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City of San Leandro <br />Meeting Date: July 16, 2012 <br />Staff Report <br />File Number: 12 -322 Agenda Section: ACTION ITEMS <br />Agenda Number: 10.A. <br />TO: City Council <br />FROM: Chris Zapata <br />City Manager <br />BY: Luke Sims <br />Community Development Director <br />FINANCE REVIEW: Not Applicable <br />TITLE: Staff Report for a City of San Leandro HOME Investment Partnerships <br />Program (HOME) Funds Loan to Alameda Housing Associates, L.P. to Assist <br />in the Construction of an Affordable Rental Housing Project (Cornerstone at <br />San Leandro Crossings) Located at 1400 San Leandro Boulevard <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends that the City Council adopt the resolution 1) approving the HOME Loan <br />Agreement for $650,000, Regulatory Agreement, Promissory Note, and Deed of Trust to <br />assist with the construction of the Cornerstone at San Leandro Crossings; and 2) authorizing <br />the City Manager to execute and deliver such other instruments and to take such other <br />actions as necessary to carry out the intent of this resolution. <br />BACKGROUND <br />In April 2009, the City Council approved a $9.1 million Redevelopment Agency Housing <br />Set -Aside loan to BRIDGE Housing Corporation (BRIDGE) to assist in the construction of The <br />Alameda, a 100 -unit affordable rental housing project located at 1333 Martinez Street on the <br />west side of the Downtown BART station. The Alameda was the affordable housing <br />component of the San Leandro Crossings Master Plan (Plan), a transit oriented development <br />near the San Leandro BART Station in Downtown San Leandro. Due to the associated <br />delays relating to the State's elimination of redevelopment agencies in early 2012 and the CA <br />State Department of Housing and Community Development (HCD) Transit Oriented <br />Development Housing Program (TOD) grants, however, the City revised its Plan in April 2012. <br />The revised Plan moves the affordable housing component, renamed Cornerstone at San <br />Leandro Crossings (Cornerstone), to 1400 San Leandro Boulevard and provides for the <br />construction of 200 affordable rental units rather than the 100 affordable units under the <br />former Alameda. <br />BRIDGE is requesting additional City funds for the Cornerstone's 200 -unit design which is <br />larger than the original 100 -unit design for the Alameda. BRIDGE currently has a $650,000 <br />financing gap in its construction budget (see attached financial pro forma). The total <br />estimated development cost for the Cornerstone is $70 million. <br />City of San Leandro Page 1 Printed on 711012012 <br />