Title
Report regarding a resolution affirming the City’s support for BRIDGE Housing Corporation’s application to the Affordable Housing Sustainable Communities (AHSC) Grant program and authorizing the City Manager to execute an AHSC Implementation and Cooperation Agreement with BRIDGE Housing Corporation and an AHSC Scope of Work for an Anti-Displacement Strategy. (Nell Selander, Economic & Community Development Director)
label
RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a resolution:
1) Affirming the City’s support for BRIDGE Housing Corporation’s (BRIDGE) application to the Affordable Housing Sustainable Communities (AHSC) Grant program for the 1051 Mission Affordable (PUC Project) project requesting up to $50 million of AHSC funds for affordable housing development and transportation infrastructure improvements; and
2) Authorizing the City Manager to execute an AHSC Implementation and Cooperation Agreement with BRIDGE as required for reimbursement for the City’s Sustainable Transit Infrastructure (STI) and Transit-Related Amenities (TRA) projects; and
3) Authorizing the City Manager to execute an Affordable Housing Sustainable Communities (AHSC) Scope of Work Document as required for the application’s Anti-Displacement Strategy (AD).
Body
BACKGROUND/DISCUSSION
The 158 affordable units being developed by BRIDGE as part of the PUC Project, known as 1051 Mission Affordable for the AHSC grant application, are anticipated to be under construction in mid-2025 contingent upon receipt of an AHSC award in August or September 2024 and California Tax Credit Allocation Committee (TCAC) and California Debt Limit Allocation Committee (CDLAC) award in December 2024. Key to assembling the funds to build this much-needed affordable housing is securing two major State of California Housing and Community Development Department (HCD) grants: the Infill Infrastructure Grant (IIG) and AHSC. The project was awarded $28.8 million in IIG funds in February 2023, and the AHSC application is the subject of this staff report. Following award of HCD funds, BRIDGE will apply for low-income housing tax credits (TCAC and CDLAC) to complete the project’s financing.
The AHSC state grant program is a combined affordable housing and sustainable transportation infrastructure funding program that aims to support affordable housing units that connect with greenhouse gas-reducing transportation options for residents. The AHSC program uses state Cap-and-Trade funding from greenhouse gas-generating uses throughout the state to fund these pollution-reducing objectives. Applications for Round 8 of the AHSC program are due on March 19, 2024, with an award announcement anticipated in August or September 2024.
AHSC-Funded City Transportation Improvements
The City’s Planning and Engineering Divisions have been working with BRIDGE and their technical consultant to identify sustainable transportation infrastructure improvements for which to request AHSC funding. Such improvements must be within one half mile of the project site and to maximize competitiveness should improve the safety and convenience of bicyclists and transit riders in the City and support the community’s existing plans for multi-modal improvements. After careful analysis of existing unfunded projects and in accordance with the AHSC criteria, City staff has identified the following Sustainable Transportation Infrastructure (STI) and Transportation-Related Amenities (TRA) in BRIDGE’s application for AHSC funding (see Attachment 1 for a map of the identified improvements).
City Sustainable Transportation Infrastructure (STI)
If awarded, the AHSC funds - received through an Implementation and Cooperation Agreement with BRIDGE - will fund $334,500 for the installation of approximately 1.8 lane miles of Class IV bike lane along Westborough Boulevard between Camaritas Avenue and Junipero Serra Boulevard, approximately 0.40 lane miles of Class IV bike lane along Junipero Serra Boulevard between Westborough Boulevard and Arroyo Drive and Transit Signal Priority upgrade on Mission Road between Evergreen and Chestnut Avenue.
Completion of this STI improvement requires obtaining an extension to a current encroachment permit from the County of San Mateo to complete the work in their right of way. Upon the City’s request of County staff for the necessary encroachment permit in 2023, the County responded that to obtain the encroachment permit, the City will need to agree to sweep and maintain the bike lane once installed. This new protected bike lane, as well as all other Class I and IV separated or protected bike lanes, cannot be swept with a typical EV sweeper. Last year, staff requested, and Council approved, the budget to acquire an EV sub-compact sweeper, so the City now has the ability to fulfill this County request.
Additionally, if awarded, the AHSC funds will fund $4,402,000 for the SSF Shuttle program, enabling the City to fund a scope of improvements to the SSF Shuttle program that includes expanding available shuttle routes, purchasing zero emission vehicle shuttles, upgrading electrical charging infrastructure and funding two years of operation of the SSF Shuttle program.
City Transportation-Related Amenities (TRA)
If awarded, the AHSC funds will pay up to $555,840 to the following bus shelters.
1) Installation of five bus shelters: one shelter on the north side of Mission and Holly, one shelter on the south side of Mission and Holly, one shelter on Mission and Evergreen, one shelter on the east side of Alida Way at Rotary Plaza, and one shelter on the west side of Alida Way at Rotary Plaza.
AHSC-Funded Developer Transportation Improvements
In addition to the City transportation improvements discussed above, BRIDGE will take on transportation improvements included in the scope of the PUC Project and fronting their affordable building. These require some cooperation from the City in maintaining site control or property owned by the San Francisco Public Utilities Commission (SFPUC) on which the improvements will be built. Specifically, those improvements include the following STI elements:
1) Construct new sidewalk and related improvements along a portion of the west side of Mission Road, from approximately Grand Avenue to Oak Avenue; and
2) Construct raised crosswalks located within Mission Road at approximately Grand Avenue and Oak Avenue, and within Oak Avenue at approximately Mission Road.
The City currently has a permit to do work in this same SFPUC-owned parcel as part of the Library Parks and Recreation (LPR) project.
AHSC Scope of Work for Anti-Displacement Strategy
In addition to the transportation improvement discussed above, if AHSC is awarded, the City will also receive $150,000 over three years ($50,000 each year) to support the City’s existing rental assistance program. The brief scope of work (SOW) required of the AHSC application simply summarizes the City’s existing program structure and that the funds will be used as direct rental assistance payments. The SOW is included as Exhibit B to the associated resolution.
AHSC Implementation and Cooperation Agreement
The AHSC Implementation and Cooperation Agreement (Agreement) provides for the event in which BRIDGE is awarded the grant and the City can receive funds for the identified STI and TRA projects, as well as the anti-displacement work. The Agreement stipulates that the City will receive up to $334,5004,736,500 for STI projects and up to $555,840 for TRA projects, as well as $150,000 for the anti-displacement scope of work. Additionally, cost overruns for the identified projects are to be borne by the City. Staff has identified and cost-estimated these projects conservatively to limit the risk that there are cost overruns. The Agreement is included as Exhibit A to the associated resolution.
Potential Additional Funding for City Transit Projects
Shortly before publication of this staff report, BRIDGE and the City were notified that BART, the transit agency partner on the grant application, would not be purchasing new BART cars with the grant funding (if awarded) and therefore the grant application has $5 million additional dollars that can be spent on transit improvements. City staff is working closely with BRIDGE and BRIDGE’s grant consultant, CD-RG, to identify transit improvements that enhance the grant application score (and therefore likelihood of being awarded) and provide meaningful transit enhancements to the affordable housing project and project area (defined as within one mile of the project site). Two potential options being discussed are 1) enhancements to the City’s Free Shuttle and 2) service increases to Samtrans routes in South San Francisco. City staff responsible for the Free Shuttle is engaged and working on an appropriate scope given community and Council interest in expansion in the past. Likewise, City staff is connecting with Samtrans to understand their willingness to partner to expand service in South San Francisco via grant funding.
Due to the late notice from BART that they will not be purchasing cars in support of this grant application, the final scope for this remaining $5 million is still being refined and greenhouse gas reduction scores estimated to understand the most effective project to pursue in order to maximize the grant application score. Staff anticipates an errata sheet identifying additional scope in the Implementation and Cooperation Agreement may be necessary to present to Council at the March 13th meeting. Any identified changes to the scope of work will be added to the agenda packet as soon as finalized.
FISCAL IMPACT
Should BRIDGE be awarded the AHSC grant, $1,040,3405,292,340 would pass through BRIDGE to the City for the transportation projects identified in this report, as well as $150,000 for the City’s anti-displacement work. While staff do not anticipate cost overruns on the transportation improvements, any that could not be mitigated could be borne by other grants (if awarded), or the City’s legacy Bike and Pedestrian Impact Fee or new Citywide Transportation Impact Fee.
RELATIONSHIP TO STRATEGIC PLAN
Supporting affordable housing and alternative modes of transportation is in line with the City’s Strategic Plan Priority #2: Quality of Life, providing a full range of housing options and providing excellent bike paths, pedestrian ways, and multi-modal transportation options.
CONCLUSION
Staff recommends that City Council adopt a resolution:
1) Affirming the City’s support for BRIDGE’s application to the AHSC grant program for the 1051 Mission Affordable (PUC Project) project requesting up to $50 million of AHSC funds for affordable housing development and transportation infrastructure improvements; and
2) Authorizing the City Manager to execute an AHSC Implementation and Cooperation Agreement with BRIDGE as required for reimbursement for the City’s STI and TRA projects; and
3) Authorizing the City Manager to execute an AHSC Scope of Work document as required for the application’s Anti-Displacement Strategy.
Attachments:
1. Map of City Improvements