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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)
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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 fundin...
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