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Agenda Item
S8 24-0040 Subject: Funding For New Construction Affordable Housing Pipeline And Modifying Resolutions For State Funding
From: Housing And Community Development Department
Recommendation: Adopt The Following Pieces Of Legislation:
1) A Resolution (1) Allocating Measure U Housing Bond Funds In A Total Amount Not To Exceed $22,000,000 To Fund New Construction Of Multifamily Rental Affordable Housing Projects, (2) Authorizing The City Administrator To Make Development Loans Under The New Construction Of Multifamily Rental Affordable Housing Program Without Returning To Council, Contingent On Funding Availability, And (3) Modifying Allocations Of Prior California Department Of Housing & Community Development's (CA HCD) Local Housing Trust Fund Awards To Comply With State Program Requirements
My name is James Perez, and I am with the East Bay Asian Local Development Corporation – EBALDC.
EBALDC wants to share our support to City staff and the council for their continued efforts to get these Measure U affordable housing infrastructure funds into the community
The City is exceptionally-positioned to move affordable housing developments towards a start of construction. Since the passage of Measure U in November 2022, staff have proactively read and reacted to changing conditions in affordable housing funding availability at the State and Federal levels.
The proposed amendments will be pivotal in providing flexibility and predictability in seeing these developments through to fruition.
We also look forward to future discussions on the development of labor standards, and encourage all parties to be engaged in order to not delay the future deployment of additional Measure U funds.
We appreciate your continued collaboration for meeting the affordable housing needs of the City of Oakland.
My name is Sarah Allen. I am a Project Developer with Eden Housing working on the Dr. Kenneth Anderson Senior Apartments located in the Clinton neighborhood at 1003 E 15th St.
Eden is supportive of the recommendation to provide authority to HCD staff to allocate Measure U funds using the outlined and established criteria in the staff report for new construction affordable housing projects within the existing pipeline.
Eden would also like to emphasize our commitment to diversity equity and inclusion in our partnerships, programs, and supply chain - acknowledging that those opportunities can be a pathway to economic success for people who have encountered the most significant barriers. We would ask the Council to ensure DEI continues to be a strong consideration when making adjustments to processes and programs for affordable housing development.
Esteemed members of the City of Oakland City Council,
My name is Polo Munoz, and I serve as a Director of Housing Development at MidPen Housing, a nonprofit organization dedicated to providing high-quality affordable housing in the greater Bay Area. We have a proven track record, having developed over 100 communities and 8,500 homes for low-income families, seniors, and individuals with special needs, including 465 affordable units at Brooklyn Basin in Oakland.
I commend the City's commitment to building affordable housing and like many of my colleagues, I too would like to express my support for HCD's request for authority and flexibility in funding pipeline projects aligned with established criteria for Measure U bond proceeds.
Furthermore, I endorse the forward-commitment of funds to projects in anticipation of Measure U funds, which will enhance their competitiveness for other funding sources, such as tax credits and State housing funds.
I appreciate the City Council's dedication to inclusivity in the development of labor standards policies, trusting that this process will ensure fair standards, equitable contracting and hiring, and cost considerations.
However, I urge that the development of new labor standards not delay the issuance of future NOFAs, as any delays could impede efforts to construct much-needed affordable housing in our community.
Thank you for your attention to these critical matters.
My name is Tim Dunn. I am the Associate Director of Real Estate Development in the San Francisco office of Mercy Housing. Regarding the proposed amendment to this measure, Mercy appreciates that it allows HCD the flexibility to make immediate awards and also bring together a big tent of nonprofit developers, trades, and small minority-owned businesses to determine labor standards that meet the needs of each constituency.
The new amendment still poses a challenge for a senior housing development that we are developing at 2125 Telegraph and for which we have received an extremely competitive award from HUD that includes capital and on-going operating subsidies so that rents can be limited to 1/3 of the income of the property's future extremely low-income tenants. Funding for the development also includes a $10 million philanthropic donation and about $40 million of federal low-income housing tax credits. Due to a nuance of the tax credit program, if the project is not able to start construction by December 2025, the project will lose about $9 million of tax credit equity and become financially infeasible. Unfortunately, we will not meet this deadline if the next HCD funding NOFA is delayed beyond the 2024 calendar year.
Our request is that the amendment explicitly not interfere with a 2024 HCD NOFA. Either the legislation should allow the NOFA to be issued prior to the finalization of new standards or should set a timeline that facilitates the Fall 2024 NOFA.
Good afternoon, my name is Avni Desai and I am the Policy Director at Christian Church Homes, with 1000 units of affordable housing for lower income older adults in Oakland. We support HCD’s request to have the authority and flexibility to fund pipeline projects that meet previously approved criteria established for the most recent notice of funding availability for Measure U bond proceeds. We support the City forward-committing funds to projects in the anticipation of Measure U funds becoming available as this will support projects’ competitiveness for other funding sources. The early commitment of those funds is what makes City-funded projects compete so well to leverage tax credits and State housing funds. We applaud the City Council’s commitment in the amended resolution to bring together all stakeholders to work together on an inclusive and exhaustive labor standards policy. EBHO, which CCH is a member of, has long advocated that the City should take the lead in bringing together all the diverse interests to formulate a set of City requirements. We trust that this process will balance fair labor standards, equitable contracting and hiring, and cost considerations. However, the development of new labor standards should not delay issuance of future NOFAs. We are concerned that delaying future funding of affordable housing could jeopardize the City’s Housing Element compliance status and its Pro-Housing designation. Thank you for your consideration.
My name is James Perez, and I am with the East Bay Asian Local Development Corporation – EBALDC.
EBALDC wants to share our support to City staff and the council for their continued efforts to get these Measure U affordable housing infrastructure funds into the community
The City is exceptionally-positioned to move affordable housing developments towards a start of construction. Since the passage of Measure U in November 2022, staff have proactively read and reacted to changing conditions in affordable housing funding availability at the State and Federal levels.
The proposed amendments will be pivotal in providing flexibility and predictability in seeing these developments through to fruition.
We also look forward to future discussions on the development of labor standards, and encourage all parties to be engaged in order to not delay the future deployment of additional Measure U funds.
We appreciate your continued collaboration for meeting the affordable housing needs of the City of Oakland.
My name is Sarah Allen. I am a Project Developer with Eden Housing working on the Dr. Kenneth Anderson Senior Apartments located in the Clinton neighborhood at 1003 E 15th St.
Eden is supportive of the recommendation to provide authority to HCD staff to allocate Measure U funds using the outlined and established criteria in the staff report for new construction affordable housing projects within the existing pipeline.
Eden would also like to emphasize our commitment to diversity equity and inclusion in our partnerships, programs, and supply chain - acknowledging that those opportunities can be a pathway to economic success for people who have encountered the most significant barriers. We would ask the Council to ensure DEI continues to be a strong consideration when making adjustments to processes and programs for affordable housing development.
Esteemed members of the City of Oakland City Council,
My name is Polo Munoz, and I serve as a Director of Housing Development at MidPen Housing, a nonprofit organization dedicated to providing high-quality affordable housing in the greater Bay Area. We have a proven track record, having developed over 100 communities and 8,500 homes for low-income families, seniors, and individuals with special needs, including 465 affordable units at Brooklyn Basin in Oakland.
I commend the City's commitment to building affordable housing and like many of my colleagues, I too would like to express my support for HCD's request for authority and flexibility in funding pipeline projects aligned with established criteria for Measure U bond proceeds.
Furthermore, I endorse the forward-commitment of funds to projects in anticipation of Measure U funds, which will enhance their competitiveness for other funding sources, such as tax credits and State housing funds.
I appreciate the City Council's dedication to inclusivity in the development of labor standards policies, trusting that this process will ensure fair standards, equitable contracting and hiring, and cost considerations.
However, I urge that the development of new labor standards not delay the issuance of future NOFAs, as any delays could impede efforts to construct much-needed affordable housing in our community.
Thank you for your attention to these critical matters.
My name is Tim Dunn. I am the Associate Director of Real Estate Development in the San Francisco office of Mercy Housing. Regarding the proposed amendment to this measure, Mercy appreciates that it allows HCD the flexibility to make immediate awards and also bring together a big tent of nonprofit developers, trades, and small minority-owned businesses to determine labor standards that meet the needs of each constituency.
The new amendment still poses a challenge for a senior housing development that we are developing at 2125 Telegraph and for which we have received an extremely competitive award from HUD that includes capital and on-going operating subsidies so that rents can be limited to 1/3 of the income of the property's future extremely low-income tenants. Funding for the development also includes a $10 million philanthropic donation and about $40 million of federal low-income housing tax credits. Due to a nuance of the tax credit program, if the project is not able to start construction by December 2025, the project will lose about $9 million of tax credit equity and become financially infeasible. Unfortunately, we will not meet this deadline if the next HCD funding NOFA is delayed beyond the 2024 calendar year.
Our request is that the amendment explicitly not interfere with a 2024 HCD NOFA. Either the legislation should allow the NOFA to be issued prior to the finalization of new standards or should set a timeline that facilitates the Fall 2024 NOFA.
Good afternoon, my name is Avni Desai and I am the Policy Director at Christian Church Homes, with 1000 units of affordable housing for lower income older adults in Oakland. We support HCD’s request to have the authority and flexibility to fund pipeline projects that meet previously approved criteria established for the most recent notice of funding availability for Measure U bond proceeds. We support the City forward-committing funds to projects in the anticipation of Measure U funds becoming available as this will support projects’ competitiveness for other funding sources. The early commitment of those funds is what makes City-funded projects compete so well to leverage tax credits and State housing funds. We applaud the City Council’s commitment in the amended resolution to bring together all stakeholders to work together on an inclusive and exhaustive labor standards policy. EBHO, which CCH is a member of, has long advocated that the City should take the lead in bringing together all the diverse interests to formulate a set of City requirements. We trust that this process will balance fair labor standards, equitable contracting and hiring, and cost considerations. However, the development of new labor standards should not delay issuance of future NOFAs. We are concerned that delaying future funding of affordable housing could jeopardize the City’s Housing Element compliance status and its Pro-Housing designation. Thank you for your consideration.