DATE: November 14, 2023
TO: Mayor and City Council
Hayward Housing Authority
FROM: Housing Authority Executive Director/City Manager
SUBJECT
Title
Adopt a Resolution Authorizing the Execution of a Third Amendment to Disposition, Development, and Loan Agreement with Habitat for Humanity East Bay to Modify the Conditions of Transfer for the Property Located at 123-197 A Street (A & Walnut/Sequoia Grove) and Affirming the Mitigated Negative Declaration which was Prepared for the Project in Accordance with the Requirements of the California Environmental Quality Act (CEQA) as Adopted by City Council on January 27, 2015
End
RECOMMENDATION
Recommendation
That the Housing Authority Board adopt a resolution (Attachment II) authorizing the execution of a Third Amendment to Disposition, Development, and Loan Agreement with Habitat for Humanity East Bay/Silicon Valley, Inc. to modify the conditions of transfer for the property located at 123-197 A Street (A & Walnut/Sequoia Grove).
End
SUMMARY
The Housing Authority entered into a Disposition, Development, and Loan Agreement (DDLA) with Habitat in 2014, providing a $600,000 loan and outlining the terms of the sale of the property located at 123-197 A Street, for the development of a 10-unit, for-sale affordable townhome project known as Sequoia Grove. Soil contamination found at the site of the project and other delays for various reasons beyond Habitat’s control caused the project to lose secured state funding in 2018, widening the project’s funding gap and hindering development of the project. Despite the unforeseen challenges, Habitat continued to address the soil contamination and to pursue funding for the project. In 2021, Habitat was awarded $1,002,500 from the California Department of Housing and Community Development Department CalHome Program. In 2022, Habitat received $3,736,990 from various federal and state agencies, including an additional $200,000 from the City’s Inclusionary Housing Fund to fully fund the project. Around the time Habitat was able to finally secure full funding for the project, the entitlements expired for the project and Habitat had to reapply for entitlements on April 6, 2023 which were reapproved by the Planning Commission on September 28, 2023. This project has overcome many challenges and is now fully entitled and funded. Staff is proposing modifying the DDLA to allow early transfer of the property to Habitat which would facilitate the start of grading and allow Habitat to address soil mitigation and apply for building permits at the same time to keep this project moving forward.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution