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Report regarding a resolution of the City Council of the City of South San Francisco authorizing the acceptance of an Infill Infrastructure Grant Program of 2019 Program Award in an amount not to exceed $28,817,500 for the SSF PUC Housing Project. (Nell Selander, Economic & Community Development Director)
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RECOMMENDATION
Recommendation
Staff recommends City Council adopt a resolution of the City Council of the City of South San Francisco authorizing the acceptance of an Infill Infrastructure Grant Program of 2019 Program Award in an amount not to exceed $28,817,500 for the SSF PUC Housing Project.
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BACKGROUND/DISCUSSION
In 2022, the City applied for an Infill Infrastructure Grant (IIG) from the California Department of Housing and Community Development (HCD) to support the construction of the infrastructure and affordable housing component of the PUC Project, to be built by L37/KASA and BRIDGE Housing. The PUC Project includes 800 housing units (of which 158 units will be affordable), publicly accessible open space, a new bridge over Colma Creek connecting Mission Road to Civic Campus Way, a childcare center serving over 75 children, and a market hall with neighborhood serving retail. The City applied for $28.8 million in IIG funding.
Pursuant to a conditional award letter dated February 9, 2023, the City was awarded $28,817,500. Staff recommends that Council take action to accept that award and authorize the City Manager to enter into a Standard Agreement with HCD to secure the nearly $29 million award. Once the Standard Agreement is executed, the City will negotiate a Disbursement Agreement with HCD that details how the funding will flow to the City. The City will similarly enter into disbursement agreements with L37/KASA and BRIDGE to deliver the eligible project components, including infrastructure such as the bridge over Colma Creek, parking facilities, and components of the affordable housing building.
FISCAL IMPACT
There is no fiscal impact to the City’s General Fund of approving the associated resolution. Accepting this IIG award will accelerate the development of affordable housing in South San Francisco.
CONCLUSION
Staff recommends City Council adopt a resolution of the City Council of the City of South San Francisco authorizing the acceptance of an Infill Infrastructure Grant Program of 2019 Program Award in an amount not to exceed $28,817,500 for the SSF PUC Housing Project.