Title
Adoption of Resolution Authorizing the Use of $1.67 Million of the Base City Allocation (Alameda County Measure A1 Housing Bond Funds) to Support the Rosefield Redevelopment Project, as Required for Application to Alameda County Rental Housing Development Fund (700 Block of Eagle and Buena Vista Avenues). (Housing)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Acting City Manager
Re: Adoption of Resolution Authorizing the Use of $1.67 Million of the Base City Allocation (Alameda County Measure A1 Housing Bond Funds) to Support the Rosefield Redevelopment Project, as Required for Application to Alameda County Rental Housing Development Fund (700 Block of Eagle and Buena Vista Avenues)
BACKGROUND
In 2016, Alameda County voters passed the Countywide Housing Bond (Measure A1 Housing Bond). Of the total Measure A1 Housing Bond, $425 million is allocated to the Rental Housing Development Fund. Of the total amount allocated to the Rental Housing Development fund, $225 million is allocated as “Base City Allocation” funding to Alameda County jurisdictions based on a geographical allocation formula. The City of Alameda’s Base Allocation is $10.4 million. Of this amount, the County will retain 10% for administration of the bond program, leaving $9.4 million to be allocated to affordable housing projects.
On March 7, 2017, the City Council approved a pre-commitment of $6 million of its Base Allocation; $1 million to support 20 units being developed at 2437 Eagle Avenue and $5 million to support the two projects at Alameda Point Site A. As of March 2018, the balance of Alameda’s Base Allocation available for other projects is $3.34 million
In December 2015 Housing Authority (AHA) staff presented to the City Council a Five-Year Pipeline Report for affordable housing that identified 16 active or proposed affordable housing developments, including both rental and for-sale projects. Of the listed projects, six have been completed or are now under construction. These six are Stargell Commons, 2437 Eagle Avenue, Del Monte Senior (rental), and Marina Shores, Alameda Landing and 2100 Clement (Mulberry) for-sale units. A seventh project, Site A rental, is planned to break ground by the end of 2018.
Rosefield Village is a 47-unit property owned by the Housing Authority that is one of the 16 listed projects and it was identified as a potential redevelopment site. The Housing Authority has owned the land since 1955, and the property includes 40 pre-fabricated units that were put into service in 1979. These units have reached the near-end of their useful life. AHA has engaged Dahlin Group Architecture to evaluate the site redevelopment potential, to design a site plan, and prepare construction drawings. In September 2017, the Planning Board approved the Rosefield site plan. The development plan assumes the demolition of the 40 units and includes 78 proposed new units in addition to 13 existing units, for a total of 91 units (Exhibit 1). Building plans and elevations are in progress and will be submitted in June 2018 to seek Planned Development approval through the Planning Board (Exhibit 2).
DISCUSSION
AHA staff is now working to secure funding to redevelop the Rosefield site and to construct 78 new units. In early 2017, AHA staff applied for Veterans Administration Supportive Housing (VASH) vouchers and Veteran’s Housing and Homeless Prevention Program (VHHP) funding but was unsuccessful. In December 2017, the AHA Board of Commissioners approved $5.7 million to support the project. In 2018, staff applied for Affordable Housing Program funds through the Federal Home Loan Bank and the application is pending. AHA staff would now like to apply for Alameda Measure A1 Housing Bond funds from the City’s Base City Allocation. AHA funds will count as the local match, as required by the County to qualify for the bond funds. The next County application due date is April 20, 2018. This application date is specifically for applicants seeking a share of Base City Allocations. Later in 2018, the County will accept applications for additional competitive county-wide bond funds. The AHA Board authorized the submission of both applications to the County at its March 21, 2018 meeting.
The County policy for the Rental Housing Development fund requires all projects to demonstrate that Base City Allocations have been authorized by the approving body for each project, and a City Resolution is required to be submitted with the application.
In order to maximize the number of projects that will be supported by the City Base Allocation, the AHA request is for 50% of the remaining funds. This amount is $1.67 million. It is expected that the rebuilding of the existing supportive housing units at Alameda Point, called the RESHAP Project, will apply for the balance of the City Base Allocation in 2019. The total development costs of the Rosefield project are estimated to be $52 million. Thus, the funds from the Base City Allocation as a percentage of total development cost will be approximately 3%. When the next application cycle is announced, AHA staff will also apply for competitive county-wide bond funds (approximately $9 million). Once County bond funds have been awarded, funding applications to the State have a good chance for success. AHA staff will then seek special purpose funds so that some units can be made available to assist targeted populations (i.e. veterans and the homeless), and will apply for federal and/or State tax credits.
The Housing Authority anticipates all funding sources to be secured by the end of 2019. Approving the $1.67 million in City Base Allocation funds will allow the Housing Authority to secure additional funding going forward. The redevelopment of Rosefield will replace 40 pre-fabricated units with 78 new units, a net increase of 38 new affordable units.
FINANCIAL IMPACT
There is no impact to the City’s General Fund from allocating the funds from the City’s Base Allocation of County affordable housing bond funds. The bonds are general obligation bonds issued by Alameda County that are repaid by property owners throughout the County as part of their property tax billing.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This affordable housing project will be developed pursuant to a number of City documents including the Five-Year Affordable Housing Pipeline and the Housing Element of the General Plan.
ENVIRONMENTAL REVIEW
The project is exempt from California Environmental Quality Act (CEQA) pursuant to California Public Resources Code Sections 21159.21, 21159.23 (exemption for affordable housing) and 21159.24 (exemption for infill affordable housing). Furthermore, the project does not trigger any of the exceptions in CEQA guidelines, Section 15300.2 in that the project will not have any significant effects due to unusual circumstances or any cumulatively significant impacts and will not adversely impact any designated historic resources.
RECOMMENDATION
Adopt a resolution authorizing the use of $1.67 Million of the Base City Allocation to support the Rosefield Redevelopment Project, as required for an application to Alameda County Rental Housing Development Fund (700 block of Eagle and Buena Vista Avenues) Respectfully submitted,
Debbie Potter, Community Development Director
By,
Victoria Johnson, Housing Authority of the City of Alameda
Financial Impact section reviewed,
Edwin Gato, Acting Finance Director
Exhibits:
1. Rosefield Approved Site Plan
2. Rosefield Draft Building Elevations and Floorplan