Conditional Funding for Three
Affordable Housing Developments
Ryan Dyson, Housing Specialist
August 13, 2024
2City of Sunnyvale – 2024 HMF NOFA – City Council – August 2024 • NOFA released May 2, 2024
• $20M in Housing Mitigation Funds (HMF)
Housing Mitigation Fees from nonresidential projects
Below Market Rate In-Lieu Fees
FY 24/25 budget allocates $32.5M
• Three applications received by June 6 deadline
$34M in total requests
• NOFA Committee reviewed and scored each project based on score sheet Background
2024 Notice of Funding Availability (NOFA)
3City of Sunnyvale – 2024 HMF NOFA – City Council – August 2024 • Developer: MidPen Housing
• Units: 172 total (170 affordable)
~34 units Permanent Supportive
Housing (PSH)
• NOFA Request: $14,033,000
$12.5 million for acquisition
~$1.5 million for predev
• Prior City funding: $500k predev
2022 NOFA
1171 Sonora Court
Overview
4City of Sunnyvale – 2024 HMF NOFA – City Council – August 2024 1171 Sonora Court
• Average Score: 84.0
• Organizational capacity and experience
• Deep affordability (40% of units at Extremely
Low Income [ELI])
~34 PSH units
• Ready to use acquisition funds
Currently in High Resource area
High Resource Category is “locked in” if
DDA/acquisition takes place by end of 2024
Increases competitiveness for TCAC and other
funding
Scoring
5City of Sunnyvale – 2024 HMF NOFA – City Council – August 2024 • Developer: MidPen Housing
• Units: 126 total (125 affordable)
32 units for unhoused residents
• NOFA Request: $5,967,000
$1.5 million for predev
~$4.5 million for construction
• Prior City funding: $7.3M acquisition
295 S Mathilda Ave
Overview
6City of Sunnyvale – 2024 HMF NOFA – City Council – August 2024 295 S Mathilda Ave
Scoring
• Average Score: 79.0
• Organizational capacity and experience
• Deep affordability (30% of units at ELI)
32 units for unhoused residents
• Highest Resource Area (competitive for State tax credits) • Ready to use predevelopment funds
Construction funds may not meet NOFA timeline requirement 7City of Sunnyvale – 2024 HMF NOFA – City Council – August 2024 • Developer: The Pacific Companies
(TPC) and Miramar Capital
First project in Sunnyvale
Experience in Santa Clara County
• Units: 308 total (305 affordable)
• NOFA Request: $14,000,000
(Construction)
• Prior City funding: None
Overview
352 E Java Dr
8City of Sunnyvale – 2024 HMF NOFA – City Council – August 2024 352 E Java Dr
Scoring
• Average Score: 78.7
• Organizational capacity and experience
• Strong development budget
Non-competitive funding sources
Lower City funding per unit
• Intends to close on financing Summer 2026
• Lower percentage of units at deep affordability
No preference for unhoused residents
9City of Sunnyvale – 2024 HMF NOFA – City Council – August 2024 Request Summary
Project Name Units Score Rank Prior City
Funding 2024 NOFA Request Total City
Funding/Unit
1171 Sonora
(MidPen) 172 84.0 1 $500,000 $14,033,000 $84,494
295 S Mathilda
(MidPen) 126 79.0 2 $7,325,000 $5,967,000 $105,492
352 E Java
(TPC/Miramar) 308 78.7 3 - $14,000,000 $45,455
Total $34,000,000
10City of Sunnyvale – 2024 HMF NOFA – City Council – August 2024 Staff Recommendation (Alternative 1)
Project Name Units Prior City
Funding 2024 NOFA Request Recommendation
(Alternative 1)
1171 Sonora (MidPen) 172
Acquisition - $12,500,000 $12,500,000
Predevelopment $500,000 $1,533,000 $1,533,000
1171 Sonora Total $500,000 $14,033,000 $14,033,000
295 S Mathilda (MidPen) 126
Acquisition $ 7,325,000 - -
Predevelopment - $1,500,000 $1,500,000
Construction - $4,467,000 -
295 S Mathilda Total $ 7,325,000 $5,967,000 $1,500,000
352 E Java (TPC/Miramar) 308
Construction - $14,000,000 $14,000,000
352 E Java Total - $14,000,000 $14,000,000
Total $34,000,000 $29,533,000
11City of Sunnyvale – 2024 HMF NOFA – City Council – August 2024 Justification
Staff Recommendation (Alternative 1)
• 1171 Sonora acquisition locks in High Resource Area
Continues predevelopment activities
• 295 S Mathilda continues predevelopment activities
Recommend to apply for construction funds next NOFA
• 352 E Java construction financing gap filled
• Addl HMF remains for unanticipated projects/next NOFA Housing and Human Services Commission Action
• Unanimously recommended Alternative 1
12City of Sunnyvale – 2024 HMF NOFA – City Council – August 2024 Staff Recommendation
Recommend:
• City Council award conditional funding commitments
for $29,533,000 in Housing Mitigation Funds and Below
Market Rate In-lieu Funds for the Acquisition, Pre-
development, and/or Development of the projects, as
presented in Attachment 3 to the report.
Alternative 1