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File #: 22-0836   
Type: Report to Council Status: Passed
Meeting Body: City Council
On agenda: 9/13/2022
Title: Authorize the Mayor to Sign a Letter of Support for the Affordable Housing Development at 245 W. Weddell Drive for the State of California's Infill Infrastructure Grant Program
Attachments: 1. Draft Letter of Support
REPORT TO COUNCIL

SUBJECT
Title
Authorize the Mayor to Sign a Letter of Support for the Affordable Housing Development at 245 W. Weddell Drive for the State of California's Infill Infrastructure Grant Program

Report
BACKGROUND
Orchard Gardens is a proposed 123-unit deed-restricted affordable housing development located at 245 W. Weddell Drive. The project is led by First Community Housing (FCH), a non-profit affordable housing developer based in San Jose. Currently, the project site contains 62 affordable rental units, which were acquired by a subsidiary of FCH in 1998. The proposed project will include the renovation of 30 existing units and construction of 93 new units to create a total of 123 deed-restricted rental units (32 existing units will be demolished to provide space for the new 93-unit building). Existing residents of the demolished units will be provided relocation assistance and right of first refusal to return to the new development upon completion. The completed project will provide affordable housing for lower-income households earning up to 60% of the Area Median Income; 45 units will be set aside for individuals and families experiencing homelessness (including 31 rapid rehousing units and 14 supportive housing units); and 15 units will serve adults with intellectual/developmental disabilities.

In February 2020, the City supported the project with a conditional award of $7.5 million in Housing Mitigation Funds (HMF) as part of the City's Notice of Funding Availability (NOFA) for affordable housing projects. Since then, FCH has completed due diligence items and sought additional financing, including securing approximately $13.8 million in combined County Measure A and No Place Like Home funding. On November 8, 2021, the Planning Commission approved a Special Development Permit for the project.

In July 2022, FCH applied for approximately $7.5 million from the Infill Infrastructure Grant (IIG) program, which is operated by the California Depa...

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