September 5, 2024
Peggy Lichthart
Development Director, Northern CA
Beacon Development Group
1900 Huntington Drive
Duarte, CA 91010
Bruce Wright
Rotary Plaza, Inc.
433 Alida Way
South San Francisco, CA 94080
Re: Letter of Intent to Commit Funding for the Rotary Gardens Senior Housing Project Dear Ms. Lichthart and Mr. Wright:
This Letter of Intent is provided to the Rotary Club and Beacon Development Group (RotaryBeacon) as evidence of the City of South San Francisco's commitment to provide additional funding for the development of the planned senior affordable rental housing project at 500 Linden Avenue should the City be awarded State of California Local Housing Trust Fund (LHTF) Program funds. Rotary-Beacon is currently seeking entitlements for a two-site development, an 80-unit senior affordable housing project at 500 Linden Avenue and a 64-unit affordable family housing project at 522 Linden Avenue. All of the units will be affordable to households earning 60% or less of the area median income, and 30% of the units will be affordable to households earning 30% or less of the area median income.
In support of these twin affordable housing projects, the City has approved two loans to the RotaryBeacon development group: 1) a loan of Permanent Local Housing Allocation (PLHA) funds for the senior project at 500 Linden in the amount of $556,789 and 2) a loan of Low/Mod-Income Housing Asset Funds for the family project at 522 Linden in the amount of $1,076,383. As provided in the 2024 LHTF NOFA and LHTF Guidelines, LHTF funds may be used to match a local jurisdiction’s PLHA funds, but not Low/Mod-Income Housing Asset Funds. At this point, the City wishes to grant Rotary-Beacon additional funding and is applying for a State LHTF award to match its initial $556,789 commitment (of PLHA funds) to the senior affordable housing project at 500 Linden.
CITY COUNCIL 2024
JAMES COLEMAN, MAYOR (DIST. 4)
EDDIE FLORES, VICE MAYOR (DIST. 5)
MARK ADDIEGO, MEMBER (DIST. 1)
FLOR NICOLAS, MEMBER (DIST. 3)
MARK NAGALES, MEMBER (DIST. 2)
SHARON RANALS, CITY MANAGER
Should the City be awarded LHTF funds, the City commits to granting at least $556,789 of these funds to Rotary-Beacon in support of the development of the 500 Linden Avenue project, and in compliance with all LHTF Guidelines and 2024 NOFA requirements.
Sincerely,
Sharon K. Ranals
City Manager, South San Francisco