REPORT TO COUNCIL
SUBJECT
Title
Award Conditional Funding for $29,533,000 in Housing Mitigation Funds and Below Market Rate In-Lieu Funds for the Acquisition, Pre-development, and/or Development of Three Affordable Housing Developments
Report
SUMMARY OF COMMISSION ACTION
The Housing and Human Services Commission (HHSC) considered this item on July 24, 2023 (see Attachment 1, Report to Housing and Human Services Commission No. 24-0806). The HHSC voted to approve Alternative 1 to Recommend that the City Council award conditional funding commitments for $29,533,000 in Housing Mitigation Funds and Below Market Rate In-lieu Funds for the acquisition, pre-development, and/or development of the projects, as presented in Attachment 3 to the report. The vote was 6-0, with Commissioner Riviere absent. Minutes of the HHSC meeting are provided in Attachment 4.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
ALTERNATIVES
1. Award conditional funding commitments for $29,533,000 in Housing Mitigation Funds and Below Market Rate In-lieu Funds for the acquisition, pre-development, and/or development of the projects presented in Attachment 3 to the report.
2. Award conditional funding commitments for $32,500,000 in Housing Mitigation Funds and Below Market Rate In-lieu Funds for the acquisition, pre-development, and/or development of the projects presented in Attachment 3 to the report.
3. Direct staff to return with a Budget Modification with an intention to award conditional funding commitments for $34,000,000 in Housing Mitigation Funds and Below Market Rate In-lieu Funds for the acquisition, pre-development, and/or development of the projects, as requested by the applicants and presented in Attachment 3 to the report.
4. Other action regarding an award of conditional funding commitments in Housing Mitigation Funds and Below Market Rate In-lieu Funds for the acquisition, pre-development, and/or development of the projects presented in Attachment 3 to the report.
5. Do not approve any conditional funding commitments.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Award conditional funding commitments for $29,533,000 in Housing Mitigation Funds and Below Market Rate In-lieu Funds for the acquisition, pre-development, and/or development of the projects, as presented in Attachment 3 to the report.
JUSTIFICATION FOR RECOMMENDATION
Alternative 1 is the scoring committee’s recommendation and ensures that funding is available to meet an important timeline for the acquisition of 1171 Sonora, while supporting predevelopment expenses for both 1171 Sonora and 295 S. Mathilda and supporting construction activities for 352 E. Java. The recommended funding amount is an increase to the total funding advertised in the NOFA exercising the option that the City Council could increase the total funding to be awarded. Staff recommends not awarding the full amount in the FY 2024/25 budget ($32.5 million) and reserving approximately $3 million should an urgent situation surface prior to FY 2026/27. If the City Council is interested in conditionally awarding the full amount requested ($34 million), a Budget Modification would be required to appropriate the additional funds.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $250 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
A check or “Y” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
_Y Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract
___ Labor or personal employment contract
___ General policy and legislative actions
Staff
Prepared by: Ryan Dyson, Housing Specialist
Reviewed by: Jenny Carloni, Acting Director of Community Development
Reviewed by: Dennis Jaw, Interim Director of Finance
Reviewed by: Connie Verceles, Deputy City Manager
Approved by: Tim Kirby, Interim City Manager
ATTACHMENTS
1. Report to Housing and Human Services Commission [24-0806, July 24, 2024] (without attachments)
2. Sample NOFA Scoring Sheet
3. Funding Alternatives
Additional Attachments for Report to Council
4. Excerpt of Draft Minutes of the Housing and Human Services Commission Meeting of July 24, 2024