Rotary Gardens Senior Affordable Housing
Funding Appropriation and Reduction of Impact Fee Request January 14, 2026
Government Code Section 54957.5
SB 343 Item #3 01/14/2026 REG CC
Rotary Gardens Affordable Housing
2 500 Linden Ave.
Project Site
(Phase 1 - Senior)
522 Linden Ave.
(Phase 2 - Family)
500 Linden Avenue Phase 1 - Senior
3 522 Linden Avenue Phase 2 - Family
4 The second phase (family building) is not included in the current funding request. 500 Linden – Phase 1 – Senior
6 stories – approx. 75 feet tall
80 senior units
52 parking spaces
522 Linden – Phase 2 – Family
6 stories – approx. 75 feet tall
64 family units
61 parking spaces
Rotary Gardens Affordable Housing
5 • Collaborative project between SSF Rotary Club and Beacon Development • Same development team for Rotary Terrace (310 Miller) and Rotary Plaza (433 Alida) • Both buildings were approved ministerially on July 2, 2025 • State law AB 2011 allowed streamlined approval
Current Housing Funds
Committed funds:
• December 13, 2023, predevelopment funding of $556,789 • State Permanent Local Housing Allocation (PLHA)
• Loan agreement approved by Council and funds encumbered • June 25, 2025, commitment of $2.3 Million
• City Commercial Linkage Fees (Fund 823)
• Conditionally approved by Council
• Loan would be approved and funds encumbered once building permit submitted, County funds secured, and more Commercial Linkage Fees received SSF Funding Support – 500 Linden Ave.
7 • The City will receive a minimum of $4.5 million in December 2026 from development agreement commitments
Unencumbered Affordable Housing Funds
8 Fund Balance
Housing Trust Fund (Fund 205) $1,500,000
Low/Mod-Income Housing Asset Fund (Fund 241) $1,000,000 Commercial Linkage Fee Fund (Fund 823) $15,300,000
Total Affordable Housing Funds $17,000,000
Funding Request
Targeted Sources for $80 million Total Phase 1 Project Cost:
• Tax-exempt bonds, 4% tax credit equity, City of SSF, County of San Mateo (AHF 12.5 & 13.0), seller note, general partner equity
City commitment:
• Existing commitment of $2.8 million (PLHA and Fund 823) Rotary/Beacon commitment:
• Purchase of land, sponsor loan from Rotary, deferral of developer fees, etc. • Approximately $17 million
San Mateo County commitment:
• Awarded $16.8 million, conditioned on an increase of funds from the City and tax credit award • Remaining gap of approximately $6.7 million
Funding Gap for 500 Linden Ave.
10 $6.7 million request to the City:
• $5.5 million increase from Fund 823
• Increase the Fund 823 contribution from $2.3 million to $7.8 million • $1.2 million in impact fee waivers
• Total cost of fee waivers for the Phase 1 – Senior building is approximately $2.4 million
Funding Gap for 500 Linden Ave.
11 • Specific to 500 Linden Senior Housing Project, City proposing:
• 50% reduction for Library, Parks and Rec, Public Safety, and Transportation
• 100% reduction of Child Care impact fee
• No reduction of Sanitary Sewer Capacity impact fees
12 Recommended Approach to Impact Fee Waiver
• Reserve 51% of units for the City’s live/work preference • Negotiated amount based on project funding sources
• Commercial spaces leased to the City for $1/year
• 500 Linden – 1,300 sq. ft.
• 522 Linden – 560 sq. ft.
• No future requests to reduce parking
• City's funding will be drawn down last, with any unspent funds released at the end of construction
City Requests
13 • Senior affordable housing is needed
• Age 55+ is an increasing segment of the homeless population • Generally, evictions for all renters remain high
• Seniors on fixed incomes are at increased risk
• County award contingent on further local commitment
• Likely a one- to two-year delay of Rotary Gardens without City funds • Next round of tax credits has a deadline of February 3, 2026 • Rotary and Beacon invested over $17 million to 500 Linden • Current timeline delivers 500 Linden construction in October 2026 • Gets us closer to family housing at 522 Linden (Phase 2) 14 Factors for Consideration
• Action for Council consideration (500 Linden):
• $7.8 million appropriation (Budget Amendment 26.057; Fund 823) • $1.2 million in impact fee waivers
• Loan agreement will come back to Council for final approval • Grand Total Phase 1 (500 Linden - Senior Housing)
• $9,652,134 total value of City contributions toward Phase 1 • $8,424,198 from PLHA and Commercial Linkage Fund 823
• $1,227,935 value of impact fee reduction
• Grand Total Phase 2 (522 Linden - Family Housing)
• $1,076,383 from Fund 241
City Funding for Rotary Gardens
15 Rotary Gardens Senior Affordable Housing
City of South San Francisco
THANK YOU