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File Number: 17-727 <br />BACKGROUND <br />Since early 2017, City of San Leandro staff have been in discussions with Eden Housing to assist <br />in the financing for the construction of the proposed Parrott Street Apartments. This project is in <br />alignment with and advances the goals in the City’s 2007 Downtown San Leandro <br />Transit-Oriented Development Strategy (Downtown TOD Plan) in addition to the recently updated <br />2035 General Plan. <br />Eden Housing currently has an option to purchase the project site from the owner and is in the <br />process of obtaining the necessary financing for this affordable rental housing project, which has <br />a total estimated development cost of over $33 million (see Attachment 1 for project pro forma). <br />Eden is in need of $5 million in gap financing from the City. Funds held by the City of San <br />Leandro as the Successor to the former Redevelopment Agency from repayments of past <br />Redevelopment Housing Set-Aside loans cannot cover the entire $5 million gap. City staff <br />recommends that its $5 million contribution be comprised of: $4 million of the City’s allocation of <br />Alameda County Measure A-1 Rental Housing Development Fund monies and $1 million from the <br />City’s Housing Successor Agency revenue. <br />Voters approved the Alameda County A-1 Housing Bond in November 2016. The County <br />allocated a portion of the bond monies to each local jurisdiction in the County. The City was <br />allocated $11.9 million in A-1 Housing Bond proceeds. In March 2017, the City used a portion of <br />these funds to award $1.7 million to BRIDGE Housing to fill an emergency gap in funding for the <br />San Leandro Senior Apartments project (Marea Alta Phase 2). With the award to Eden for the <br />Parrott Street Apartments of $4 million and County bond issuance fees of approximately $1.2 <br />million, the City’s remaining A-1 allocation balance would be approximately $5 million. Cities <br />need to commit their shares of A-1 funds within the next four years. <br />In anticipation of Council approval, the City and Eden applied to Alameda County Housing and <br />Community Development Department for the $4 million for Parrot Street Apartments in late <br />November 2017. Upon approval by the City Council and the Alameda County Board of <br />Supervisors, Eden will contract with the County for the $4 million from the City’s share. The <br />County plans to issue a bond to finance the first round of applicable affordable housing projects <br />and programs including Parrot Street Apartments. <br />Additionally, the City seeks to apply as a joint applicant with Eden Housing to the State Affordable <br />Housing and Sustainable Communities (AHSC) Program. The Strategic Growth Council released <br />the AHSC Program Notice of Funding Availability in July 2017 with a deadline for applications of <br />January 16, 2018. City staff have been working closely with Eden, Enterprise Community <br />Partners (a technical assistance provider for the AHSC program), and AC Transit to compile a <br />competitive AHSC Program application. The application requests financing for the Parrot Street <br />Apartments in addition to grants for active transportation infrastructure projects and programs. <br />This is the third year for this program with a total of approximately $255 million available in <br />funding for this year’s Notice of Funding Availability round. In the last two rounds, there were <br />approximately $1 billion in funds requested and about $455 million awarded statewide including <br />for Marea Alta Phase 2. The source of these funds is the State’s Greenhouse Gas Reduction <br />Fund (which are revenues from the State Cap & Trade auctions). <br />Page 2 City of San Leandro Printed on 1/2/2018 <br />7