DATE: August 19, 2025
TO: Mayor and City Council
FROM: Director of Development Services
SUBJECT
Title
Adopt a Resolution Authorizing the City Manager to Execute the Second Amendment to the Disposition, Development, and Loan Agreement with RCD GP IV, LLC and Parcel Group 8, L.P. to Accelerate the Relocation of Occupants for the Transfer of Specified City Owned Properties and for the Development of Housing
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RECOMMENDATION
Recommendation
That the City Council adopts a Resolution (Attachment II) approving the Government Code Section 52201 Summary Report for the project (Attachment III) and authorizing the City Manager to execute the Second Amendment to the Disposition Development and Loan Agreement (DDA) and related documents, with RCD GP IV, LLC and Parcel Group 8, L.P. (Developer) . to Accelerate the Relocation of Occupants for the transfer of specified properties and for the development of new affordable housing and rehabilitation of units for affordable housing.
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SUMMARY
After abandoning the State Route 238 Bypass Project in the 1970s, Caltrans began selling parcels that had previously been acquired for the planned freeway. In order to ensure that future development of the State Route 238 parcels located in Hayward aligned with the City’s land use policies and overall vision, the City negotiated a Purchase and Sale Agreement (PSA) with Caltrans in 2016 to manage the disposition and development of former right of way for the now defunct 238 Bypass. The City-controlled State Route 238 properties are divided into ten “parcel groups.”
On September 15, 2020, the Council provided authorization for the City Manager to negotiate and enter into an Exclusive Negotiating Rights Agreement (ENRA) with Resources for Community Development (Developer), to develop an affordable housing project on the 2.36-acre Affordable Housing Segment, including new construction of affordable housing on the portion of the property within the City (City Portion) and exploration and identifying the development approach for existing naturally occurring affordable housing on the County Portion 1. At the same time, Council also adopted a resolution memorializing that the provisions of affordable housing and an expansion of Carlos Bee Park will satisfy the affordable housing and park dedications for Parcel Group 8. Shortly thereafter, Caltrans authorized the subdivision of Parcel Group 8 to allow for the disposition of the affordable housing, park, and market rate housing segments during separate transactions.
On June 28, 2022, after extensive community engagement and entitlement application approval, the City Council authorized the City Manager to negotiate and execute a Disposition Development and Loan Agreement (DDA) and related documents, with the Developer for the transfer of specified properties and for the development of new affordable housing and rehabilitation of units for affordable housing and found the project is consistent with prior California Environmental Quality Act (CEQA) determinations.2 Developer and City executed the DDA also dated June 28, 2022. On February 20, 2024, The City Council authorized an amendment to the DDA to extend the required close of escrow date from December 31, 2024 to December 31, 2026 and revising the number and size of units in the development plan. The proposed project consists of the construction of 82 new affordable units and the rehabilitation of at least six existing units.
The existing units on the County Portion need major rehabilitation. Anticipated construction start has been delayed due to competitiveness of state housing development funding. The developer is working diligently to secure development funds but because an anticipated construction start date is unknown, staff recommends transitioning the tenants on the County Portion to better quality housing prior to construction start using existing predevelopment funds to provide a moving incentive and moving assistance.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution