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Resolution of the City Council of the City of South San Francisco approving the rescission of a Letter of Intent and Budget Amendment Number 25.055 to remove an associated budget designation to fund a now canceled affordable rental housing project at 201 Baden Avenue with Local Housing Trust Fund funds.
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WHEREAS, the California Department of Housing and Community Development (“HCD”) is authorized to provide up to $57 million under the Local Housing Trust Fund (“LHTF”) Program from the Veterans and Affordable Housing Bond Act of 2018 (Proposition 1) (as described in Health and Safety Code section 50842.2 et seq. (Chapter 365, Statutes of 2017 (SB 3)) (“Program”); and
WHEREAS, HCD issued a Notice of Funding Availability (“NOFA”) dated May 3, 2021, under the LHTF Program; and
WHEREAS, the City of South San Francisco (“City”) on July 28, 2021, issued a Letter of Intent (Exhibit A) to Eden Housing, an affordable housing developer, describing a $1,890,000 funding commitment for the development of a senior affordable housing project (the “Project”) at 201 Baden Avenue using LHTF funds, contingent upon the LHTF grant funds being secured and a final City Council authorization to use LHTF funds for the Project; and
WHEREAS, the City of South San Francisco (the “City” or “Applicant”) executed a standard agreement with HCD on August 30, 2022, approving a $2,362,500 award to the City to administer one or more eligible activities using LHTF Funds; and
WHEREAS, since Project inception in November 2021, Eden has not advanced the Project beyond submitting a project pre-application with the City’s Planning Division, and consequently, has not yet requested City Council to formally authorize use of LHTF Funds for the Project; and
WHEREAS, on September 17, 2024, Eden Housing sent a letter to the Director of the Economic and Community Development Department requesting that the City re-convey the formerly City-owned 201 Baden Avenue property due to a disinterest in further pursuing the Project; and
WHEREAS, the City will execute a Third Amendment to the Purchase and Sale Agreement with Eden Housing to pursue such re-conveyance, effectively canceling the Project; and
WHEREAS, the City will commit to using LHTF Program Funds towards another eligible activity in consultation with HCD; and
WHEREAS, Fund 823 has a $1,025,000 budget designation intended for a predevelopment loan that was never requested from Eden Housing for the now canceled Project.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco does hereby approve the rescission of the July 28, 2021, Letter of Intent to award $1,890,000 in Local Housing Trust Fund funds to Eden Housing for the 201 Baden Avenue senior affordable housing project.
NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of South San Francisco does hereby approve Budget Amendment Number 25.055 to remove the $1,025,000 budget designation in Fund 823 previously designated for the 201 Baden Avenue senior affordable housing project.
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Exhibit A: City Intent to Fund Letter