Title
Report regarding a resolution approving an Exclusive Negotiating Rights Agreement (“ENRA”) between the City of South San Francisco and Habitat for Humanity Greater San Francisco, Inc., for the property located at 905 Linden Avenue, and authorizing the City Manager or authorized designee to sign the agreement. (Pierce Abrahamson, Management Analyst II).
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RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a resolution approving an Exclusive Negotiating Rights Agreement (ENRA) between the City of South San Francisco, and Habitat for Humanity Greater San Francisco, Inc., for the property located at 905 Linden Avenue, and authorizing the City Manager or authorized designee to sign the agreement.
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BACKGROUND
In October 2025, the City issued a Request for Qualifications (RFQ) for a developer to produce affordable ownership housing at 905 Linden Ave (“the Property”). The Property (APN 012-101-100) is an approximately 0.27 acres parcel acquired by the City’s former Redevelopment Agency (RDA) in 1999 and transferred to the City in 2012 upon the RDA’s dissolution. The City’s Amended Long Range Property Management Plan (LRPMP), which outlines the City’s disposition strategy of former RDA properties, indicates the highest and best use of the property is to hold it until market conditions support residential redevelopment.
Given the site hosted a gas station prior to the RDA’s acquisition, the City applied for and received a grant from the California Department of Toxic Substances Control (DTSC) to pursue environmental remediation. In 2024, DTSC issued an environmental clearance letter certifying that the site requires no further remedial action beyond a potential soil management plan at the time of construction. Consequently, staff issued an RFQ in October 2025 to solicit an affordable developer to transform the currently vacant parcel into a townhome project of approximately 8-10 affordable ownership units.
Habitat for Humanity Greater San Francisco (HGSF) is the only developer who responded to the City’s October 2025 RFQ. After the City’s evaluation of HGSF’s RFQ submission, which chiefly includes a commitment to developing a townhome-style ownership project of family-sized units for households earning between 50% and 80% Area Median Income (AMI), staff and HGSF have negotiated an Exclusive Negotiating Rights Agreement (ENRA) for City Council’s consideration.
DISCUSSION
Given the City issued a Request for Qualifications (RFQ) in lieu of a Request for Proposals (RFP) to prioritize developer expertise and partnership in the molding of the 905 Linden project, there is no formal project proposal being considered at this time. Instead, the draft ENRA proposes a yearlong project negotiation and entitlement process with the intended outcome of a fully entitled project that Council may consider next year when approving or denying a property lease agreement. The proposed ENRA would require HGSF to submit a planning application within 90 days from the ENRA’s effective date. To ensure community input and quality design, the draft ENRA requires HGSF to hold at least one neighborhood meeting, solicit feedback from the City’s Design Review Board, and obtain formal approval from the City’s Planning Commission. Furthermore, the City will retain ownership of the Property through a ground lease model and will work with HGSF to conduct a formal project environmental review. The ENRA also would require HGSF to be responsible for all fees associated with submitting the Project application in accordance with the City’s Master Fee Schedule, including but not limited to City staff, consultant, and City Attorney time.
If Council approves the ENRA, HGSF will develop their proposal for a townhome-style condominium project with family-sized units affordable to low-income households. As HGSF works through the entitlement process, staff will work with HGSF to negotiate a ground lease agreement that is compliant with State RDA dissolution laws and the Surplus Land Act. Once the project is entitled by the Planning Commission, staff will bring forth the draft ground lease agreement during a regular City Council meeting for consideration.
If Council disapproves the ENRA, staff will solicit Council input on the preferred future direction for the Property. For example, the City could continue to hold the Property as vacant green space until a viable alternative developer emerges.
FISCAL IMPACT
As the ENRA includes neither a deposit nor financial compensation provisions, there is no impact on the General Fund. The ENRA does provide for HGSF to be responsible for fees associated with filing a planning application and City Attorney costs necessary to draft and negotiate the lease agreement, and both of these items are cost-recovery. Moreover, given the ENRA commits the City to offering a nominal rent price to HGSF should the ground lease agreement be approved by Council next year, there is no anticipated rental revenue.
RELATIONSHIP TO CITY COUNCIL PRIORITIES ACTION PLAN
The recommended action of this report directly supports a Major Focus Area of the City Council Priority Action Plan for 2026 - Housing and Supportive Services. A key strategy identified by Council within this focus area is to encourage a balanced housing supply, including rental, ownership, and workforce housing. By entering an ENRA with HGSF for this Property, the City is setting the stage for approximately 8 to 10 affordable ownership units to come online within a few years.
CONCLUSION
Staff recommends that the City Council adopt a resolution approving an Exclusive Negotiating Rights Agreement (ENRA) between the City of South San Francisco, and Habitat for Humanity Greater San Francisco, Inc., for the property located at 905 Linden Avenue, and authorizing the City Manager or authorized designee to sign the agreement.