Title
Resolution conditionally committing $2,366,828 from the Commercial Linkage Fee Fund (Fund 823) to the Rotary Gardens affordable housing development project at 500 and 522 Linden Avenue and authorizing staff to negotiate a loan effectuating the commitment. (Mike Noce, Housing Manager)
body
WHEREAS, the local Rotary Club and its development partner, Beacon Development, referenced jointly as Rotary Plaza, Inc. have requested a total of $4.0 million in funding to support a two-phase affordable housing project at 500 and 522 Linden Avenue, known as Rotary Gardens; and
WHEREAS, the first phase includes an 80-unit senior affordable housing building, and the second phase will include a 64-unit family building; and
WHEREAS, Rotary and Beacon’s proposed project is a vital affordable housing project in the City’s development pipeline that will provide affordable housing to the community; and
WHEREAS, on December 13, 2023, the City also committed $556,789 earmarked for the 80-unit senior affordable housing building as a recipient of a five-year State entitlement grant known as the Permanent Local Housing Allocation (PLHA), which the project utilized the first two years of funds, known as the 2019 and 2020 PLHA allocations; and
WHEREAS, on December 13, 2023, the City committed $1,076,383 earmarked for the 64-unit family affordable housing building from the Low/Mod-Income Housing Asset Fund (Fund 241), which includes funds from the City’s former Redevelopment Agency and is regulated by State Senate Bill 341, and had an excess surplus that had to be encumbered by Fiscal Year 2024-2025; and
WHEREAS, the total combined funding provided to the Rotary Gardens project from Fund 241 and PLHA to date has been $1,633,173 and providing funding to affordable housing projects early in their predevelopment journey shows that the City is committed to the success of the project and provides early low-cost capital that the development team can leverage to secure additional funding for the project; and
WHEREAS, the City wishes to commit $2,366,828 from the Commercial Linkage Fee Fund (Fund 823) to be used for both phases of the project and bring the total funding commitment to $4,000,000 for the Rotary Gardens project; and
WHEREAS, the remaining commitment of $2,366,828 towards the project will be made once the following conditions have been fulfilled:
1. Local land use and entitlement approvals;
2. Documentation and award of County AHF Funding; and
3. City of South San Francisco’s receipt of City linkage fees.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco does hereby commit these funds, subject to the aforementioned conditions, to Rotary Plaza, Inc. for the affordable housing project, Rotary Gardens, at 500 and 522 Linden Avenue, with $2,366,828 from the Commercial Linkage Fee Fund (Fund 823).
BE IT FURTHER RESOLVED, that the City Council authorizes staff to negotiate loan agreements with Rotary and Beacon before returning to Council for final approval and formal appropriation of the funds.
* * * * *