DATE: October 18, 2022
TO: Mayor and City Council
FROM: Assistant City Manager
SUBJECT
Title
Allocation of Local Housing Trust Funds: (1) Adopt a Resolution Approving Allocation of the California State Department of Housing and Community Development Local Housing Trust Fund Grant Award to Mission Paradise in the Amount of $1,150,000; and Authorizing the City Manager to Negotiate and Execute Loan Documents Between the City of Hayward and EAH, Inc. in an Amount Not-to-Exceed $1,150,000 for the Development of Mission Paradise; and (2) Adopt a Resolution Approving Allocation of the California State Department of Housing and Community Development Local Housing Trust Fund Grant Award to Parcel Group 8 Affordable Housing in the Amount of $2,645,161; and Authorizing the City Manager to Negotiate and Execute Loan Documents Between the City of Hayward and Resources for Community Development in an Amount Not-to-Exceed $2,645,161 for the Development of Parcel Group 8 Affordable Housing
RECOMMENDATION
Recommendation
That the Council holds a public hearing and:
1. Adopts a resolution (Attachment II) to approve the allocation of California State Department of Housing and Community Development (HCD) Local Housing Trust Fund (LHTF) Program grant award to Mission Paradise in the amount of $1,150,000; and to authorize the City Manager to negotiate and execute loan documents between the City of Hayward and EAH in an amount not-to-exceed $1,150,000 for the development of Mission Paradise; and
2. Adopts a resolution (Attachment III) to approve the allocation of HCD LHTF Program grant award to Parcel Group 8 Affordable Housing in the amount of $2,645,161; and to authorize the City Manager to negotiate and execute loan documents between the City of Hayward and Resources for Community Development (RCD) in an amount not-to-exceed $2,645,161 for the development of Parcel Group 8 Affordable Housing.
End
SUMMARY
Like many cities in the Bay Area, a rise in Hayward’s population absent a corresponding rise in housing units has contributed to soaring home prices and a lack of affordable housing for our most vulnerable populations. Based on Council authority received on July 20, 2021, the City leveraged funds it allocated for EAH’s Mission Paradise and RCD’s Parcel Group 8 Affordable Housing as matching funds to successfully apply for the 2021 HCD LHTF Program Notice of Funding Availability (NOFA). The City applied for the LHTF intending to fund EAH’s Mission Paradise and RCD’s Parcel Group 8 because the projects met the funding requirements and the City’s existing contributions to the projects made the application highly competitive for the funding award. On December 23, 2021, HCD awarded the City $3,994,906, to be awarded consistent with the grant application. The purpose of this public hearing is to review and approve the projects proposed for LHTF allocations as required by HCD. Consistent with the funding application and award, the City proposes to allocate the LHTF funds and enter into loan agreements for the following amounts:
1. $1,150,000 to EAH for the development of Mission Paradise which will provide 75 units of affordable senior housing; and
2. $2,645,161 to RCD for the development of Parcel Group 8 Affordable Housing to provide 105 units of affordable housing.
The balance of the LHTF funds in the amount of $199,745 will be utilized to cover the City’s cost of administering the program.
ATTACHMENTS
Attachment I Staff Report
Attachment II Mission Paradise Resolution
Attachment III Parcel Group 8 Resolution