Public Hearing Regarding Public Hearing to Facilitate a Tax-Exempt Bond Financing for Acquisition, Construction, Improvement, and Equipping of the Site A Affordable Family and Senior Projects by Eden Housing, October 16, 2018
1. Project Funding Sources
In June 2015, the City Council approved the Site A Development Plan and a Disposition and Development Agreement (DDA) with Alameda Point Partners (APP) for a 68-acre area within Alameda Point. Site A includes 800 housing units, two hundred (200) of which are required to be affordable. The DDA provides for a donation of land by the City for the Affordable Housing Projects and a developer contribution of $3 million as part of the financing for the projects.
In March 2016, APP assigned the Affordable Housing Implementation Plan contained in the DDA to Eden Housing, which designated Eden Housing as the Qualified Affordable Housing Developer for Site A. On January 16, 2017, the City Council approved County of Alameda Measure A1 funds in the amount of $5 million to Eden’s Family and Senior Affordable Housing Projects. On October 17, 2017, the City Council approved execution of two Ground Lease Agreements between the City and Eden Housing to provide Eden Housing with direct site control over Block 8, designated for the Senior and Family Affordable Housing Projects, which would increase its competitiveness for grants and tax credit funds.
Eden Housing, in coordination with APP, has expended significant staff and financial resources securing financing sources to fund the Block 8 projects and has been successful in obtaining numerous funding sources described in greater detail below. However, earlier this year, Eden was unsuccessful in obtaining funding from two key highly competitive funding sources - 9% Low Income Housing Tax Credits (LIHTC) and the Affordable Housing and Sustainable Communities (AHSC) funding. On October 2, 2018, City Council approved recommended amendments to the DDA ground leases to extend certain dates in the Milestone Schedule to allow Eden Housing to pursue additional funding sources to fund the Projects.
As part of the Milestone Schedule extension, Eden will pursue a new approach to financing and building the affordable housing. Rather than waiting to fully fund both projects and constructing them simultaneously, Eden will move forward immediately on the 60-unit senior housing project (Phase 1) and, once that funding is secured, to then focus on funding the 70-unit family housing project (Phase 2). Exhibit 1 provides a list of funding sources secured to date, sufficient to close and commence construction on the senior project by March 2019 and be completed by July 2020. It also shows the list of funding sources for the family project that is realistic and obtainable over the next 12-18 months.