Lazuli Landing
Item 4.1
2 October 28, 2025 – Lazuli Landing
Presentation Overview
• Section 1: Background and Updates
• Section 2: Amendments to Disposition,
Development, and Loan Agreement (DDLA)
• Section 3: TEFRA Bond Hearing
• Section 4: Final Parcel Map
Background and Updates
Section 1
4 Project Site
October 28, 2025 – Lazuli Landing
5 Lazuli Landing Project
• 80 units of affordable housing
• 1 manager’s unit
• Residential leasing office for MidPen
• Approximately 6,300 square feet of office space to be leased by the City
October 28, 2025– Lazuli Landing
6 October 28, 2025 – Lazuli Landing
Strategic Plan Consistency:
Goal C.
Economic, Community Development, and Public Safety
Strategy 5.
Promote housing development for all income levels in the community by implementing the Housing Element, updating the zoning ordinance to include objective standards for new multi-family residential development to streamline the review of applications for housing developments, and other
measures.
7 Lazuli Landing Timeline
Milestone City Council Approval
• Redevelopment Agency acquired parcels 2002-2003
• RFP Process to select MidPen as Master Developer May 2018 • General Plan Amendment to Corridor Mixed Use Commercial 2019 (Part of 2040 General Plan process)
• Zoning Text and Map Amendments
• CEQA - Mitigated Negative Declaration
February 2020
• Site Development Review, Use, Permit, Tentative Parcel Map • Disposition, Development and Loan Agreement (DDLA) and other regulatory agreements
• Authorization to apply for Infill Infrastructure Grant July 28, 2020
• Authorization to Execute Implementation Agreement for AHSC Grant
May 25, 2021
October 28, 2025 – Lazuli Landing
8 Changes in Financing Plan Since 2021
October 28, 2025– Lazuli Landing
Source 2021 2025
Union City Housing Funds Loan $5,034,924 $4,355,613
2025 Housing Successor Agency
Grant (RDA Bond Funds)
0 $1,135,662
Housing Trust Silicon Valley $5,035,266 $2,887,000
Infill Infrastructure Grant $3,793,115 Not awarded
AHSC Grant $16,400,000 $13,500,000
Federal Home Loan Bank of SF $800,000 $2,000,000
MP Lazuli Landing Associates $34,499,063 $41,055,423
MidPen Housing Corp. $235,258 $9,703,227
State Dept of Developmental
Services
$1,500,000
9 AHSC Grant
• AHSC Grant awarded on February 26, 2022
• AHSC Grant provides:
• $13.5 million for housing project
• $200,000 to City for pedestrian improvements in Decoto Neighborhood
• $800,000 to City for buffered bicycle lanes on Decoto Road between 11th Street and Mission Boulevard
• $6,623,592 to BART for BART improvements
October 28, 2025– Lazuli Landing
10 Changes in Project Design
• Removal of exterior stairs
• Building height reduced by 2’2” in Floor 1
• Reduced parking from 121 to 105 – elimination of second level of parking (City is prohibited from enforcing parking requirements within one-half mile of a major transit stop)
• Parking garage entry – eliminated on E Street
• Removal of Juliette balconies
• Removal of dropped ceilings in first floor common spaces and commercial space
• Removed “Laundry/Learning Center” from 2nd floor and increased resident amenities on the 1st floor
• Saved $1.6 M (2024)
October 28, 2025– Lazuli Landing
11 Mission Boulevard Rendering
October 28, 2025– Lazuli Landing
Amendments to
Disposition, Development,
and Loan Agreement
Section 2
13 October 28, 2025– Lazuli Landing
Amendments to the DDLA
• Adjustment to City Fund sources for project
• Revised Schedule of Performance - Corresponds to tax credit funding requirements
• Revised Scope of Development – Parking update and Residential Amenities update
• Revised Financing Plan – Corresponds to previous unsuccessful grant applications being replaced by new funding sources
• Revised Promissory Note – Update for revised City Loan amounts • Revised Regulatory Agreement – Update to affordability mix, unit restrictions, and Live/Work preference mix
14 October 28, 2025– Lazuli Landing
Sources 2020 Plan 2025 Plan
City Housing Funds Loan $5,034,924
Sources:
• $2,434,924 Housing in-lieu
fees
• $1.1 M – 2010 RDA Housing
Bond Proceeds
• $1.5 M – RDA Housing Tax
Increment Funds
$4,355,613
Sources:
• $1,850,399 Housing in-lieu
fees
• $2,505,214 – RDA Housing Tax
Increment Funds
2025 Housing Successor Agency
Grant
None $1,135,662 - 2010 RDA Housing
Bond Proceeds
City grant to construct offices $1.8 M from CIP developer fees (including the capital facilities
fees paid by MidPen)
$1.8 M from CIP developer fees
(including the capital facilities
fees paid by MidPen)
Total $6,834,924 $7,291,275
(Net addition of $456,351 to
2020 Financing Plan)
15 October 28, 2025– Lazuli Landing
Loan Term (no changes):
• 55-year term, 0 percent interest
• Repayment “residual receipts”
• Public agencies receive 75 percent residual receipts
• City to receive 15 percent of 75 percent residual
receipts
• Other agencies involved with Project:
• State HCD, Housing Trust Silicon Valley, Federal
Home Loan Bank of San Francisco, State
Department of Developmental Services, Alameda
County HCD
16 October 28, 2025– Lazuli Landing
Household Income Application to Units
• Units are allocated by Area Median Income (AMI)
percentage based on the projects Affordability Mix
• Household rent is based off of an applicant’s annual gross income
• For example, Maximum income limit for an extremely- low 20% AMI unit for a 1 BR Unit is $25,580
• Maximum income limit for a very-low 50% AMI unit
for a 2 BR unit is $63,950
• Maximum income limit for a low income 60% AMI
unit for a 2 BR $76,740
17 October 28, 2025– Lazuli Landing
Application Process
• MidPen completes community outreach process
approximately 6 months prior to construction
• Marketing will include ads in publications, flyers, and outreach to local service organizations
• Applications are submitted to MidPen within a specific timeframe
• Applications will be lotterized and a waitlist created • Applicants will be contacted by MidPen lease up team in lottery rank order to confirm income and eligibility
• Eligible applicants will be offered a unit
• Applications not selected will be contacted and placed on waitlist
18 October 28, 2025– Lazuli Landing
Affordability Restrictions
Extremely
Low-Income
Units (20%
of AMI)
Extremely
Low-Income
Units (30% of
AMI)
Very LowIncome Units
(40% of AMI)
Very LowIncome
Units (50%
of AMI)
LowIncome
Units
(60% of
AMI)
Total Units
1-Bedroom 14 2 5 21
2-Bedroom 3 1 9 19 4 36
3-Bedroom 3 2 11 7 23
Unrestricted
Manager’s
Unit
1 Total Units 17 4 13 35 11 81
19 October 28, 2025– Lazuli Landing
Developer Finance Plan:
$91.1 million Permanent Financing
• $ 2.8 million - Housing Trust Silicon Valley (HTSV) Apple Construction Loan Permanent Financing Loan
• $ 13.5 million - State Housing and Community Development (HCD) Department – Affordable Housing and Sustainable Communities (AHSC) Loan
• $ 4.5 million - Alameda County A-1 Bond funds - Regional • $ 8.8 million - Alameda County A-1 Bond funds - Union City share • $ 7.291 million - City Contribution (Affordable Housing Fund & RDA Housing Bond Funds)
20 October 28, 2025– Lazuli Landing
Developer Plan to Finance Project:
$91.1 million Permanent Financing (cont.)
• $ 1.5 million - California Department of Developmental Services loan • $ 2.0 million - Federal Home Loan Bank San Francisco Affordable Housing Program (FHLBSF AHP) loan
• $ 720,000 - Deferred Developer Fee (MidPen)
• $ 41 million LP Equity generated 4 Percent Tax Credits • $ 8.9 million GP Tax Credit – available with LP Equity
21 October 28, 2025– Lazuli Landing
Housing Preference:
• City Council expressed preference to prioritize Union City residents for affordable housing
• Federal Fair Housing Law and Alameda County A-1
Implementation policies limit units for preference
• Alameda County A-1 Bond funds requires Displacement Study to justify local preference
• City submitted Displacement Study in July 2019
• Alameda County responded in June 2020 they supported a Live/Work preference for people living and/or working in Union City
22 October 28, 2025– Lazuli Landing
City and County Live/Work Preferences
Extremely
LowIncome
Units (20%
AMI)* I/DD
set-aside
Extremely
Low-Income
Units (30%
AMI)
Very LowIncome Units
(40% AMI)
Very LowIncome Units
(50% AMI)
Low-income
Units (60%
AMI)
Total Units
City
Preference
4 4 13 35 11 67
County
Preference
13 13
Unrestricted
Manager
Unit
1 Total Units 17 4 13 35 11 81
TEFRA
Section 3
24 October 28, 2025 – Lazuli Landing
TEFRA Hearing
• Public hearing required pursuant to Tax Equity and Fiscal Responsibility Act (TEFRA)
• MidPen has asked California Municipal Finance Authority (CMFA) to be the issuer of tax-exempt financing
• Amount not to exceed $48 Million of tax-exempt revenue bonds • CMFA is a joint powers authority
• Debt will be the sole responsibility of the Borrower
• City will bear no costs or obligations
Final Parcel Map
Section 4
26 October 28, 2025 – Lazuli Landing
Final Parcel Map
• Combines several parcels into one parcel
• Is in substantial compliance with Tentative Parcel Map approved in 2019
• Improvements in the public right-of-way include:
• undergrounding of overhead power poles on D St. and E St. • wheelchair ramps
• frontage improvements
• landscaping
• lighting
• facilities to treat stormwater
• new fire hydrant water line
27 October 28, 2025 -- Lazuli Landing
28 October 28, 2025 – Lazuli Landing
Recommendation
1. Open TEFRA Public Hearing, receive any comments, close Public Hearing.
2. Adopt a Resolution Authorizing the City Manager to Execute of the First Amendment to the Disposition, Development and Loan Agreement between the City and MidPen Housing Corporation and adopting findings in Connection with Such Amendment
3. Adopt a Resolution Authorizing a Budget Allocation in Accordance with the Disposition, Development and Loan Agreement between the City and MidPen Housing Corporation for the Lazuli Landing Project
4. Adopt a Resolution Approving a Plan of Finance of the California Municipal Finance Authority to Issue and Reissue Revenue Bonds for a Qualified Residential Rental Project for the Benefit of MP Lazuli Landing Associates, L.P., and Certain Other Matters Relating Thereto
5. Adopt a Resolution Approving Final Parcel Map 11004 for the Lazuli Landing Development by the MidPen Housing Corporation