA 94541 Role & status of Equity Partners Tax Credit Equity- Investor to be determined Developer Partner Affiliation Eden Housing, Inc.

Project Point of Contact Dixie Baus
Eden Housing is one of the oldest and most experienced affordable housing non-profit organizations in California and is based in Hayward. Since our inception in 1968 (57 years in operation), Eden has developed, acquired, or rehabilitated more than 11,000 affordable units and currently provides homes to more than 25,000 lower-income residents. As a mission-driven non-profit, we serve low- and moderate-income families, seniors, and people living with disabilities. Incomes of our residents typically range from 20% to 60% of the area median income.

Eden’s work goes beyond building high quality buildings, as we strive to create strong communities for the residents who live in our housing and a permanently affordable, high-quality asset for the cities we partner with. Under the Eden Housing umbrella, Eden Housing Management, Inc. (EHMI) provides quality onsite management and maintenance of our affordable homes, and Eden Housing Resident Services, Inc. (EHRSI) offers free onsite support services and programs to help ensure our residents succeed.

EHMI and EHRSI often receive commendations from our partners who know and see firsthand the work we do – including city staff, neighbors, police departments, and financial investors.

Together, the integrated company brings a combined package of experience and expertise which covers the spectrum of activities involved in developing, owning, managing, and servicing a high-quality housing development. This combined effort assures that the quality design and construction of the project is preserved through the careful long-term maintenance of the property and ongoing care and service to residents.

Throughout Eden’s 57-year history, Eden has been actively adapting to and influencing the affordable housing industry in California. We strive to shape housing policy every year and innovate new financing structures with every project to ensure the long-term success of our properties, and in turn, our residents. Eden Housing was the first developer in the State of California to receive tax credits – for our 54-unit Cypress Glen affordable family housing development – and we have been continually successful at acquiring 9% and 4% tax credit allocations for our projects.

Eden’s pipeline has grown and we continue to add to California’s inventory of affordable housing as housing costs reach a critical point in our history. We are highly experienced in obtaining affordable housing financing through HUD and HCD, as well as local housing authority, county, and city resources. We recognize that our success rests largely on our partnerships with local governments and community organizations – from early local project approvals to long term resident services – and seek to continually strengthen these relationships.

Eden Housing has nearly 500 employees, and its main office is in Hayward, CA. Eden is consistently named one of the Top 50 affordable housing companies in the nation by Affordable Housing Finance Magazine, the leading national publication that ranks and reviews affordable housing.
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RECENT NON-METRO AFFORDABLE DEVELOPMENTS
Dominguez Hills, Carson, CA
Steinberg Hart
Warner Creek, Novato, CA
Eden Housing
Agrihood, Santa Clara, CA
Steinberg Hart
Meridian, San Jose, CA
Steinberg Hart
Foss Creek Court, Healdsburg, CA
Eden Housing
Tabaso Gardens, Watsonville, CA
Eden Housing
Washington Creek, Petaluma, CA
Eden Housing
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RECENT AWARDS & RECOGNITION
Eden Housing stands as a beacon of innovation and commitment in the realm of affordable housing. The accolades we have garnered are a testament to our unwavering dedication to excellence in design, resident services, and organizational culture. These honors recognize our design and developmental achievements, progressive business practices, and our holistic approach to community building and resident support.

Recent Awards and Recognitions:
• Top 50 Affordable Housing Ownersin the U.S., Affordable Housing Finance Magazine, 2016- 2025
• Top 50 Affordable Housing Developersin the U.S., Affordable Housing Finance Magazine, 2025, 2024, 2021
• Best-in-Class Employer, Gallagher, 2021-2025
• Golden Nugget Awards:
» Solaire Apartments (San Jose), 2025
» Blue Oak Landing (Vallejo), 2024
• Healthiest Employer in the Bay Area, San Francisco Business Times and Silicon Valley Business Journal, 2016-2017, 2019
• Best Place to Work in the Bay Area, San Francisco Business Times and Silicon Valley Business Journal, 2015-2017
• Excellence in Motion Award of Merit, Metropolitan Transportation Commission (MTC), for transit-oriented developments:
» Weinreb Place (Hayward)
» Ford Road Plaza and Monterey Villa (San Jose), 2016
These awards underscore Eden Housing’s holistic approach to affordable housing- merging architectural excellence with community-centric services. Our consistent recognition across various facets of development and community engagement highlights our role as a leader in creating sustainable, inclusive, and vibrant communities throughout California. 372
AUTHORIZED PRINCIPAL: ANDREA OSGOOD
/ CHIEF OF REAL ESTATE

DEVELOPMENT
[email protected]
/ Education • UCLA Graduate School of Public
Policy and Social Research:

Master of Arts, Urban Planning
• Pomona College: Bachelor of Arts
with Honors
• LISC-Tax Credit & Bond Financing
Training Institute
• The Bay Area Ross Program in
Real Estate – In Association with
The USC Lusk Center for Real
Estate
/ Professional Affiliations
• SV@Home, Board Member
• Housing Leadership Council
of San Mateo County, Board
President
• Member, East Bay Housing
Organizations
• Member, Non-profit Housing
Association of Northern
California
Andrea Osgood was promoted from Senior Vice President of Real Estate Development to Chief of Real Estate Development in June 2023. Since joining Eden’s development team in
2008, Andrea has overseen the development of nearly 3,000 new homes and the acquisition of over 1,500 existing units throughout California, supervising a pipeline of $1.8 billion in assets.

Under her leadership, Eden’s real estate development
team expanded the organization’s presence in San Diego
and Southern California, as well as opening a new office in Sacramento. She’s currently chargedwith spearheading the organization’sstrategic plan goal of adding 10,000 units within the next 10 years.

In addition to leading a robust pipeline of new development projects totaling over 4,000 homes, Andrea oversees Eden’s renovation efforts of its existing portfolio and assets acquired from other nonprofits. Despite a challenging funding
environment, Andrea and her team have found innovative
waysto reinvest in Eden’s portfolio, ensuring the preservation of affordable housing options for vulnerable communities.

She now oversees a growing department acrossthe state,
affirming Eden’s commitment to building and preserving
affordable housing.

Andrea has significant experience in construction
management, construction litigation, and public contracting.

She worked as a construction management consultant for
Capital Projects of UC Berkeley where she was involved in large rehab and new construction projects – from planning and development through funding and construction.

Additionally,she wasthe lead paralegal in the construction group at Hanson Bridgett Marcus Vlahos & Rudy, a San
Francisco law firm.

Andrea is a sought-after speaker and panelist, and as Board Chair of the Housing Leadership Council of San Mateo County, she has been a steadfast advocate for affordable housing solutions. She also serves as a board member and Treasurer of SV@Home, a housing advocacy organization in Santa Clara County.
/////////////////////////////////////////////////////////////// /////////////////////////////////////////////////////////////// /////////////////////////////////////////////////////////////// ///////////////////// 1 / DEVELOPMENT TEAM INFORMATION / SOLEDAD GABILAN / October 2025 Blue Oak Landing / Eden Housing
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//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 1 / DEVELOPMENT TEAM INFORMATION / SOLEDAD GABILAN / October 2025 EDEN HOUSING & STEINBERG HART POINT OF CONTACT: DIXIE BAUS
As Director of Real Estate Development, Dixie oversees an acquisition team in Northern California and participates in high level project structuring. She compiles and presents comprehensive deal analysis packages and underwrites
risk associated with acquisition opportunities for
Eden’s Executive Team and selected review committees
participating in strategic planning, business plan
development and implementation strategies for the Real
Estate Development Department. She also leads the
entitlement process to gain project zoning and design
approvals in Northern California.

Dixie joined Eden Housing in 2018 and has 35 years of
PROJECT MANAGER: TAMI STRAUSS
As Associate Director of Real Estate Development, Tami
leads a team that originates, coordinates and implements all aspects in the development of affordable housing
projects. This may include new construction, acquisition and rehabilitation, portfolio syndication, and joint
ventures with other developers. She explores potential
project sites, engages in feasibility analyses, organizes critical community support, and oversees design and
construction management among other essential
responsibilities. She also researches and secures sources of pre-development, construction and permanent
financing from public and private sources.
/ DIRECTOR OF REAL ESTATE

DEVELOPMENT
[email protected]
/ Education
• Bachelor of Science in Criminal
Justice
/ Professional Affiliations
• SV@Home Coalition of Housers
(COHO) Working Group
• Sacramento Housing Alliance
Affordable Housing Committee
• East Bay HousingOrganizations
(EBHO) Oakland committee
member
• Board of Directors of Mission City
Community Fund
• Prior Affordable Housing
Representative for the City of
Gilroy, CA General Plan Advisory
Committee
• Prior City of Marina, CA and the
City of Santa Clara, CA General
Plan Steering Committee
real estate industry experience in affordable and marketrate multifamily management, development, compliance, asset management and financing. She has participated
in the acquisition, development and finance processes
acrossthe states of California, Hawaii, Arizona, Missouri, Texas, Illinois and Florida totaling approximately $2B in total development costs.
/ ASSOCIATE DIRECTOR OF

REAL ESTATE DEVELOPMENT
[email protected]
/ Education
• Bachelor of Arts (BA) degree in
Geography at StateUniversity of
New York at Albany
• Master’s degree in urban
planning from New York
University
/ Professional Affiliations
• Board member of the Housing
Leadership Council of San Mateo
County (Vice-Chair in 2024)
Tami joined Eden in 2021, after serving as the Deputy
Director of the Norwalk Redevelopment Agency in
Norwalk, Connecticut. She was a lead architect of the
city’s affordable housing projects, programs and policies that resulted in nearly 1,000 affordable apartment homes being newly constructed, rehabilitated or preserved.

Tami brings more than 30 years of knowledge and
experience in community development, affordable
housing and real estate investment in local government, nonprofit and private sectors. She is inspired by a
passion for housing justice and equity, ensuring that
low to moderate-income residents can live in thriving
communities of their choice.
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NEW MITCHELL PARK

APARTMENTS
/ Highlights
• 50- affordable rental apartments for Intellectuals with Developmental Disabilities, 30%-50% AMI • Developed by Eden Housing, Community Engagement and Architecture by FORA • $49.4 million development cost / construction start: Feb 2021, end: Est. Sept 2025 • Funding Sources: 9% LIHTC, County of Santa Clara, City of Palo Alto • Reference: Natalie Monk, HCD Division Manager, Office of Supportive Housing, County of Santa Clara (408) 510-0335, [email protected]

MITCHELL PARK PLACE
/ PALO ALTO, CA
As Palo Alto's 1st ministerial approval for a large new housing project, Mitchell Park takes inspiration from the surrounding Eichler homes and interprets it at a larger scale with strong sloping roof lines, clerestory windows, vertical board siding, and a palette of natural materials. The L-shaped building creates a protected courtyard for residents away from vehicular traffic and parking; highlights include a sensory garden, community garden beds, a labyrinth, and outdoor kitchen. The building steps from 4-stories to 3 to reduce mass along the street and is screened by a wide setback and trees. 15 1
1 10
5 4
2 3
1 2
3 10
2 5
8 7
11 9
6 1
1 13
14 1 6 2
12 10 1
2 10
2 2
1 E CHARLSTON RD

MITCHELL PARK PROJECT
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• 130 affordable apartments, 1.03 acres, 126 units per acre, 30%-60% AMI including formerly homeless PSH • Developed by Eden Housing, Architecture by FORA
• $82.2 million development cost / construction start: October 2021, end: December 2023 • Funding Sources: Infill and Infrastructure Grant- IIG (HCD), LIHTC, Tax-exempt Bonds, No Place Like HomeNPLH (County), Project-Based Voucher Program (Housing Authority), Measure A Funds (County) • Reference: Consuelo Hernandez, Deputy County Executive, County of Santa Clara, (408) 510-8595 , [email protected]

SOLAIRE APARTMENTS

SAN JOSE, CA
This urban infill project completed December 2023 provides 130 new homes in the Diridon Station neighborhood with half reserved for permanent supportive housing for formerly homeless individuals. During programming and design phases, the project team integrated Trauma Informed Design principles, derived from Trauma Informed Care tenets, to emphasize physical, psychological, and emotional safety while promoting empowerment for residents and staff. The common areas and ample outdoor open space provide residents with opportunities to build community while murals and views to the outdoors connect residents to the natural world. 376
//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 1 / DEVELOPMENT TEAM INFORMATION / SOLEDAD GABILAN October 2025 EDEN HOUSING & STEINBERG HART / Highlights
• 124 units for large families, 1.54 acres, 81 units per acre, 30%-60% AMI (Average 50%) • Developed by Eden Housing and For the Future Housing
• $208 million development cost
• Funding Sources: 4% LIHTC, AHSC, City of Santa Cruz, Measure S Library Funds, Parking Revenue Bonds, Congressional Earmark, Central Coast Community Energy Grant, Project Based Vouchers • Reference: Bonnie Lipscomb, Executive Director of Economic Development, City of Santa Cruz, (831) 420-5150, [email protected]

DT LIBRARY/AFFORDABLE HOUSING

SANTA CRUZ, CA
Eden Housing and For the Future Housing were selected by the City of Santa Cruz to develop a cultural hub embodying the spirit of Santa Cruz’s diverse and creative community. The development features a multi-story mixed-use building which includes: a mix of 124 studios, one, two, and three-bedroom homes, a modern public library with resources for all, a childcare facility, a commercial space, and public parking to serve the Downtown Santa Cruz retail community. The planned target population for the community is large family. The apartments are on a 1.54-acre site with an elevated outdoor common area space, play structure, community garden, laundry rooms, and an attached public library, parking garage and a daycare facility. 377
Housing in the Spirit of Soledad –
Rooted in Land, Elevated by Community
Multi-Family Units
Designed
150K+
Affordable Units Designed
or in Construction
2,200+
LEED Certified /
Zero Net Energy projects
150+
Residential Projects
150+
Steinberg Hart has decades of proven experience working with housing developers to provide financially feasible innovative projects. Our guiding principle and specialization is a holistic approach to housing design – one that is sensitive to the idea of timeless design, celebrates human emotion, and creates a unique sense of place. Today, we are working on affordable and supportive housing projects in Santa Clara, Daly City, San Ramon, San Jose, Sunnyvale, and Los Angeles, CA.

Designing housing for Soledad means designing for a community where family comes first and connection matters. By incorporating visual and physical links through ground-level courtyards that open to one another, we create environments that are accessible, welcoming, and protected from the sun — well-suited to Soledad’s climate and way of life. These spaces invite social interaction and reinforce the shared identity of the Soledad community. Drawing on our experience designing homes that prioritize resident wellness and support upward mobility, every element — from building entries and pathways to the park, to the design of communal spaces — is considered in relation to how people will live, gather, and grow together.

The result is a connected community where people know their neighbors, feel a sense of belonging, and thrive together.

MERIDIAN Sunnyvale, CA | 135,000 SF | 90 Units
The Meridian affordable housing project in Sunnyvale provided the City with 90 homes embracing permeability through its open courtyards, street-facing townhomes, and a landscaped paseo that invites movement and connection. By linking the commercial corridor with the surrounding neighborhood, the design activates the public realm and fosters a sense of community and inclusion.

SANTA CLARA AGRIHOOD Santa Clara, CA | 261,360 SF | 361 Units Santa Clara Agrihood blends housing, agriculture, and open space into a walkable, community-focused environment. With 1.5 acres of urban farming, 361 mixed income homes, and shared courtyards, this LEED Gold sustainable design prioritizes connection to nature and neighbors. Thoughtful transitions between building types and careful integration with the surrounding neighborhood ensure that the public spaces are welcoming, functional, and deeply rooted in place.

AIA DESIGN AWARD WINNER
Designing people-focused housing solutions that connects to place, purpose, and community.

AIA DESIGN AWARD WINNER
378
Designing For People That Live, Work, and
Play In The Community
Experience designing human-scaled, contextual design
Our design philosophy is rooted in human-scaled, contextual architecture that responds to both place and people. We draw from the character of the surrounding community, weaving in thoughtful massing, inviting materials, and welcoming the gifts of the site and its surroundings. Every design decision—whether at the scale of a doorway or a public plaza—is an opportunity to enhance comfort, accessibility, and beauty. The result is built environments that feel personal, livable, and distinctly rooted in their setting.

ENCASA Sunnyvale, CA | 990,144 SF | 465 Units
EnCasa provides 465 apartment units in a variety of multifamily project layouts and construction types. The project includes walk up apartments with private garages, units wrapping structured parking, and a courtyard building with attached structured parking.

Each parcel will include individual leasing centers and amenities such as fitness centers, pools, and spas. The landscaping and general architectural motif will link the sites while allowing for separate identities and product differentiation.

SOUTHWEST VILLAGE Daly City, CA | 265,000 SF | 152 Units Southwest Village is comprised of five residential buildings and one, 4,000 SF community building that accommodates a multipurpose room with kitchen, property management and social services offices. Resident health and wellness was a design priority. The design takes advantage of the southern California climate, with indoor/ outdoor amenities, like picnic areas, children’s playground, and recreational green space.

The project also provides a pathway to the creek improvements and the southern portion of the Orange Line Light Rail & Euclid Avenue Transit Center Station.

PACIFIC SHORES Santa Cruz, CA | 225,000 SF | 206 Units
Pacific Shores approaches the public-private partnership and availability of community amenities in a new way. The 8 housing structures are all 3-story buildings designed with open breezeways. To support community focus, they are strategically placed around an urban central courtyard anchored by a community building with stunning panoramic ocean views. Contextual elements, such as the monarch butterfly habitat, informed the character and detailing of the units, including the rooflines that mimic the typical angles of the Monarch’s wing and a color palette influenced by their distinctive hues.

ALTAIRE Palo Alto, CA | 4 Acres | 103 Units
This upscale residential complex includes 3- and 4-bedroom townhomes and condominiums with contemporary, multi-level layouts and designer details, secured community parking, and private outdoor spaces with landscaped open spaces and walkways. Sustainable living was one of the prime considerations in the design of this residential development. Altaire meets the Department of Energy’s Energy Star program for buildings and is Green Point Rated by Build It Green, a non-profit organization dedicated to promoting healthy, energy and resource efficient building practices.

SAGE PARK Gardena, CA | 143,935 SF | 90 Units
Consisting of 90 high-quality one-, two- and three-bedroom rental homes for Los Angeles Unified School District teachers, credentialed teachers, classified workforce, and the general public, Sage Park offers an engaging community that is appealing to teachers and workforce, and other residents, who value living sustainably, creatively, simply, and affordably in a high quality and desirable community setting. The complex o includes a fitness center, beautifully landscaped open space, multi-use community room and a community garden.
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Steinberg Hart
KATIA MCCLAIN AIA, NOMA, LEED BD+C, DBIA, LFA
Partner
SUNSET DEVELOPMENT COMPANY + EDEN HOUSING San Ramon, CA 2453 Camino Ramon Affordable Housing 240,000 SF | 200 Units Canopy Affordable Housing 226,000 SF | 161 Units
Orchards Affordable Housing 211,000 SF | 100 units
RELATED AFFORDABLE Sunnyvale, CA
Meridian Affordable Housing 1.4 Acres | 90 Units
RELATED AFFORDABLE Los Angeles, CA
Alveare Senior Housing 285,000 SF | 100 Units
Alveare Family Housing 285,000 SF | 105 Units
Alveare Permanent Supportive Housing 285,000SF | 98 Units RELATED AFFORDABLE San Diego, CA
Southwest Village Affordable Apartments 2.3 acres | 81 Units THE CORE COMPANIES San Clara, CA
Santa Clara Agrihood Affordable Housing 261,000 SF | 361 Units PATH VENTURES San Jose, CA
Villas on the Row Affordable Housing 108, 900 SF | 94 Units JUHSD + CORE COMPANIES + EDEN HOUSING Daly City, CA
Serramonte del Rey Affordable Housing 158,000 SF| 152 Units SOLEDAD UNIFIED SCHOOL DISTRICT Soledad, CA
Main Street Middle School*
THE SOBRATO ORGANIZATION San Jose, CA
Sobrato Philanthropies Youth Center 15,000 SF

EDUCATION
San Jose State University
Masters in Urban Planning, Urban Design
& Community Planning
La Salle University, Mexico City, Mexico
Bachelors of Architecture, High Honors

REGISTRATION
Licensed Architect, CA
LEED Accredited Professional BD+C
Designated Design-Build Professional
(DBIA)
Living Future Accreditation

AFFILIATIONS
American Institute of Architects (AIA)
National Organization of Minority Architects
(NOMA)
Design Build Institute of America
Certification (DBIA)
United States Green Building Council
(USGBC)
San Jose Downtown Association,
Downtown Design Committee
San Francisco Bay Area Planning and Urban
Research Association (SPUR), Member
Society for College and University Planning
(SCUP)
AIA Silicon Valley Women In Architecture
(WIA)
Bay Area Council
San Jose State Latino Advisory Council
As Managing Partner of Northern California, Katia plays a major role in the success of many for the firm’s largest and most complex projects. With three decades of experience leading large scale affordable housing projects, she is a recognized thought leader creating homes in the communities we live in. For Katia, housing is about more than just providing shelter - it is creating homes, support engagement, connections and other benefits to all. She has a passion and deep understanding of the power of design and creation of environments that elevate and shape people’s lives.

PROJECT ROLE: Architect of Record
* Experience prior to Steinberg Hart
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25 2 / DEVELOPMENT PROPOSAL

SITE PLAN & DEVELOPMENT PROGRAM

PROJECT NARRATIVE - CONCEPT & VISUALS

TRANSIT & MULTIMODAL CONNECTIVITY - THE PARK

TDM STRATEGY

PROJECT SCHEDULE

CULTURAL COMPETENCY
Canyon Flats
Eden Housing
71 Unitsin Fremont
100% Affordable Housing for Families
Transit Oriented Development
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Role: Sponsor and Manager
Soledad Gabilan (working name)

ORGANIZATIONAL CHART
The proposed ownership structure for each stage of the development isillustrated below. At the close of construction financing, the Placeholder entity will be replaced with a tax credit equity investor. Eden Housing Inc. will provide all necessary completion and financing guarantees for this project, as we do on all our projects. Eden has a strong balance sheet, and providing such guarantees is a matter of course for our organization.

Eden Housing’s Crescent Grove Affordable Housing in Castro Valley, CA A To Be Formed, LP - New Tax Credit Partnership / Owner A To Be Formed, LLC - Managing General Partner, .01%
Baywood Apartments, Inc.

Placeholder Entity
(an Eden Housing Affiliate)
Limited Partner

99.999%
Eden Investments Inc.

Sole Member & Developer / Sponsor
382

SITE PLAN & DEVELOPMENT PROGRAM
/ ALIGNING WITH COMMUNITY VISION
Our proposal is rooted VTA’s bold ambitions for
Transit-Oriented Communities (TOC): to catalyze
equitable, climate-smart development that prioritizes
ridership, resilience, and vitality. The River Oaks
site presents a rare opportunity to exemplify this
mission, demonstrating what’s possible when public
land, public purpose, and community-led design
come together. Riverwalk Landing addressesthe TOC
Policy’sthree core goals:
• Ridership and Transit Use: The project is
structured around a car-changing lifestyle. We
propose to create a transit station/stop for direct
pedestrian connections, secure bike parking, and
on-site mobility amenities, the design facilitates
varied, changing and current transit use.
• Equity and Affordability: We’re delivering 143
affordable homes across a mix of incomes, unit
types, and family sizes. This includes units for
households at 30%, 50%, 60% and 70% of AMI, in
alignment with the City’s Housing Element and
regional equity goals.
• Catalytic, Mixed-Use Community Building:

More than housing, this proposal lays the
groundwork for a vibrant, connected neighborhood.

It includes the development and construction of a
landmark public park, active ground floor uses, and
design strategies that promote safety, inclusion, and
dignity.

The Soledad Gabilan community takes a forwardleaning approach that reflects the “15-minute city” principles embedded in Soledad’s vision: a
neighborhood where homes, transit, recreation,
and daily needs are all accessible within a short walk
or bike ride.
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SITE PLAN & DEVELOPMENT PROGRAM
/ SITE STRATEGY: CONNECTION AT ITS CORE
1 2
3 384
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SITE PLAN & DEVELOPMENT PROGRAM
/ SITE STRATEGY: CONNECTION AT ITS CORE
At Soledad Gabilan, we want to create a walkable, human-scaled neighborhood that strengthens social cohesion and integrates seamlessly with the city’s fabric, while offering safe access to transit and abundant open space.

The concept is a thoughtfully designed residential community that embodies long-term affordability, sustainability, and family-oriented living. Anchored by its connection to the adjacent park, the project fosters a vibrant neighborhood culture through intentional design strategies that promote equity, inclusion, and resilience. .
/ PEDESTRIAN AND TRANSIT CONNECTIONS
The landscape design reflects the natural character of Soledad, with active areas, internal connectors, and buffers that enhance privacy and comfort. Covered outdoor spaces support community and after-school activities, while rolling curbs and plaza connections improve safety and accessibility.
/ DESIGN STRATEGIES
• Family-Oriented Culture: Central green space linked to the adjacent park to encourage play and connection.
• Social Cohesion: Centrally located shared spaces including a community room and outdoor gathering areas.
• Human-Scale Development: Walk-up homes and pedestrian-friendly pathways integrated with the surrounding urban context.
• Neighborhood Compatibility: Context-sensitive massing and material palettes. • Site-Integrated Sustainability: Stormwater strategies, native landscaping, and tree planting to reduce heat island effects.
/ MINIMIZED PARKING, MAXIMIZED ACCESSIBILITY
With just 143 vehicle spaces proposed, one per every units, this is one of the most car- light housing communities in the region. This strategy is both intentional and feasible. Supported by real transit alternatives, transportation stipends and constructed infrastructure, residents will have meaningful options beyond car reliance. Conceptual Rendering of Multimodal Lounge 385
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SITE PLAN & DEVELOPMENT PROGRAM
/ SITE STRATEGY: CONNECTION AT ITS CORE
/ INTUITIVE CIRCULATION, EQUITABLE DESIGN
The buildings themselves are massed to emphasize permeability. Wide, landscaped connections ensure that all users, including children, older adults, and people with disabilities, can move safely through the site. As the community grows, these spatial frameworks will remain essential to resilience, social cohesion, and health.
/ PHASED DEVELOPMENT
Under the California Tax Credit Allocation Committee regulations, rural set-aside applications can include up to 100 Low-Income Units. The Executive Director can allow more units if the rural community is unusually large, close to a city, and there is a strong need for affordable housing in the area. With this in mind, we have laid out the community site plan to anticipate the need to build the community in two phases. While 100 units may seem an arbitrary number, the financing opportunities will greatly impact the viability of one phase or multiple phased construction. We have employed this design strategy many times in both rural and urban areas.

The illustration to the right shows the various components that could act as the phasing plan.

Figure 1: Pink = Phase I Blue = Phase 2 Green = Separate or with Phase 2. 386
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SITE PLAN & DEVELOPMENT PROGRAM
1 Bedroom 2 Bedroom 3 Bedroom TOTAL
30% AMI 5 5 5 15
50% AMI 10 15 15 40
60% AMI 2 15 20 37
70% AMI 4 18 27 49
Manager's Unit 0 1 1 2
TOTAL 21 54 68 143
% Unit Type 15% 38% 48% 100%
Avg. Aff AMI 50% 58% 60% 57.4%
/ PROJECT OVERVIEW: DENSITY WITH DIGNITY
With 143 affordable homes, an adjacent public park, and a rich mix of community-serving uses, Soledad Gabilan exemplifies what’s possible when land, design, and purpose align.
/ BY THE NUMBERS
• Total Units: 141 deed-restricted affordable homes
• Affordability Levels Serving 30%- 70% AMI households (see below) • Unit Mix: See table below
• Residential Buildings: Seven buildings at 3 stories
• Density: 31 units/acre
• Parking: 143 total vehicle spaces (1 per unit)
• Bike Parking: At least 1 secure space per unit
• Commercial/Community Uses: Flexible ground floor space • Public Park: A fully accessible, intergenerational, inclusive space / EQUITY-DRIVEN, RIGHTSIZED DEVELOPMENT
Every aspect of the proposal is scaled to support dignity, comfort, and livability for households who have historically been underserved by rental development. Units are designed with natural light and privacy in mind. Open spaces are purposeful and central. Ground floors are opportunities for connection, services, and economic inclusion. / TAILORED TO POLICY AND PEOPLE
Compliance with Housing Element Goals

1. Affordable Housing Production
• Provides a mix of 1-, 2-, and 3-bedroom units, with a focus on family-oriented housing. • Supports RHNA targets by increasing the supply of affordable units for low- and moderate-income households.

2. Equity and Inclusion
• Incorporates shared community amenities including:
o 2,000 SF Community Room
o 1,000 SF After-School Space
o 58,000 SF of Open Space
• Promotes social cohesion and inclusive design through centrally located gathering spaces and walkable site planning.

3. Sustainability and Resilience
• Integrates native landscaping and stormwater management strategies. • Includes tree planting to reduce heat island effects and enhance environmental resilience. • Leverages site orientation for energy efficiency and passive design.

4. Connectivity and Neighborhood Integration
• Links central green space with adjacent public park to promote pedestrian access and community interaction. • Provides safe access to transit and walk-up homes to reduce vehicular dependency. • Uses context-sensitive massing and materials to ensure compatibility with surrounding neighborhoods.

5. General Plan Consistency
• Aligns with Soledad’s General Plan goals for balanced growth, quality of life, and strategic land use.

Advances the city’s commitment to sustainable development and inclusive community building. 387
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TDM STRATEGY
To reduce parking reliance in real estate developments—especially in affordable or transit-oriented projects—transportation demand management (TDM) strategies can be very effective. Here are some proven transportation demand models and strategies that we will consider:

1. Transit Incentives
• Implementation: Free or discounted transit passes
• Impact: Increases transit ridership and reduces car
ownership.

2. Car Sharing Programs
• Partners: Zipcar, Getaround, or community-based car share • Implementation: Provide dedicated spaces and subsidize memberships
• Impact: Reduces need for personal vehicle ownership

3. Bicycle Infrastructure & Amenities
• Features:
o Secure bike parking
o On-site repair stations
o Bike share programs
• Impact: Encourages cycling as a primary mode of
transportation

4. Mobility Hubs
• What it is: Centralized locations offering multiple transportation options (e.g., transit, bike share, scooters, EV charging) • Impact: Makes car-free living more viable

5. Real-Time Transportation Information
• Tools: Digital displays or apps showing transit schedules, bike availability, etc.
• Impact: Improves convenience and confidence in using non-car modes
Bike Room at Solaire Apartments
388

CULTURAL COMPETENCY
/ HONORING CULTURE, ELEVATING COMMUNITY
Since our founding in 1968, Eden Housing has been committed to building and preserving a home for everyone in need. We have a responsibility to address structural racism in our communities through our work in housing. We value racially and economically diverse communities because they are essential to our collective success. Eden believes that equitable development is cultivated through the following critical components:
• Responsive and inclusive community engagement
• Thoughtful design in response to community input
• Affirmative fair housing marketing and lease up process • Tailored residentservices and programming
• Assessment and improvement of Eden internal policies and practices Our approach starts with the process of determining the physical design and programming of our projects through gaining an understanding of the community and its needs through our community engagement process. We ensure that translation services are available so that everyone in the community can participate and make their voice heard.

We then design our projects using the through awareness gained. We want our projects to make all residents feel at home once constructed, and include features that reflect the broader community, such as art and murals created by local artists. Placemaking is a key component and can be summed up with the commitment to provide a space that can add to the enjoyment of one’s home environment. Imagine sitting outside having a picnic under a tree in an urban setting while watching neighbors play chess or playing frisbee.

Eden markets and leases units using Affirmative Fair Housing marketing practices, ensuring that all affirmative fair housing requirements are met or exceeded. To actively foster inclusive communities, Eden will ensure awareness of the housing opportunity to all racial and ethnic minority groups by working closely with local community groups that serve those populations.

We make sure that those organizations are trained to support potential applicants in applying for housing.

Once a project is occupied, our property management and resident services teams implement programs and operate the project in support of and in response to the needs of the residents.

We have standard services that we offer across all properties, and also tailored to the services to the needs of the residents. We implement regular resident satisfaction surveys to obtain feedback from our residents on areas of opportunity for improvement. We also make changes to our programming to be responsive to issues facing our communities. In Covid, we shifted our program model to include virtual programs and implemented a device lending program where residents can check out a tablet or Chromebook with internet access to participate in virtual programs or use for their own needs.

Lastly, we commit to scrutinizing and improving our practices, policies, and programs. We continue to increase our social awareness and ability to understand, appreciate and interact with people from different cultures and belief systems. Eden hires people who embody and champion the Eden Housing brand and mission. We deliver with integrity, champion our people, build enduring partnerships, and commit for the long haul. //////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 2 / DEVELOPMENT PROPOSAL / SOLEDAD GABILAN / October 2025 EDEN HOUSING & STEINBERG HART Bilingual Community Engagement Event by FORA
389
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55 3 / FINANCIAL PROPOSAL:

PROJECT FINANCING AND

GROUND LEASE TERMS
Mesa Terrace
Eden Housing
46 Unitsin San Jose
100% Affordable Housing
For Families & Transition Aged Youth
390
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PROFORMA & GROUND LEASE TERMS
Eden’s financial proposal includes proven concepts we have employed over various projects in a varied geographic location that has shown repeated success. The assumptions embedded in any projection is a snapshot in time which provides us with the most current information. A development proforma will be updated from time to time including all income and expense projections and may change dramatically by the time finance closing occurs. / SOURCES AND USES
We believe the most advantageous way to finance this community is to employ either a Hybrid financing approach or a separate phased approach. In both scenarios, we propose securing a grant and a loan from the Affordable Housing Sustainable Communities (“AHSC”) program.

With this program comes the forward planning of offsite transportation infrastructure, community facilities such as parks and a larger scope of work for a phased site plan. Generally speaking, the Infill Infrastructure Grant project is quite complimentary for use with the AHSC program.

Tax credits will bring about 40% of the overall project sources to the communities.

Conventional debt from one of our financing institutions of which we have a long standing history will supply approximately 20%- 30% of the overall project sources.

Regardless of what company is chosen to develop this project, they will likely have to leverage tax credits and state funding for this project to achieve financial feasibility. Eden Housing is exceptional as evidenced by the recent State HCD funding awards made under their SuperNOFA program.

Quick headline numbers
Total funding awarded (all applicants): $414,242,922
Overall hit rate (all sponsors) = 30 / 166 = 18%
Eden Housing, Inc.

Awards received: 5
Total $ awarded to Eden projects: $78,100,337
Eden hit rate = 5 / 11 = 45%
The amount of funding Eden Housing was awarded in 2025 was the most statewide that any single sponsor received.
/ GROUND LEASE TERMS
Eden proposes a no cost ground lease structure over the lease term. This Below Market Lease will assist in showing financial support from the City to assist in leveraging outside funding. Should the City wish to require a residual receipts lease payment for consideration, we can collaborate with the project financing team to ensure long term project feasibility.
/ GROUND LEASE SUMMARY
Lease Term: 99 years
Lease Type: Subordinate
Eden Housing has worked with several public agencies across the State of California to help realize their community development and housing goals. We have formed these partnerships through various means, including Disposition and Development Agreements (DDAs), inclusionary housing agreements, property sales and transfers, and also via long-term ground lease agreements. The most recent public ground lease arrangements are with:
• County of Santa Clara: Solaire Apartments, San Jose (2024) • City of San Jose: Mesa Terrace (2023)
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PROJECT FINANCING PLAN
/ CONSTRUCTION SOURCES
Construction Loan: This project anticipates a conventional construction loan in the amount of consistent with the current market for debt. Eden’s strong track record with conventional lenders will allow us to get the most competitive rates and terms for debt financing. This loan will be taken out from LIHTC syndication proceeds and perm loan debt.

Infill Infrastructure Grant and AHSC Loan/Grant: We have assumed $25 million from the IIG program to assist in the capital improvements to the park, infrastructure, streets, roads, etc. that will be needed for this project.

Net Syndication Proceeds: This project is expected to receive net equity pay-ins from the investor limited partner during the construction period, for a total of $3 million.

TOTAL CONSTRUCTION FINANCING: $82.25 million
/ PERMANENT SOURCES
Permanent Loan: This project includes a permanent mortgage of about $20.5 million over a 40- year term, assuming an interest rate consistent with the current market for debt. Eden’s strong track record with conventional lenders will allow us to get the most competitive rates and terms for debt financing. The perm loan will be serviced from NOI based on TCAC rents.

Affordable Housing and Sustainable Communities: The nature of this project makes it an ideal candidate for the Affordable Housing and Sustainable Communities (AHSC) program. We have assumed this program will qualify for $20 million in AHSC funds to enhance connectivity and decrease greenhouse gas emissions in the rural area. Eden has worked successfully with local partnersto leverage AHSC awards for transit linkagesthrough sidewalk improvements and bicycling infrastructure.

Infill Infrastructure Grant and AHSC Loan/Grant: We have assumed $5 million from the IIG program to assist in the capital improvements to the park, infrastructure, streets, roads, etc. that will be needed for this project.

Low Income Housing Tax Credit Equity: This project is structured as a bond-financed 4% tax credit execution that includes both Federal and State credits for $25 million, a structure Eden has used many times. A key aspect of maximizing tax credit equity will be to structure the project to maximize tax credit eligible basis. Eden is well regarded by both direct investors and tax credit syndicators and routinely obtains highly competitive pricing on each project.

Deferred Developer Fees: Consistent with the regulations for the 4% tax credit program, this project assumes a net developer fee of $9 million non-priority and $1 million in priority developer fee paid from cash flow.

Local funding: To the greatest extent possible, we will minimize the amount of hard cash funding required from local sources. However, in the event we have a project shortfall, we will evaluate the need for fee impact waivers (structured as a loan or grant) and other local funding impacts that could leverage outside sources of funding.

TOTAL PERMANENT FINANCING: $82.25 million
/ EDEN/GCS CAPABILITY OF PROVIDING SECURITY

ENHANCEMENTS
Eden provides financial security for all of our projects and financing partners through risk management, flexible financing plans,strong relationships and time-tested, data-driven decision making. We have excellent working relationships with our General Contractors to identify potential risks, including holding weekly (or more) Owner-Architect-Contractor (OAC) meetings during the construction period.
/ EVIDENCE OF CAPABILITY TO PROVIDE PERFORMANCE

SECURITY FOR THE COMPLETION OF ALL GROUND LEASE

IMPROVEMENTS TO ACHIEVE STABILIZATION
There is no secret formula to creating affordable housing; any peer of ours will also raise as much secondary financing as possible and leverage tax credits. However, Eden can bring other factors that stretch invested dollars. By having a total team engagement from concept, we challenge each other to create efficiently and make sure we are using public funds and land resources responsibly. We will use our collective experience to get the best price for materials and labor, while promoting local, disadvantaged and minority owned businesses. 392
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58 4 / DEMONSTRATION

OF FINANCIAL

CAPACITY
Corsair Flats
Eden Housing
60 Unitsin Alameda
100% Affordable Housing
For Seniors, Formerly Homeless, and Veterans
393
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DEMONSTRATION OF FINANCIAL CAPACITY
Eden Housing was the first developer in the State of California to receive tax credits and has been continually successful acquiring 9% and 4% tax credit allocations ever since. Eden has extensive experience with institutional and private financing that includes conventional construction and permanent loans, tax-exempt bonds, and low-income housing tax credits – both the competitive 4% and 9%, and hybrid 4%/9% programs.

It’s also worth noting Eden’sstrong track record in recent yearssecuring loans and grants from the California Department of Housing and Community Development geared toward urban infill projects. Across the highly competitive Infill Infrastructure Grant (IIG), Transit-Oriented Development (TOD) and Affordable Housing and Sustainable Communities (AHSC) programs, Eden has raised over $140 million in this sampling of projects:

AHSC IIG YEAR BUILT
Miraflores
Richmond CA
$4,000,000 $2,702,225 2018
Hana Gardens
El Cerrito, CA
$5,271,696 $1,422,227 2018
Light Tree Two
East Palo Alto, CA
$13,651,295 2022
Liberation Park
Oakland CA
$35,000,000 $7,767,171 Pre-Development
Mulberry Gardens
Riverside CA
$14,000,000 $11,696,488 In Construction:senior
Pre-Dev: Family
Downtown Library
Mixed Use
Santa Cruz CA
$22,500,000 In Construction
Pacific Ave Corridor
(PAC) Station North
Santa Cruz, CA
$20,000,000 $5,800,000 In Construction
TOTAL $114,422,991 $29,388,111 $143,811,102
Eden has had a strong operating history, meeting or exceeding its budget for the past 10 years.

Eden ended last year with the strongest cash position we have had since our inception over 57 years ago. Eden anticipates maintaining a strong position for the next five years, based on our receivables and development pipeline. We are diversifying and enhancing our revenue base and expect that we will be able to maintain a strong financial position into the future.

Eden has access to several sources of predevelopment funding including our own capital and several lines of credit from our community banking partners. These funds are available to all projects in our pipeline and are subject to board approval based on project feasibility,stage, and timeline to closing.
/ 5-YEAR TRACK RECORD (2019-2024)
Eden’s 5-year track record demonstratesits ability to source project-level leverage from private and public sources. From 2019-2024, Eden completed construction (received TCO) on 14 projects (nearly 1,000 units) throughout the State.
• Total Project-Level Leverage (Total Development Costs), $704 million • Private Sources, $640,000,000, 91%
• Public Sources, $64,000000, 9%
An important indicator not included in this five-year period is committed financing for another 19 projects (1700 units) that had not yet received their TCO but were under construction at the time, demonstrating Eden’s capacity to manage a strong project pipeline.

Representative Projects w/ Similar Financing Requirements for 5 Yr Period (2019-2024) See next page for spreadsheet with lender references
/ FINANCING PLAN FOR THIS PROJECT
Eden has extensive experience and a proven track record of obtaining institutional and private financing that includes conventional construction and permanent loans, tax-exempt bonds, and low-income tax credits – both 4% and 9% programs – that are used to finance affordable housing communities. This project is currently underwritten as a 4% execution with soft debt from State of CA AHSC and IIG programs.

We have modeled a workforce housing development with units ranging from 30%- 70% AMI, with an average 57% average affordable AMI, to make the project competitive for these funding sources and others should they not be available.

Should we need to, it can easily be adapted to a hybrid 4%/9% LIHTC model. Eden has experience executing a hybrid structure within a single project. The flexibility of this project will allow it to qualify and adapt to many types of funding opportunities, especially those for large families and transit oriented.
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DEMONSTRATION OF FINANCIAL CAPACITY
/ REPRESENTATIVE PROJECTS W/ SIMILAR FINANCING REQUIREMENTS FOR 5 YR PERIOD (2019-2024) Property, City Year
Complete
#
Units
Total
Development Cost
Construction
Lender
Perm
Lender
LIHTC Structure &
Investor
State HCD
Sources County Sources Operating Subsidy
Local
Sources Other Sources Population
Ground
Lessor
Tabasa Gardens,
Watsonville
2024 53 $ 44,200,000 US Bank US Bank
9% Disaster Credits,
US Bank
Serna,
NPLH
County of Santa Cruz
Housing Authority,
Health Services
Agency Section 8
City of
Watsonville
Central Coast Community
Energy, CA Energy Smart
Homes, FHLB
25-50% AMI for
large family,
farmworker, PSH
Solaire, San Jose 2024 130 $ 82,200,000 SVB CCRC 4%, NEF IIG Santa Clara County
Measure A, NPLH Section 8 Housing Trust Silicon Valley
30-60% AMI
formerly homeless
County of
Santa Clara
Blue Oak Landing,
Vallejo 2023 75 $ 51,900,000 SVB N/A 4%, CREA NPLH CAP Solano Section 8 City of
Vallejo FHLB PSH
Light Tree Two, East
Palo Alto 2023 128 $ 111,000,000 US Bank
JP Morgan
Chase 9%, US Bank AHSC
San Mateo County
Housing Authority Section 8
LISC, Golden Gate Regional
Center
IDD, TAY, formerly
homeless
Residences at Vivalon
Health and Aging
Campus, San Rafael 2023 67 $ 48,200,000
JP Morgan
Chase (FRB)
JP Morgan
Chase (FRB)
9%, Raymond
James Marin County
City of San
Rafael
Housing Trust Silicon Valley,
Marin Community Foundation,
Tamalpais Pacific Foundation ,
Vivalon
30-60% AMI,
Senior, PSH
Walnut Grove, Los
Gatos 2023 50 $ 48,800,000 N/A
East West
Bank
9%, Merritt
Community Capital
Corporation N/A N/A N/A N/A N/A 30-50% AMI, Senior
The Randall,
Healdsburg 2023 41 $ 25,400,000 Wells Fargo CCRC 9%, Wells Fargo Sonoma County CDC,
Housing Authority
City of
Healdsburg FHLB
30-50% AMI, Large
Family
Mesa Terrace, San
Jose
2023 46 $ 31,300,000 Wells Fargo CCRC 9%, Wells Fargo N/A Couty of Santa Clara
NPLH, Santa Clara
County Housing
Authority Section 8
City of San
Jose
TAY, Formerly
Homeless, Family,
Seniors
City of San
Jose
The Starling, Alameda
2022 70 $ 53,600,000 Wells Fargo CCRC 4%, Wells Fargo NPLH Alameda County A1 Section 8 FHLB 20-60% AMI, Large
Family, formerly
homeless
Granite Ridge,
Fremont 2022 73 $ 46,800,000 Capital One CCRC
9%, Hudson
Housing Capital Alameda County A1 N/A
City of
Fremont N/A
20-60% AMI, Large
Family, formerly
homeless
Loro Landing, San
Leandro 2022 62 $ 43,700,000
Bank of
America CCRC
9%, Bank of
America VHHP Alameda County A1 VASH N/A FHLB, Home Dept 15-60% AMI,
Veterans, formerly
homeless, PSH
Canyon Flats and
Reilly Station,
Fremont 2021 132 $ 82,200,000 Wells Fargo CCRC Hybrid, Wells Fargo N/A N/A N/A N/A N/A 30-60% AMI Large
Family
Corsair Flats, Alameda
2020 60 $ 34,500,000 US Bank US Bank 9%, US Bank VHHP Alameda County A1 VASH N/A FHLB 15-60% AMI,
senior, formerly
homeless, veterans
395

PROJECT SCHEDULING
Eden Housing has been building affordable housing and community improvements since 1968.

With that comes experience with innovative strategies to accelerate the delivery of units. Eden has a long bench of engineers, contractors, financial institutions, and banks to select from to assemble a high quality, cost effective, appropriate team of dedicated professionals to deliver this project in a timely fashion.

Strategies that may be used for this development are:
• Continuing our strong relationship with the City of Soledad to expedite application processing timelines and ensure the development application isreviewed in a timely manner. • Early engagement of a general contractor and key trades during the design process to identify conflicts and efficiencies before construction starts. • Simultaneous public engagement with design phase to streamline public approvals and stakeholder agreement, as needed.
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Soledad City CouncilFebruary 4, 2026

Soledad City Council
February 4, 2026