Title
Adoption of Resolution Authorizing the Interim City Manager, or Designee, to Provide and Execute Letters of Support to the Alameda Housing Authority for Pursuing Funding for Affordable Housing Projects Approved by the City. (Planning, Building and Transportation 20962710)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
Adoption of this resolution would authorize the Interim City Manager, or designee, to provide letters of support on behalf of the City Council to the Alameda Housing Authority in pursuit of grant funding for affordable housing projects. The authorization applies only to those affordable housing projects that have already been approved by the City of Alameda (City).
BACKGROUND
The Alameda Housing Authority (AHA) relies on a variety of funding sources to pay for the development of affordable housing projects in Alameda. Often the funding sources and application processes require AHA to provide a timely letter of support issued by the local governing body. To streamline the process of obtaining such letters, AHA requests the City Council authorize the Interim City Manager, or designee, to provide and execute these letters on behalf of the City Council. The letters of support would only be provided after an affordable housing development project has been approved by the City.
DISCUSSION
At the present time, AHA is in the process of redeveloping approximately 12 acres of land at the former Alameda Naval Air Station (NAS) known as the North Housing site. AHA is leading the development under a homeless accommodation conveyance, alongside partners Alameda Point Collaborative (APC) and Building Futures. Island City Development (ICD) is the developer.
On September 15, 2020, the City Council approved Tentative Map Tract 8561 and Density Bonus Application for the North Housing project. North Housing Block A, the first phase of the North Housing project consisting of 91 units of supporting housing and 64 units of senior housing, was subsequently approved on February 15, 2022.
On July 12, 2022, ICD submitted a funding application for North Housing PSH II and North Housing Senior Apartments to the California Department of Housing and Community Development (HCD) under the Multifamily Super Notice of Funding Availability (MFSN). Pursuant to the State HCD guidelines, projects submitted for funding consideration under the MFSN is required to provide a letter of support from the governing body of the local agency (here, the City Council) by October 14, 2022.
In anticipation of needing this letter of support and potentially other letters for future funding sources, AHA is requesting the City Council authorize the Interim City Manager, or designee, to provide and execute these letters of support for AHA projects approved by the City.
ALTERNATIVES
The City Council may:
• Adopt the resolution; or
• Choose to not adopt the resolution authorizing the Interim City Manager provide such letters of support in which case each request for a letter must come before the City Council for approval. Due to the lead time needed to schedule an item for City Council approval, staff and AHA does not recommend the alternative because any delay in the City Council action could risk the loss of potential funding for an approved affordable housing project.
FINANCIAL IMPACT
There is no financial impact to the City from authorizing the City Manager to provide letters of support to AHA in pursuit of grant funding. If the City Council does not authorize providing letters of support for affordable housing projects, then there could be a risk of losing potential state funding necessary for the financial feasibility of affordable housing projects.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Authorizing the Interim City Manager, or designee, to provide letters of support for affordable housing projects is consistent with Alameda 2040 General Plan policies to facilitate and support the increase of affordable housing in the community.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) applies only to projects that have the potential for causing a significant effect on the environment. This action is not a project pursuant to Public Resources Code section 21065 and CEQA Guidelines section 15378.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Adopt a resolution authorizing the Interim City Manager, or designee, to provide and execute letters of support to the Alameda Housing Authority for pursuing funding for affordable housing projects approved by the City.
Respectfully submitted,
Andrew Thomas, Planning, Building and Transportation Director
Vanessa Cooper, Executive Director of the Housing Authority of the City of Alameda
By,
Allen Tai, City Planner
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibit:
1. Sample Support Letter
cc: Nancy Bronstein, Interim City Manager