REPORT TO COUNCIL
SUBJECT
Title
Authorize the Mayor to Sign a Letter of Support for the Affordable Housing Development at 1178 Sonora Court for the State of California's Infill Infrastructure Grant Program
Report
BACKGROUND
1178 Sonora Court is a proposed 176-unit affordable housing development located on City-owned property. The project is led by MidPen Housing (MidPen), a non-profit affordable housing developer based in Foster City. The project will include the new construction of 176 deed-restricted rental units, which will provide affordable housing for lower-income households earning up to 70% of the Area Median Income. 1178 Sonora Court will include 45 units of permanent supportive housing, which will be set aside to serve individuals experiencing homelessness. Due to the site's location adjacent to the Lawrence Caltrain Station, this transit-oriented development project will help connect lower-income households with employment opportunities throughout the region and promote sustainable transportation.
In February 2020, the City supported this project with a conditional award of $14 million in Housing Mitigation Funds (HMF) as part of the City's Notice of Funding Availability (NOFA) for affordable housing projects. Following the NOFA award, the City and MidPen entered into a Disposition and Development Agreement (DDA) for the project. Pursuant to the DDA, $13.5 million of the NOFA award was used for the City to purchase the 1178 Sonora Court property from MidPen. The City now leases the property to MidPen for the purpose of this project. MidPen has completed due diligence items and sought additional financing, including securing $11.2 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, MidPen applied for $7.5 million from the Infill Infrastructure Grant (IIG) program, which is operated by the California Department of Housi...
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