REPORT TO COUNCIL
SUBJECT
Title
Consider Charities Housing Development Corporation Proposal for $403,000 in Below Market Rate In-Lieu Fee (BIF) Funds for Rehabilitation of Stoney Pine Villa Apartments at 267 W. California Avenue and Approve Budget Modification No. 9 to Appropriate Funding from the Below Market Rate Housing Fund
Report
BACKGROUND
On March 5, 2015, staff issued a Request for Proposals (RFP) for affordable housing projects to be funded with the City's Housing Mitigation Funds (HMF). Nine million in HMF and $1 million in Below Market Rate In-Lieu Fee Funds (BIF) were made available for new affordable housing (capital project) proposals through that RFP. One proposal was received in late 2015 and Council awarded $6 million in HMF to First Community Housing for the proposed redevelopment of Orchard Gardens, located at 245 Weddell Drive (RTC No. 16-0302). The balance of four million in HMF and BIF funding set aside for that RFP remains available. In June 2016, staff received another proposal, in response to the March 2015 RFP, from Charities Housing Development Corporation (Charities) for rehabilitation of Stoney Pine Villa Apartments (Stoney Pine).
Charities is a non-profit affordable housing developer based in San Jose which has developed more than 1,100 housing units at 18 sites throughout Santa Clara County in the past 22 years. Charities has developed two projects to date in Sunnyvale, both with financing from various City Housing funds: Stoney Pine, in 2001, and Parkside Studios, completed in July 2015. Charities also owns two group homes for seniors on Klee Court and Wolfe Road, which were acquired in 2014 from another non-profit agency. Charities provides property management and resident services at all of its Sunnyvale properties.
In 2014 Charities applied for and was awarded $201,000 in CDBG Revolving Loan funds by the City to complete a limited rehabilitation of Stoney Pine. Charities did not begin the project as soon as initially pla...
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