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HomeMy WebLinkAbout5.2 Affordable Housing and Sustainable Communities Program Application and AssociatedSTAFF REPORT CITY COUNCIL Page 1 of 5 Agenda Item 5.2 DATE:May 6, 2025 TO:Honorable Mayor and City Councilmembers FROM:Colleen Tribby, City Manager SUBJECT:Affordable Housing and Sustainable Communities Program Application and Associated Agreement Prepared by: Sai Midididdi, Senior Civil Engineer EXECUTIVE SUMMARY: The City Council will consider authorizing the submission of an Affordable Housing and Sustainable Communities (AHSC) Program grant application, jointly with The Related Companies of California, LLC, for the Amador Station affordable housing project. The City Council will also consider approving an agreement with The Related Companies for the implementation of the AHSC grant. If awarded, the grant will help fund the construction of the Amador Station affordable housing project, transportation-related improvements by the City, the developer, and Livermore Amador Valley Transit Authority (LAVTA), operating funds for LAVTA, and the purchase of three Bay Area Rapid Transit rail cars. STAFF RECOMMENDATION: Adopt the Resolution Authorizing Application for the Affordable Housing and Sustainable Communities Program and Approving the Affordable Housing and Sustainable Communities Co-Applicants’ Agreement. FINANCIAL IMPACT: Funding from the Affordable Housing and Sustainable Communities grant program is provided by the California Greenhouse Gas Reduction Fund, an account established to receive Cap- and-Trade auction proceeds. If the grant is awarded, it will fund a portion of the Amador Station affordable housing project, associated infrastructure procurement and improvements, and transit program elements. The City would use a portion of the grant funds for design, construction, project management, and grant administration of pedestrian and bicycle infrastructure improvements within public streets. 19 Page 2 of 5 DESCRIPTION: Background On March 21, 2023,and on February 20, 2024, the City Council adopted resolutions authorizing applications for the Affordable Housing and Sustainable Communities (AHSC) Program and approving AHSC Co-Applicants' Agreement (Resolution 25-23 and Resolution 13-24). The Resolutions were in response to Notices of Funding Availability (NOFA) issued by the California Strategic Growth Council (SGC) and the Department of Housing and Community Development (HCD),under the AHSC program. The resulting 2023 and 2024 applications were not selected for AHSC grant funding. On March 25, 2025, SGC and HCD issued a new NOFA,providing another opportunity for the City to partner with The Related Companies of California, LLC to apply for Round 9 of the AHSC program. The program provides grant funds for affordable housing projects that support sustainable communities by reducing greenhouse gas (GHG) emissions. Emission reductions are achieved through strategies that increase access to affordable housing and community amenities via low-carbon transportation options, such as walking, biking, and transit. These efforts aim to reduce the vehicle miles traveled through shortened trip lengths or mode shifts from single-occupancy vehicle use. Project Description The Amador Station project is located on a vacant 3.6-acre parcel owned by the San Francisco Bay Area Rapid Transit (BART)at 6501 Golden Gate Drive. This site is located adjacent to the West Dublin/Pleasanton BART Station (Figure 1). The site is bounded by I-580 to the south, Avalon West residential development to the west, Connolly Station residential community to the north, and Golden Gate Drive to the east. The property lies within the Transit Oriented District of the Downtown Dublin Specific Plan (DDSP)and is being developed by The Related Companies of California, LLC.The Related Companies of California LLC is partnering with Affordable Housing Access, a non-profit agency, for this project. Figure 1:Location Map Grant Funding AHSC program funds are allocated through a competitive process, based on the merits of the SUBJECT PROPERTAvalo n West Conne lly 20 Page 3 of 5 application to support a sustainable housing development that improves transit, walking, and biking infrastructure. The AHSC grant provides an opportunity for the City to partner with The Related Companies of California, LLC to receive funds for bicycle and pedestrian infrastructure improvements. Partnering with the City will result in a complete and competitive AHSC grant application. The Related Companies will also be entering into separate agreements with the Valley Transit Authority (VTA) for the purchase of three BART rail cars and with Livermore Amador Valley Transit Authority (LAVTA) to provide infrastructure and operating funds. VTA is collaborating with BART on the Silicon Valley Extension Project, with VTA managing construction and funding, and BART operating the service. The procurement of BART rail cars provides the project with a competitive application by providing a strong GHG emission reduction component. Discussions between Staff, Related Companies, VTA, and LAVTA have resulted in a proposed AHSC grant application that, if successful, will help fund the affordable housing project, acquisition of BART rail cars, pedestrian and bicycle infrastructure improvements, transit passes, and other program elements. The AHSC program limits the total requested program funding amount to $50,000,000, of which up to $35,000,000 may be requested as a loan for Affordable Housing Development or Housing Related Infrastructure to fund the Amador Station affordable housing project. A maximum of $15,000,000 can be requested for Sustainable Transportation Infrastructure which includes a maximum of $600,000 for Program activities. Costs incurred for required transit passes will not contribute to the $600,000 Program activities cap. These activities are defined in the AHSC Program Guidelines as follows: “Affordable Housing Development” means a capital project of residential development or the residential portion of a mixed-use development in which at least 20 percent of the total units are Affordable Units. “Housing Related Infrastructure” means a capital infrastructure improvement required as a condition of approval of an Affordable Housing Development by a Locality, transit agency, or special district such as sewer, water, or utility system upgrades, streets, drainage basins, etc. or a capital infrastructure improvement allowed under Section 103(c). “Sustainable Transportation Infrastructure” means capital projects that result in the improvement or addition of infrastructure that encourages mode-shift from single occupancy vehicles by enhancing: 1) public transit service, 2) pedestrian networks, or 3) bicycle networks (includes public bike-share programs), as well as transit operations expenditures that directly support transit expansion, within the defined project area meeting the transit requirements detailed in Section 102. Table 1 below provides an overview of the requested funding amount and allocations. 21 Page 4 of 5 Table 1: Funding Request Amounts AHSC Loan Type Maximum Funding Amount Per Program Guidelines Anticipated Funding Request, Not to Exceed Description Funds Recipient Affordable Housing Development (AHD)or Housing related infrastructure $35,000,000 $35,000,000 Phase 1A – Amador Station The Related Companies of California, LLC/Affordable Housing Access Sustainable Transportation Infrastructure (STI) $15,000,000 $8,350,000 BART cars VTA via The Related Companies of California, LLC/ Affordable Housing Access $5,000,000 Bicycle and Pedestrian Improvements Project City of Dublin $500,000 New Sidewalk – On AHD Site Pedestrian Improvements The Related Companies of California, LLC/Affordable Housing Access $200,000 Bus Shelters LAVTA via The Related Companies of California, LLC/ Affordable Housing Access $200,000 Transit Signal Priority (TSP) LAVTA via The Related Companies of California, LLC/ Affordable Housing Access Program Costs (PGM) $300,000*Transit Passes* The Related Companies of California, LLC/ Affordable Housing Access $450,000 Program Component (TBD) The Related Companies of California, LLC/ Affordable Housing Access * Costs incurred for required transit passes do not contribute to the $600,000 Program Costs cap. 22 Page 5 of 5 City Project As shown in the table above, the AHSC application includes a funding request of $5,000,000 for pedestrian and bicycle infrastructure improvements within the City public street rights-of- way. The proposed City project includes pedestrian improvements by reconstructing existing sidewalks to improve accessibility and meet current standards on Regional Street from St. Patrick Way to Dublin Boulevard, and on Dublin Boulevard from Regional Street to Golden Gate Drive. The grant application includes a request for funding bicycle improvements that include installing Class II bicycle lanes on Sierra Court north of Dublin Boulevard and on Sierra Lane from Sierra Court to Dougherty Road, and a Class III bikeway or a Bicycle Boulevard, including signs and shared lane markings, on Civic Plaza south of Dublin Boulevard connecting to the Alamo Canal Trail. Additionally, the AHSC grant will provide funds for five new bus shelters in Dublin, as well as funding for Transit Signal Prioritization along Village Parkway, both of which were identified in partnership with LAVTA. Agreement between the City and The Related Companies To comply with the AHSC program requirements, the City and The Related Companies are required to enter into the AHSC Co-Applicants’ Agreement (Attachment 2). The agreement defines the terms and responsibilities for the City and The Related Companies to implement and deliver their respective improvements to comply with the AHSC program requirements. The AHSC application deadline is May 28, 2025. Announcement of AHSC award recipients is anticipated to be in December 2025. STRATEGIC PLAN INITIATIVE: Strategy 3: Housing Inclusivity and Affordability. Objective 3B: Support efforts to produce housing affordable at all levels of income. Strategy 5: Long-Term Infrastructure and Sustainability Investments. Objective 5A: Continue to explore funding mechanisms for capital and ongoing maintenance needs. Objective 5C: Continue to make progress on the Climate Action Plan and sustainable operations. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: 1) Resolution Authorizing Application for the Affordable Housing and Sustainable Communities Program and Approving the Affordable Housing and Sustainable Communities Co-Applicants’ Agreement 2) Exhibit A to the Resolution – AHSC Co-Applicants’ Agreement 23 Attachment 1 Reso. No. XX-25, Item X.X, Adopted 05/06/2025 Page 1 of 3 RESOLUTION NO. XX – 25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN AUTHORIZING APPLICATION FOR THE AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES PROGRAM AND APPROVING THE AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES CO-APPLICANTS’ AGREEMENT WHEREAS, on August 10, 2021, the Planning Commission approved the Site Development Review Permit for the proposed 300-unit Amador Station development by BRIDGE Dublin, LLC., on a 3.6-acre vacant property owned by the San Francisco Bay Area Rapid Transit District (BART) on Golden Gate Drive, adjacent to the West Dublin/Pleasanton BART Station. The Site Development Review Permit approval was contingent upon subsequent approval of a Community Benefit Program Agreement by the City Council; and WHEREAS, on September 21, 2021, the City Council approved the Community Benefit Program Agreement and Affordable Housing Assistance Agreement between the City and BRIDGE Dublin, LLC; and WHEREAS, BRIDGE Dublin, LLC, has subsequently partnered with The Related Companies of California, LLC, a for profit affordable housing developer; and WHEREAS, on February 21, 2023, the City Council approved amendments to the Community Benefit Program Agreement and Affordable Housing Assistance Agreement between the City and The Related Companies of California, LLC; and WHEREAS, the State of California, the Strategic Growth Council (SGC) and the Department of Housing and Community Development (Department) issued a Notice of Funding Availability on March 25, 2025 (NOFA), under the Affordable Housing and Sustainable Communities (AHSC) Program established under Division 44, Part 1 of the Public Resources Code commencing with Section 75200; and WHEREAS, The Related Companies of California, LLC, engaged the City on partnering on the AHSC Program grant application in an effort to prepare a complete and competitive application; and WHEREAS, The Related Companies of California, LLC, and the City (Applicant) desire to apply for AHSC Program funds and submit the Application Package released by the Department for the AHSC Program; and WHEREAS,The Related Companies of California, LLC., and the City desire to enter into an agreement that defines the terms and responsibilities for the City, and The Related Companies, LLC to implement and deliver their respective improvements to comply with the AHSC program requirements, attached hereto as Affordable Housing and Sustainable Communities Program Co- Applicants’ Agreement (Exhibit A); and WHEREAS, the AHSC Program Application includes up to $5,000,000, for improvements to bicycle and pedestrian infrastructure in the City of Dublin and in the vicinity of the project; and 24 Attachment 1 Reso. No. XX-25, Item X.X, Adopted 05/06/2025 Page 2 of 3 WHEREAS, the SGC is authorized to approve funding allocations for the AHSC Program, subject to the terms and conditions of the NOFA, Program Guidelines, Application Package, and Standard Agreement. The Department is authorized to administer the approved funding allocations of the AHSC Program. NOW, THEREFORE, BE IT RESOLVED that the foregoing recitals are true and correct and made a part of this Resolution. BE IT FURTHER RESOLVED that the CityCouncil oftheCityof Dublindoes herebymake the following findings and determinations: 1. Applicant is hereby authorized and directed to apply for and submit to the Department the AHSC Program Application as detailed in the NOFA dated March 25, 2025, for Round 9 in a total amount not to exceed $50,000,000.00 of which up to $35,000,000.00 is requested as a loan for an Affordable Housing Development (AHD) (“AHSC Loan”) or Housing-Related Infrastructure (HRI), and $15,000,000.00 is requested for a grant for Sustainable Transportation Infrastructure (STI) or Program (PGM) activities (“AHSC Grant”) as defined in the AHSC Program Guidelines adopted by SGC on Feb. 24, 2025. If the application is approved, the Applicant is hereby authorized and directed to enter into,execute,anddeliveraStateofCaliforniaStandardAgreement(Standard Agreement) in a total amount not to exceed $50,000,000.00 ($35,000,000.00 for the AHSC Loan and $15,000,000.00 for the AHSC Grant), and any and all other documents required or deemed necessary or appropriate to secure the AHSC Program funds from the Department, and all amendments thereto (collectively, the “AHSC Documents”). 2. Applicant shall be subject to the terms and conditions as specified in the Standard Agreement. Funds are to be used for allowable capital asset project expenditures to be identified in Exhibit A of the Standard Agreement. The application in full is incorporated as part of the Standard Agreement. Any and all activities funded, information provided, and timelines represented in the application are enforceable through the Standard Agreement. Applicant hereby agrees to use the funds for eligible capital asset(s) in the manner presented in the application as approved by the Department and in accordance with the NOFA and Program Guidelines and Application Package. 3. The City Manager or designee is authorized to execute in the name of Applicant the AHSC Program Application Package and the AHSC Program Documents as required by the Department for participation in the AHSC Program. BE IT FURTHER RESOLVED that the City Council of the City of Dublin does hereby approve the Affordable Housing and Sustainable Communities Program Co-applicants’ Agreement, attached hereto as Exhibit A to this Resolution. BE IT FURTHER RESOLVED that the City Manager, or designee, is authorized to execute Exhibit A,and make any necessary, non-substantive changes to Exhibit A to carry out the intent of this Resolution. 25 Attachment 1 Reso. No. XX-25, Item X.X, Adopted 05/06/2025 Page 3 of 3 PASSED, APPROVED AND ADOPTED this 6th day of May 2025, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk 26 1 Attachment 2 Exhibit A to the Resolution AHSC CO-APPLICANTS’ AGREEMENT This AHSC Co-Applicants' Agreement (the “Agreement”) is made as of____, 2025, by and amongst the City of Dublin (the “City”) and The Related Companies of California, LLC, a California limited liability company (the “Developer”) with reference to the following facts and purposes: RECITALS A. Developer intends to develop that certain real property located in the City of Dublin (the “Property”) commonly referred to as (the “Project”). Developer has formed Amador Station Phase 1 Housing Partners, LP, a California limited partnership (Partnership), who will own and operate the Project. B. The State of California, the Strategic Growth Council (SGC) and the Department of Housing and Community Development (HCD) issued a Notice of Funding Availability dated March 25, 2025 (the AHSC NOFA), under the Affordable Housing and Sustainable Communities (AHSC) Program established under Division 44, Part 1 of the Public Resources Code, commencing with Section 75200. C. Developer and theCity, as co-applicants,jointly applied for funds under the AHSC NOFA to provide funding for the Project, as well as funding fortransportation- related public improvements to be constructed by the City. D. HCD awarded Developer and the City an aggregate amount of $up to $50,000,000 in AHSC Program Funds consisting of (A) $up to $35,000,000 for a permanent loan for the Project (AHSC Loan) and (B)$up to $50,000,00 for a grant (AHSC Grant), which shall be used for: (i)$up to $5,000,000 for construction of the City’s Sustainable Transportation Infrastructure improvements (STI Improvements). The AHSC Grant and the AHSC Loan are collectively referred to herein as the “AHSC Financing.” E. As co-applicants, theCityand Developer arerequired to enterinto certain agreements with HCD, including but not limited to standard agreements and a disbursement agreement (collectively, the AHSC Documents), where City and Developer will be jointly and severally liable for the full and timelyperformance of all obligations set forth in theAHSC Documents, including completion of the Project and the STI Improvements. NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, the parties hereto agree as follows: 27 2 AGREEMENT 1. Obligations 1.1.The City and Developer each acknowledge and agree that the inability or failure by either party to fully and timely complete each party’s respective improvements required by the AHSC Documents may affect the timing and right of the other party to receive disbursement of AHSC Financing due the other party notwithstanding the other party’s full and timely performance of its obligations. Developer has informed the City and the City acknowledges that if the City is not in compliance with the City’s obligations under the AHSC Documents, or the STI Improvements are not completed in accordance with the requirements and schedule under the AHSC Documents, the City may cause a default under AHSC Documents, and the documents evidencing the Partnership’s loans and financing for the Project (the “Partnership Financing Documents”). The City and Developer each acknowledge and agree that each, for itself, will exercise all commercially reasonable, good faith efforts to do all things at all times necessary to commence and complete each party’s own improvements in accordance with the AHSC Documents. The City and Developer agree to give the other party a written monthly status report on the improvements to be constructed and/or installed by each party, i.e., Developer will report on the Partnership’s progress on the Project, and the City will report on the progress of the STI Improvements. 1.2.If requested by either party, the other party will make available copies of approved design and construction documents, written public notices, and/or construction contracts. If either party anticipates not meeting the targeted construction and grant disbursement milestones as established in the AHSC Documents, that party will notify the other party in writing. If either party anticipates not being able to meet the required milestone dates as established in the AHSC Documents, that party will contact the other party as soon as is reasonably possible to discuss the reasons why the milestone dates may not be met and what actions the delayed party intends to take to meet the milestones or otherwise rectify the Project schedule in order to maintain good standing with the terms and conditions established in the AHSC Documents. 1.3.The City shall submit to HCD all draw requests for AHSC Grant funds for the costs associated with the STI Improvements, and apply such proceeds to pay invoices for such work. The City shall be solely responsible for the performance and completion of the STI Improvements in accordance with the terms of the AHSC Documents and the approved design and construction documents. The Partnership shall be solely responsible for the performance and completion of the Project in accordance with the terms of the AHSC Documents and the approved design and construction documents. 28 3 1.4.The City will provide Developer with copies of all requisitions for work related to the STI Improvements, the notice of completion, and other documents related to the STI Improvements that Developer may reasonably request. 1.5.Developer assumes responsibility for any monitoring or reporting of reductions in greenhouse gas emissions during the term of the Standard Grant Agreement, which is one of the AHSC Documents. The City will cooperate with Developer and assist in responding to any reporting requests to the extent feasible. 2. Term of Agreement The term of this Agreement shall coincide with the term of the AHSC Documents. 3. Developer Indemnification 3.1 Developer shall indemnify, defend (with counsel approved by City), and hold the City and its officers, directors, employees, agents, consultants (collectively, “City Indemnitees”) harmless from and against any and all claims, losses, costs, damages, liability and judgments, including reasonable attorneys’ fees (with counsel of City’s choice), incurred by or asserted against any City Indemnitees arising in connection with any breach by Developer, the Partnership, any affiliate of Developer, or any contractor, subcontractor, agent or employee of Developer, the Partnership or any affiliate of Developer of any term or condition of the AHSC Financing, including the AHSC Documents and any related documents executed by Developer, the Partnership, or any affiliate of Developer; provided, that Developer’s indemnification obligations under this Agreement shall not extend to claims resulting solely from the gross negligence or willful misconduct of City Indemnitees. It is further agreed that City does not and shall not waive any rights against Developer or the Partnership that it may have by reason of this indemnity and hold harmless agreement because of City’s acceptance, or Developer’s or the Partnership’s deposit with City of any of the insurance policies. 3.2 City shall indemnify, defend (with counsel approved by Developer), and hold the Developer, the Partnership and their respective officers, directors, employees, agents, consultants and partners (collectively, “Developer Indemnitees”) harmless from and against any and all claims, losses, costs, damages, liability and judgments, including reasonable attorneys’ fees (with counsel of Developer’s choice), incurred by or asserted against any Developer Indemnitees arising in connection with any breach by City, or any division, department, office, contractor, subcontractor, agent or employee of City of any term or condition of the AHSC Financing, including the AHSC Documents, and any related documents executed by City; provided, that City’s indemnification obligations under this Agreement shall not extend to claims resulting solely from the gross negligence or willful misconduct of Developer Indemnitees. It is further agreed that Developer does not and shall not waive any rights against City that it may have by reason of this indemnity and hold harmless agreement because of Developer’s acceptance, or City’s deposit with Developer of any of the insurance policies. 29 4 4. Cost Overruns Developer and/or the Partnership shall be responsible for paying all costs required to complete the Project irrespective of whether such costs exceed the AHSC Loan proceeds, and the City shall be responsible for paying all costs required to complete the STI Improvements irrespective of whether such costs exceed the AHSC Grant proceeds allocated to the STI Improvements. 5. General Provisions 5.1.Headings. The title and headings of the various Sections of thisAgreement are intended for means of reference and are not intended to place any construction on the provisions of this Agreement. 5.2.Invalidity. If any provision of this Agreement shall be invalid or unenforceable the remaining provisions shall not be affected thereby, and every provision ofthis Agreement shall be valid and enforceable to the fullest extent permitted by law. 5.3.Entire Agreement. The terms of this Agreement are intended by theparties hereto as a final expression of their agreement and may not be contradicted by evidence of any prior or contemporaneous agreement. No provision of this Agreement may be amended except by an agreement in writing signed by the parties hereto or their respective successors in interest. The parties hereto were represented by attorneys with regard to the drafting of this Agreement, and neither party shall be deemed to be the drafter of this Agreement. 5.4.Successors. This Agreement shall be binding upon and inure to thebenefit of the heirs, executors, administrators, successors and assigns of the parties hereto. 5.5.Governing Law; Venue. This Agreement shall be governed by the lawof the State of California. Venue for all litigation relative to the formation, interpretation and performance of this Agreement shall be in San Francisco. 5.6.Execution. This Agreement may be executed in multiple counterpart originals. 5.7.Relationship of Parties. Nothing contained in this Agreement shall be deemed or construed, either by the parties hereto or by any third party, to create therelationship of principal and agent or create any partnership, joint venture or other association between the City and Developer. 30 5 5.8.Notices. All notices, including deliveries of documentation (i.e., plans and contracts) for review and approval herein, shall be sent be a party hereto or its counsel by either personal delivery, a reputable overnight courier which keeps receipts of delivery (such as UPS, CalOvernight, or Federal Express), or through the facilities of the United States Post Office, postage prepaid, certified or registered mail, return receipt requested. Any such notice shall be effective upon delivery, if delivered by personal delivery or overnight courier, and 72 hoursafter dispatch, if mailed in accordance with the above. Notice to the respective parties shall be sent to the following addresses unless written notice of a change of address has been given pursuant hereto: To Developer: TheRelated Companies ofCalifornia 44 Montgomery Street, Suite 1310 San Francisco, CA 94104 Attn: Ann Silverberg To City: Colleen Tribby City Manager City of Dublin 100CivicPlaza Dublin, CA 94568 925-833-6000 5.9.Third Party Beneficiary. The Partnership is intended to be and shall be a third-party beneficiary of this Agreement, and Developer and the City shall not amend, modify or terminate the Agreement without the Partnership’s express written consent. 5.10.Compliance with Laws. Developer shall keep itself fully informed of the City’s Charter, codes, ordinances and duly adopted rules and regulations of the City and of all state, and federal laws in any manner affecting the performance of this Agreement, and must at all times comply with such local codes, ordinances, and regulations and all applicable laws as they may be amended from time to time. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] 31 6 IN WITNESS WHEREOF, the parties have executed this Agreement on or as of the date first above written. DEVELOPER: The Related Companies of California, LLC, a California limited liability company By: Ann Silverberg, Vice President CITY: City of Dublin By: Colleen Tribby City Manager 32