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Home My WebLink About8.1 Study Session - Sunflower Hill at Grace Pointe ProjectSTAFF REPORT CITY COUNCIL Page 1 of 5 Agenda Item 8.1 DATE:March 18,2025 TO:Honorable Mayor and City Councilmembers FROM:Colleen Tribby, City Manager SUBJECT:Study Session -Sunflower Hill at Grace Pointe ProjectPrepared by:Amy Million, Assistant Community Development Director EXECUTIVE SUMMARY:The City Council will hold a Study Session on the Sunflower Hill at Grace Pointe project. The proposed project would be developed through a partnership between Sunflower Hill and Satellite Affordable Housing Associates (SAHA). The project consists of the construction of a three-story multi-family apartment building with approximately 60 affordable homes for people with intellectual and developmental disabilities (I/DD) and their households. The development includes two community rooms, a makerspace, a fitness room, and a central courtyard with amenities. On March 6, 2025, Sunflower Hill submitted a preliminary application pursuant to Senate Bill (SB) 35, as a housing project eligible for streamlined approval. As part of this application, Sunflower Hill is seeking the opportunity to share their initial design with the CityCouncil. No action will be taken at this study session. STAFF RECOMMENDATION:Receive a presentation from the Applicant on the proposed project and provide feedback. FINANCIAL IMPACT:All costs associated with processing the applications are born by the Applicant. On November 5, 2024, the City Council approved an Affordable Housing Assistance Agreement with Sunflower Hill for funding to support the proposed affordable housing project. The City will loan the developer $5 million from the City’s Affordable Housing Fund in the form of a $2 million predevelopment loan and a $3 million construction loan. The City is also facilitating the acquisition of the 1.8-acre project site at no cost to the developer. Through the project Development Agreement and Affordable Housing Agreement, Landsea Homes committed to dedicating the project site to the City or its designee, which is Sunflower Hill. 193 Page 2 of 5 DESCRIPTION:Background The Sunflower Hill at Grace Pointe (Grace Pointe) project site is part of the larger Dublin Centre project (formerly known as SCS Dublin). The Dublin Centre (or The DC) project is located on 54acres between Tassajara Road and Brannigan Street, north of Dublin Boulevard. The Dublin Centre by Landsea Homes is a mixed-use development which includes 500 residential units, 105 accessory dwelling units, approximately 38,000 square feet of retail commercial uses, a public park, a community center and a 1.8-acre Public/Semi-Public Site for affordable housing,which is the subject of this Staff Report. As shown in Figure 1 below, the project site is located at the northwest corner of Dublin Boulevard and Brannigan Street in Planning Area 2 (PA-2) on a portion of Assessor’s Parcel Number 985-0051-006-00. The 1.8-acre project site is shown on the approved Vesting Tentative Parcel Map and the parcel will be finalized as part of the Final Map for PA-2.Figure 1. Project Location 194 Page 3 of 5 On February 15, 2022, following an extensive community engagement process, the City Council approved the Preferred Plan for The DC. In November and December 2022, the City Council held a public hearing and certified the Final Environmental Impact Report (Resolution No. 135-22), approved General Plan and Eastern Dublin Specific Plan Amendments (Resolution No. 136-22), and adopted Ordinances approving Planned Development Zoning with Stage 1 and Stage 2 Development Plans and approving a Development Agreement (Ordinance No. 15-22 and No.16-22) for the DC. On February 5, 2025, the City Council approved an Affordable Housing Agreement for the DC (Resolution No. 10-25). In accordance with the Development Agreement and Affordable Housing Agreement, Landsea Homes will complete the rough grading of the affordable housing site and associated improvements (i.e., curb, gutter, sidewalk, landscape, irrigation, and access roadways on all sides of the site). Landsea will then dedicate the project site to the City or its designee, which is Sunflower Hill. A grading permit for all Planning Areas was issued on June 28, 2024, and the grading has since commenced. Proposed ProjectThe proposed Grace Pointe project consists of the construction of a three-story multi-family apartment building with approximately 60 affordable homes for people with intellectual and developmental disabilities (I/DD) and their households. The development includes two community rooms, a makerspace, a fitness room, and a central courtyard with amenities.On March 6, 2025, Sunflower Hill submitted a preliminary application pursuant to Senate Bill (SB) 35, as a housing project eligible for streamlined approval. SB 35 applies to California Cities and Counties where production of new housing has not met the state-mandated Regional Housing Need Allocation (RHNA) targets. The determination of applicability is made by the California Department of Housing and Community Development(HCD) based on their review of the Housing Element Annual Progress Report submitted by each jurisdiction. As of June 3, 2024, HCD determined that the City of Dublin has exceeded the housing needs for above moderate-income units; however, made insufficient progress towards the construction of lower-income units (very-low- and low-income) and is therefore subject to SB 35 for proposed developments with at least 10% affordability.Cities and counties subject to SB 35 must use a streamlined, ministerial review process for qualifying multi-family residential projects. To apply for streamlined ministerial approval under SB 35, a project applicant must first submit a preliminary application. Within 30 calendar days of receiving the preliminary application, the City must provide formal notice for each Native American tribe traditionally and culturally affiliated with the geographic area of the project site. Staff provided the initial consultation letter on March 7, 2025. If, after concluding the scoping consultation, it is determined that no potential tribal cultural resource would be affected by the proposed development, the applicant may submit the formal SB 35 application. In conformance with State law, the City of Dublin requires a Zoning Clearance for SB35 projects. This is a ministerial approval process meaning that it is not subject to a conditional use permit or any other nonlegislative discretionary approval by the Planning Commission or the City Council if 195 Page 4 of 5 the development complies with all submittal requirements and all applicable objective planning standards, including the objective development standards in the Planned Development (Ordinance No. 14-22), City-wide Multi-Family Objective Design Standards, General Plan, Eastern Dublin Specific Plan, etc. Staff will be able to conduct a thorough review of the project for its consistency with the City’s requirements upon submittal of the Zoning Clearance. City Council Study SessionPrior to submitting the SB35 Zoning Clearance Application, Sunflower Hill is seeking an opportunity to share their initial designs for the project with the City Council. The applicant team will present the proposed project to the City Council at the Study Session. The City Council will then have an opportunity to provide feedback to the applicant team. The request letter and the preliminary project plans are included as Attachments 1 and 2, respectively. Housing ElementThe Grace Pointe project site is designated in the 2023-2031 Housing Element as an opportunity site that can accommodate up to 100 lower-income affordable housing units. The “No Net Loss” law requires local governments to take certain steps when a project is approved with fewer units than were identified for the site in the local government’s Housing Element. In approving the project, the local government must determine whether the remaining sites in the Housing Element are adequate to meet the regional housing need. If the remaining sites are inadequate, the local government has 180 days to “make available” additional sites to accommodate the need. (See Gov. Code, § 65863, subds. (b)(2) and (c)(2).)If it approves the application for 60 affordable housing units, the City would need to find whether the shortfall of 40 lower income units can be accommodated on the remaining sites identified in the Housing Element. In conjunction with its adoption of the 2023-2031 Housing Element, the City Council approved a rezoning, in coordination with the Alameda County Surplus Property Authority, the property owner, of Site E-2 in the Dublin Transit Center from Campus Office to Campus Office/High-Density Residential. This action created lower-income residential development capacity of 493 residential units on Site E-2. 247 of those units were identified in theHousing Element. As was contemplated at the time of the adoption of the Housing Element, the remainder of the development capacity on Site E-2 (246 units) could be used to make the “No Net Loss” law finding that the remaining sites are adequate. The City has previously used the site to meet a 74-unit deficit created by a land-use change on the GH PacVest property, which leaves 172 units available for such purposes. Thus, should Staff approve the project described in the preliminary application, Staff will make the required finding and indicate that the 40-unit deficit can be accommodated on Site E-2, leaving 132 units of surplus “lower income” capacity on Site E-2. STRATEGIC PLAN INITIATIVE:Strategy 3: Housing Inclusivity and AffordabilityObjective A: Implement the goals, policies, and programs in the 2023-2031 Housing Element.Objective B: Support efforts to produce housing affordable at all levels of income.Objective E: Support efforts to address housing for special needs communities. 196 Page 5 of 5 NOTICING REQUIREMENTS/PUBLIC OUTREACH:The City Council Agenda was posted, and a copy was provided to the Applicant. ATTACHMENTS:1) Letter from Sunflower Hill dated March 10, 20252) Preliminary Project Plans 197 March 10, 2025 Ms. Amy Million Assistant Community Development Director City of Dublin 100 Civic Plaza Dublin, CA 94568 Dear Amy, Sunflower Hill, in conjunction with our partner, Satellite Affordable Housing Associates (SAHA) has just submitted a SB35 pre-application for the entitlement and development of Sunflower Hill at Grace Pointe. As you know, this is an exciting opportunity to develop approximately 60 deeply affordable housing units specifically for individuals with intellectual and developmental disabilities (I/DD). We are honored to partner with the city of Dublin on the development of this project and salute the city’s commitment to house individuals with I/DD in the region. Our decision to submit a SB35 pre-application is directly connected to an impending state of California Housing and Community Development (HCD) Multi-Family Finance Super NOFA funding opportunity/deadline of April 15, 2025. It is an important potential source of financing critical to our ability to create a ‘funding stack’ for the Grace Pointe project. While there are certainly no guarantees that Sunflower Hill at Grace Pointe will be selected, we are committed to aggressively pursuing all appropriate funding options so that we might bring affordable housing to the I/DD community as soon as possible. That said, the city of Dublin is our strong partner on this project, and so we would appreciate the opportunity to share our initial designs with city council. If there is an opportunity to set up time for a city council study session in the next month, we would be grateful. Thank you for your consideration and please let us know. We are excited to work with you on this important project for Dublin. Best regards, Susan M. Houghton Founder/Board Chair Sunflower Hill cc: Jeff Baker, city of Dublin Jonathan Astmann, SAHA Lauri Moffet-Fehlberg, Dahlin P.O. Box 11436, Pleasanton, CA 94588 925.518. 9704 www.sunflowerhill.org Tax ID #80-0897595 Attachment 1 198 19 9 20 0 20 1 20 2 20 3 20 4 20 5 20 6 20 7 Sunflower Hill at Grace Pointe Study Session March 18, 2025 208 Project Location 209 Background •SCS Outreach / Preferred Plan •SCS Dublin Project –General Plan / Eastern Dublin Specific Plan Amendment –Planning Development Rezone –Development Agreement 210 Background Cont’d. •Dublin Centre Project –Site Development Review Permit –Vesting Tentative Tract Map –Affordable Housing Agreement 211 Proposed Project •Sunflower Hill / SAHA •60 Affordable Units for people with intellectual and developmental disabilities 212 Application Process •Senate Bill (SB) 35 •Preliminary Application –Tribal Notification •Zoning Clearance –Ministerial review –Compliance with all objective development and design standards 213 Recommendation •Receive the presentations by Staff and the Applicant •Questions? Feedback? 214