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AGENDA BILL Agenda Item No. 5(D) Date: December 2, 2014 To: El Cerrito City Council From: Hilde Myall, Housing Program Manager Melanie Mintz, Interim Community Development Director Subject: Joint Application with Eden Housing for State Proposition 1C Infill Infrastructure Grant Funds for the San Pablo Avenue Senior Housing Development ACTION REQUESTED Adopt a resolution approving and authorizing the City as co-applicant with Eden Housing, Inc. to apply for Proposition 1C Infill Infrastructure Grant funds for the San Pablo Avenue Senior Housing Development at 10848-10860 San Pablo Avenue. BACKGROUND On April 22, 2014 the City Council approved a Disposition, Development and Loan Agreement (DDLA) with Eden Housing, Inc. for the proposed mixed-use affordable senior housing project at 10848-10860 San Pablo Avenue. As part of the project financing, Eden Housing, Inc. proposes to apply for State Infill Infrastructure Grant funds from the California Department of Housing and Community Development (HCD) in an amount not to exceed $1.2 million. Eden Housing has requested that the City be a co-applicant and co-recipient of the grant funds on behalf of the project. In the event the application is successful, the City would in turn loan the Infill Infrastructure Grant funds to Eden Housing, or its affiliate, for the purpose of developing and constructing the project. In the past, the City and Resources for Community Development were co-applicants and co-recipients for this same funding source to help fund the Ohlone Gardens Housing Development, and successfully utilized the same pass-through loan arrangement. STRATEGIC PLAN CONSIDERATIONS Approval of the proposed resolution and submittal of the application for grant funds is consistent with El Cerrito Strategic Plan Goal A – Deliver exemplary government services, Goal B – Achieve long-term financial sustainability, and Goal C – Deepen a sense of place and community identity. Specifically, approval of the submittal of the joint application for grant funds will support the “develop and strengthen relationships with public and private partners” strategy (Goal and the “explore opportunities for public/private partnerships” and “pursue opportunities for…outside grants” strategies (Goal The San Pablo Avenue Senior Housing Development fulfills “re-imagining and reinvesting in underutilized properties” strategy (Goal The multi-year effort to develop the San Pablo Avenue Senior Housing Development demonstrates the City’s aim to work collaboratively with private non-profit partners and local, state and federal agencies to leverage the City’s investment in the project, preserve unique historic resources and help meet sustainability goals around transit-oriented development as well as General Plan Housing Element programs to assist in the development of affordable housing for seniors. ---PAGE BREAK--- Agenda Item No. 5(0) ENVIRONMENTAL CONSIDERATIONS The application and potential award of grant funds is not a project under the California Environmental Quality Act (CEQA). The proposed San Pablo Avenue Senior Housing Development itself has already been reviewed and received CEQA certification as part of the project discretionary approvals. FINANCIAL CONSIDERATIONS Any award of funds from the State Infill Infrastructure Grant Program would be grant funds and thus the City would not incur any debt obligation as a result of receiving these funds. There is not a match requirement for these funds. The City would incur some staff time in the administration of these funds. Staff time for project management of the Eden Housing project, including any grant administration associated with a potential award of these funds, is budgeted within the Low and Moderate Income Housing Asset Fund. LEGAL CONSIDERATIONS The City Attorney has reviewed this staff report and associated resolution. Reviewed by: City Manager Attachments: 1. Resolution Page 2 ---PAGE BREAK--- Agenda Item No. 5(D) Attachment 1 RESOLUTION 2014–XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY EL CERRITO AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR FUNDING UNDER THE INFILL INFRASTRUCTURE GRANT PROGRAM; THE EXECUTION OF A STANDARD AGREEMENT IF SELECTED FOR SUCH FUNDING AND ANY AMENDMENTS THERETO; AND ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE INFILL INFRASTRUCTURE GRANT PROGRAM WHEREAS, the former El Cerrito Redevelopment Agency (the “Agency”) and the City of El Cerrito (“City”) have encouraged redevelopment in specific portions of the El Cerrito Redevelopment Project Area in accordance with the goals and objectives of the City of El Cerrito Redevelopment Plan as amended; and WHEREAS, pursuant to City Council Resolution No. 2014-10, the City has entered into a Disposition Development and Loan Agreement (the “DDLA”) with Eden Housing, Inc. (the “Developer”) pursuant to which the City will sell 10848 and 10860 San Pablo Avenue (the “Property”) to the Developer and the Developer will develop a mixed use development consisting of 63 residential units and ground floor commercial, including 62 units of affordable rental housing with resident services for seniors, a medical clinic and the renovation of the Contra Costa Florist structure (the “Project”); and WHEREAS, the City of El Cerrito, a general law city, wishes to apply, with Eden Housing, Inc., for and receive an allocation of funds through the Infill Infrastructure Grant Program for the Project; and WHEREAS, the California Department of Housing and Community Development (hereinafter referred to as “HCD”) has issued a Notice of Funding Availability (“NOFA”) for the Infill Infrastructure Grant Program established under the Housing and Emergency Shelter Trust Fund Act of 2006 (Proposition 1C) pursuant to the Infill Infrastructure Grant Program established Part 12 of Division 31 of the Health and Safety Code, commencing with Section 53545.12. Pursuant to the statute, HCD is authorized to approve funding allocations utilizing monies made available by the State Legislature, subject to the terms and conditions of the statute and the Infill Infrastructure Grant Program Guidelines implemented September 25, 2014; and WHEREAS, the City wishes to submit an application to obtain from HCD an allocation of the Infill Infrastructure Grant Program funds in an amount not to exceed $1,200,000. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of El Cerrito as follows: 1. That the City shall submit to HCD an application to participate in the Infill Infrastructure Grant Program in response to the NOFA issued on September 25, 2014 which will request a funding allocation in an amount not to exceed $1,200,000 for the following activities: eligible construction and construction-related work located in or as part of the Project. 2. If the application for funding is approved, the City hereby agrees to use the Infill Infrastructure Grant Program funds for eligible activities in the manner presented in the application as approved by HCD and in accordance with program Guidelines cited above. ---PAGE BREAK--- Agenda Item No. 5(D) Attachment 1 It also may execute any and all other instruments necessary or required by HCD for participation in the Infill Infrastructure Grant Program. 3. The City authorizes the City Manager to execute in the name of the City of El Cerrito the application, the Standard Agreement, and all other documents required by HCD for participation in the Infill Infrastructure Grant Program, and any amendments thereto. BE IT FURTHER RESOLVED that this Resolution shall become effective immediately upon passage and adoption. I CERTIFY that at a regular meeting on December 2, 2014 the City Council of the City of El Cerrito passed this Resolution by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on December XX, 2014. Cheryl Morse, City Clerk APPROVED: Janet Abelson, Mayor