MEMORANDUM TO HOUSING AND HUMAN SERVICES COMMISSION
SUBJECT
Title
Consider Proposal for Housing Mitigation Funds
Report
Background
The City issued a Request for Proposals (RFP) in February 2014 for new affordable housing projects proposed for funding with the City's Housing Mitigation Fund. A total of $6 million was made available through that RFP. Two proposals were received in early 2014 in response to the RFP: one was recommended by the Commission for funding and one was rescinded by the applicant in order to allow more time for property negotiations which ultimately were not successful. In June 2014, as part of the Projects Budget, Council approved an award of $1 million to the proposal recommended for funding by the Commission, which was for the rehabilitation of Morse Court, a 35-unit affordable rental project in Sunnyvale owned by MidPen Housing.
Since an additional $5 million remained available in that RFP following the initial application deadline, the Commission recommended extending the deadline on a continuous basis until all funds made available through that RFP were awarded. Since that time, a number of prospective applicants have expressed intent to submit proposals, but no proposals were submitted until this month, when staff received a new proposal from MidPen Housing, summarized below. Pertinent sections of the proposal are provided in Attachment 1.
Proposal Description
The proposal consists of a request for $5 million for development of a new affordable rental project of approximately sixty apartments. The project site is an industrial parcel of 1.35 acres located at 460 Persian Drive in north Sunnyvale. The number of units may range from 55 to 65 units, with the exact number to be determined during the environmental review and planning application process. For purposes of the funding application review and evaluation process, staff will use the 60-unit figure. The units will be affordable to lower-income households earning...
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