Title
Adoption of Resolution Authorizing the Interim City Manager, or Designee, to Execute an Agreement to Secure $44,550,361 in Affordable Housing and Sustainable Communities (AHSC) Program Grant Funding and All Amendments Thereafter.
In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption). (Base Reuse and Economic Development 29061822)
Body
To: Honorable Mayor and Members of the City Council
From: Adam W. Politzer, Interim City Manager
EXECUTIVE SUMMARY
On December 10, 2025, the City of Alameda (City) and MidPen Housing Corporation (MidPen) were conditionally awarded $44,550,361 in grant funding through Round 9 of the State of California’s Affordable Housing and Sustainable Communities (AHSC) program. The award funds will support the development of Stardust Gardens, the 80-unit first phase of the 332-unit Rebuilding Existing Supportive Housing at Alameda Point (RESHAP) project. Funding will also be dedicated to an array of transit, bicycle, and pedestrian improvements within close proximity of RESHAP. This includes installing electric ferry charging capabilities at the Seaplane Lagoon Ferry Terminal by the San Francisco Bay Ferry Water Emergency Transportation Authority (WETA) to support higher frequency electric ferry service, completing the first phase of the Willie Stargell Complete Streets Project, installing safety improvements on 5th Street between Stargell Avenue and Ralph Appezzato Memorial Parkway, the Neighborhood Greenway on Mosley Avenue/3rd Street from Stargell Avenue to Central Avenue, and bus improvements for the second phase of the Alameda Point Adaptive Reuse Area Backbone Infrastructure project. The award will also fund programmatic initiatives primarily benefiting residents in and around Alameda Point.
To secure the conditionally awarded AHSC funding and participate in the AHSC program, MidPen and the City will both need to enter into and execute a standard agreement and all necessary amendments (collectively, “Program Award Documents”) no later than twenty-four (24) months from receiving the conditional award (December 2027). Execution of the Standard Agreement may occur after funding for the first phase of RESHAP is secured. The California Department of Housing and Community Development Department (HCD) requires that a resolution authorizing the Interim City Manager, or designee, to execute Program Award Documents on behalf of the City be adopted within sixty (60) calendar days of the date of the Conditional Award or by February 9, 2026. The included resolution, if adopted, would satisfy this requirement.
Separately, staff will return to City Council for approval of a passthrough agreement between the City and WETA later this year.
BACKGROUND
The AHSC program was established with a passage of Senate Bill 182 to implement Assembly Bill 32; the California Global Warming Solutions Act 2006 by creating a “Cap and Trade” program funding various greenhouse gas reducing initiatives, including this one, through fees on major polluters. AHSC is administered by the California Strategic Growth Council (SGC) and implemented by HCD. The purpose of the AHSC Program is to reduce and offset greenhouse gas (GHG) emissions through projects that implement land use, housing, transportation, and agricultural land preservation practices to support infill and compact development, as well as support related and coordinated public policy objectives. AHSC seeks to fund affordable housing and transportation projects close to jobs, schools, and other daily destinations to help California meet both its climate and equity goals.
On May 20, 2025, staff provided an update to City Council on the City’s joint application with MidPen for Round 9 of the AHSC funding program. As a part of that update, staff informed City Council that if awarded a grant, staff would bring back for consideration any necessary approvals.
On May 28, 2025, the City and MidPen submitted a joint application for AHSC Round 9. The joint application was one of 47 received by HCD.
On December 10, 2025, the SGC awarded the City and MidPen $44,550,361 million in grant funding and the City and MidPen received a Conditional Award letter from HCD.
On December 17, 2025, Interim City Manager Politzer accepted the terms and conditions of the Conditional Award, including a commitment to bring before City Council for consideration, within sixty (60) calendar days of the date of the Conditional Award, a resolution authorizing the execution of Program Award Documents.
DISCUSSION
The $44,550,361 award will support the development of affordable housing and an array of transit, bicycle, and pedestrian improvements within close proximity of RESHAP that will significantly enhance connectivity within the Citywide and area-wide network. Specifically, funding would be dedicated to the development of the following:
• The first phase of RESHAP housing, called Stardust Gardens, an 80-unit, supportive housing apartment project managed by MidPen with services provided by Alameda Point Collaborative.
• Electric ferry charging capabilities will be added to the ferry terminal at Seaplane Lagoon in Alameda Point. The electrification of the terminal will support the operation of a higher frequency electric ferry service by SF Bay Ferry.
• Improvements to the Stargell Avenue corridor and Alameda Point bus stops consisting of approximately 2,400 feet of new sidewalk, 1.24 lane-miles of Class IV separated bikeways, safer crossings/traffic calming, and six new/enhanced bus stops to close a critical low-stress network gap and connect to regional transit.
• Improvements to 5th Street from Stargell Ave to Ralph Appezzato Memorial Parkway (RAMP) including upgrading to 0.7 lane-miles of Class IV curb-separated bikeways, adding a partially protected intersection at 5th/RAMP, enhancing crosswalks, upgrading ADA ramps, and installing landscaping to complete a north-south low-stress link.
• Improvements to the Mosley Ave/3rd Street Neighborhood Greenway consisting of constructing 1.68 lane-miles of bicycle boulevard with traffic calming, 4,412 feet of continuous accessible walkways, curb extensions, landscaped traffic circles, 13 speed humps, 48 upgraded crosswalks, and signal safety enhancements.
• 1,114 feet of new publicly accessible walkways, crosswalks, curb ramps, lighting, and greening within the Stardust Gardens site, connecting to the Pan Am Way network via a raised intersection.
• Programmatic initiatives focused on anti-displacement and workforce development primarily benefiting residents in and around Alameda Point.
Without this AHSC funding, alternative funds would need to be identified to both Stardust Gardens and the proposed transportation improvements. It is unlikely that MidPen would be able to secure an alternative source of this magnitude at this stage.
The purpose of this agenda item is to request City Council adoption of a resolution authorizing the Interim City Manager, or designee, to execute the Program Award Documents to secure $44,550,361 in ASHC program funds.
HCD has provided a resolution template for public entities to reference and stated in the use of the template may assist in the timely review and approval of program award documents. Therefore, note that while the included resolution differs from the City’s standard resolution template, staff has elected to make only minimal modifications to the HCD template.
While this resolution authorizes the execution of the Program Award Documents, staff will return to City Council at a later date for authorization of additional agreements associated with this grant application, including a passthrough agreement to allocate funds to WETA for the Seaplane Lagoon Ferry Terminal electric charging capabilities project.
ALTERNATIVES
City Council may consider a range of alternatives:
• Authorize the adoption of resolution authorizing the Interim City Manager to or designee, enter into and execute a Standard Agreement to secure $44,550,361 in ASHC program funds and all amendments thereafter (collectively, the “Program Award Documents”).
• Authorize the recommended resolution with revisions.
• Direct staff to pursue a different approach. In this case, it will be difficult to secure funding to deliver the RESHAP project.
FINANCIAL IMPACT
The grant provides $44,550,361 to fund the development of Stardust Gardens, the 80-unit first phase of the 332-unit RESHAP project, an array of transit, bicycle, and pedestrian improvements, as well as programmatic initiatives benefiting, primarily, residents in and around Alameda Point. The transit, pedestrian, and bicycle improvements that would be funded by the grant award were selected from the City and other agencies’ existing, unfunded priority projects, thereby offsetting the need to provide or secure funds to bring these projects to fruition. There is no local match required for this grant.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is in conformance with the Alameda Municipal Code and all policy documents. The acceptance of these grant funds and related commitments are in alignment with the City's Climate Action and Resiliency Plan (CARP), Active Transportation Plan's 2030 Infrastructure Plan, Alameda Point Transportation Demand Management Plan, Green Infrastructure Plan, Vision Zero Action Plan, Transportation Choices Plan (TCP), Economic Development Strategic Plan (2018), and Strategic Plan Goal HH6 to Support implementation of West Midway (mixed use) and RESHAP (supportive housing) developments at Alameda Point. This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
On a separate and independent basis, this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption).
CLIMATE IMPACT
Successful completion of AHSC-funded housing and transportation projects will improve the City’s resiliency to the impacts of climate change.
RECOMMENDATION
Adopt a resolution authorizing the Interim City Manager, or designee, to execute a standard agreement to secure $44,550,361 in Affordable Housing and Sustainable Communities (ASHC) program funds and all amendments thereafter.
Respectfully submitted,
Abigail Thorne-Lyman, Base Reuse and Economic Development Director
By,
Walker Toma, Community Development Manager
Financial Impact section reviewed,
Ross McCarthy, Finance Director