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HomeMy WebLinkAboutItem 5.5 Affordable Housing and Sustainable Communities Program Application and Associated Agreement Agenda Item 5.5 STAFF REPORT CITY COUNCIL Page 1 of 6 DATE: April 6, 2026 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 Program grant. 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) as well as LAVTA operations, and the purchase of one traction power substation and switching station for Bay Area Rapid Transit. 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: The total grant funding request is for $50,000,000 to fund a portion of the Amador Station Affordable Housing Project, associated infrastructure procurement and improvements, and transit program elements. If awarded, the City will use a portion of the grant funds for design, construction, project management, and grant administration of pedestrian and bicycle infrastructure improvements within public streets. Funding from the Affordable Housing and Sustainable Communities Program grant is provided by the California Greenhouse Gas Reduction Fund. 96 Page 2 of 6 DESCRIPTION: Background On August 10, 2021, the Planning Commission approved a Site Development Review Permit for the 300-unit Amador Station Affordable Housing Project by BRIDGE Dublin, LLC, on an undeveloped site owned by the San Francisco Bay Area Rapid Transit District (BART) adjacent to the West Dublin/Pleasanton BART Station . On September 21, 2021, the City Council approved a Community Benefit Program Agreement and Affordable Housing Assistance Agreement for the project. BRIDGE Dublin, LLC, has since partnered with The Related Companies of California, LLC, and on February 21, 2023, the City Council approved amendments to the project agreements to reflect this partnership. The project will be built in four phases; the developer has submitted applications for Building Permits for Phase 1, which includes 86 units, and Phase 2, which includes 78 units. In previous years, the City Council authorized applications to the Affordable Housing and Sustainable Communities (AHSC) Program; however, those applications were not selected for grant funding due primarily to program-level constraints rather than issues with the project itself. The program was heavily oversubscribed, and statutory set -asides required a portion of funds to go to projects in Disadvantaged Communities. As a result, this project , as well as other BART-partner projects, was not selected. For this grant cycle, the Project remains competitive due to its transit-oriented location, strong agency partnerships, and advanced stage of project readiness. In addition, the Project scope was expanded to increase greenhouse gas reductions, which will better position the Pr oject for a grant award. Project Description The Amador Station Affordable Housing Project is located on a vacant 3.6 -acre site at 6501 Golden Gate Drive (Figure 1). The site is bounded by I -580 to the south, Avalon West apartments to the west, Connolly Station apartments to the north, and Golden Gate Drive to the east. The property lies within the Transit Oriented District of the Downtown Dublin Specific Plan and is being developed by The Related Companies in partnership with Affordable Housing Access, a non-profit agency. 97 Page 3 of 6 Figure 1: Location Map Grant Funding If selected, the AHSC Program would provide funding for the Amador Station Affordable Housing Project, including bicycle and pedestrian improvements, transit-related infrastructure, and program elements. The partnership with the City strengthens the competitiveness of the grant application. The Related Companies will enter into agreement with BART to purchase a traction power substation and switching station, and with LAVTA to provide infrastructure and operating funds. These improvements support increased transit reliability and ridership a nd reduce greenhouse gas emissions. 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. SUBJECT Avalon PROPERTY Connolly Station 98 Page 4 of 6 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. Table 1 – Requested Funding Amount and Allocations AHSC Loan Type Maximum Funding Amount Per Program Guidelines Anticipated Funding Request Description Funds Recipient Affordable Housing Development (AHD) or Housing related infrastructure $35,000,000 $35,000,000 Phase 1A – Amador Station The Related Companies / Affordable Housing Access Sustainable Transportation Infrastructure (STI) $15,000,000 $5,000,000 BART Substation & Switch Station BART via The Related Companies / Affordable Housing Access $5,000,000 Bicycle and Pedestrian Improvements Project City of Dublin $3,350,000 Solar Panels on Dublin BART Parking Garage BART via The Related Companies / Affordable Housing Access $500,000 New Sidewalk – On AHD Site Pedestrian Improvements The Related Companies / Affordable Housing Access $200,000 Bus Shelters LAVTA via The Related Companies / Affordable Housing Access 99 Page 5 of 6 $200,000 Transit Signal Priority (TSP) LAVTA via The Related Companies / Affordable Housing Access Program Costs (PGM) $300,000* Transit Passes* The Related Companies / Affordable Housing Access $450,000 Program Component (TBD) The Related Companies / Affordable Housing Access * Costs incurred for required transit passes do not contribute to the $600,000 Program Costs cap. City Improvements As shown in the table above, the AHSC Program application includes a funding request of $5,000,000 for pedestrian and bicycle infrastructure improvements within the City public street right-of-way. These improvements include the reconstruction of existing sidewalks to improve accessibility and meet current standards on: 1) Regional Street from St. Patrick Way to Dublin Boulevard; and 2) Dublin Boulevard from Regional Street to Golden Gate Drive. Additionally, the grant application requests funding for bicycle improvements that include: 1) installing Class II bicycle lanes on Sierra Court north of Dublin Boulevard and on Sierra Lane from Sierra Court to Dougherty Road; and 2) 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. Lastly, the AHSC Program grant would fund five new bus shelters in Dublin, as well as 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 if awarded the grant. The Agreement defines the terms and responsibilities for the City and Related Companies to implement and deliver their respective improvements to comply with the AHSC Program requirements. The AHSC Program grant application deadline is May 4, 2026. Announcement of AHSC Program award recipients is anticipated to be in December 2026. 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 100 Page 6 of 6 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 101 Attachment 1 Reso. No. XX-26, Item X.X, Adopted XX/XX/2026 Page 1 of 3 RESOLUTION NO. XX – 26 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 Affordable Housing Project (Project) 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 4, 2026 (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 to partner on the AHSC Program grant application 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 grant funds and submit the application released by the Department for the AHSC Program; and WHEREAS, The Related Companies of California, LLC, and the City desire to enter into an Affordable Housing and Sustainable Communities Program Co-Applicants’ Agreement (Agreement), attached hereto as Exhibit A to this Resolution, 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; and WHEREAS, the AHSC Program Application includes up to $5,000,000, for bicycle and pedestrian infrastructure improvements in the City; and 102 Reso. No. XX-26, Item X.X, Adopted XX/XX/2026 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, AHSC Program Guidelines, Application, and Agreement and 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 City Council of the City of Dublin does hereby make 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 4, 2026, for Round 10 in a total amount not to exceed $50,000,000 of which up to $35,000,000 is requested as a loan for an Affordable Housing Development (AHD) (“AHSC Loan”) or Housing-Related Infrastructure, and $15,000,000 is requested for a grant for Sustainable Transportation Infrastructure or Program activities (“AHSC Grant”) as defined in the AHSC Program Guidelines adopted by SGC on Feb. 25, 2026. If the application is approved, the Applicant is hereby authorized and directed to enter into, execute, and deliver an Agreement in a total amount not to exceed $50,000,000 ($35,000,000 for the AHSC Loan and $15,000,000 for the AHSC Grant), and any and all other documents required or deemed necessary or appropriate to secure the AHSC Program grant 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 Agreement. Grant funds are to be used for allowable capital asset project expenditures to be identified in Exhibit A of the Agreement. The Application in full is incorporated as part of the Agreement. Any and all activities funded, information provided, and timelines represented in the Application are enforceable through the 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 AHSC Program Guidelines and Application. 3. The City Manager or designee is authorized to execute in the name of Applicant the AHSC Program Application and the AHSC Program Documents as required by the Department for participation in the AHSC Program. 103 Reso. No. XX-26, Item X.X, Adopted XX/XX/2026 Page 3 of 3 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 the Agreement, attached here to Exhibit A, and make any necessary, non-substantive changes to Exhibit A carry out the intent of this Resolution. PASSED, APPROVED AND ADOPTED BY the City Council of the City of Dublin, on this 7th day of April 2026 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk 104 Attachment 2 Exhibit A to the Resolution 1 AHSC CO-APPLICANTS’ AGREEMENT This AHSC Co-Applicants' Agreement (the “Agreement”) is made as of , 2026, 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 4, 2026 (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 the City, as co-applicants, jointly applied for funds under the AHSC NOFA to provide funding for the Project, as well as funding for transportation- 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, the City and Developer are required to enter into 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 timely performance of all obligations set forth in the AHSC 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: 105 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 d isbursement 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. 106 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 a gainst 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 Fi nancing, 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. 107 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 this Agreement 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 of this 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 the parties 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 the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto. 5.5. Governing Law; Venue. This Agreement shall be governed by the law of 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 the relationship of principal and agent or create any partnership, joint venture or other association between the City and Developer. 108 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 hours after 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: The Related Companies of California 44 Montgomery Street, Suite 1310 San Francisco, CA 94104 Attn: Ann Silverberg To City: Colleen Tribby City Manager City of Dublin 100 Civic Plaza 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] 109 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 110