HomeMy WebLinkAboutReso 187-2023 (File 23-1065)• City of South San Francisco
City Council
Resolution: RES 187-2023
File Number: 23-1065
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
Enactment Number: RES 187-2023
RESOLUTION COMMITTING $1,076,383 IN
LOW/MOD-INCOME HOUSING ASSET FUNDS (FUND
241) AND $556,789 IN STATE PERMANENT LOCAL
HOUSING ALLOCATION FUNDS TO THE ROTARY
GARDENS AFFORDABLE HOUSING DEVELOPMENT
PROJECT AT 500 AND 522 LINDEN AND
AUTHORIZING STAFF TO NEGOTIATE LOANS
EFFECTUATING THE COMMITMENT. (DANIELLE
THOE, HOUSING MANAGER)
WHEREAS, the local Rotary Club and its development partner, Beacon Development, have
submitted a formal written request to the City for approximately $7.5 million in funding to support a
two-phase affordable housing project at 500 and 522 Linden; and
WHEREAS, the first phase includes an 83-unit senior affordable housing building, and the second
phase is anticipated to include a 65-unit family building; and
WHEREAS, Rotary and Beacon have not advanced phase two design yet due to a lack of
pre -development funding and project timing constraints; and
WHEREAS, Rotary and Beacon's proposed project, known as Rotary Gardens, is the only
affordable housing project in the City's development pipeline that has not received a local commitment of
funds; and
WHEREAS, the City's 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, has an excess
surplus of $1,076,383 that must be encumbered by Fiscal Year 2024-2025; and
WHEREAS, this excess surplus may not be spent on senior housing; and
WHEREAS, the City is the recipient of a five-year State entitlement grant known as the Permanent
Local Housing Allocation (PLHA) for which the first two years of funds, collectively $556,789, must be
spent by April 1, 2023, and April 1, 2024; and
WHEREAS, 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 funding for the project; and
WHEREAS, the City wishes to commit these expiring funds to the Rotary Gardens project, with
$1,076,383 from the Housing Asset Fund supporting the 65-unit family building and $556,789 in PLHA
funds supporting the 83-unit senior affordable housing building.
City of South San Francisco
File Number: 23-1065 Enactment Number: RES 187-2023
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco
that the City Council does hereby commit these expiring funds to the Rotary Gardens project, with
$1,076,383 from the Housing Asset Fund (Fund 241) supporting the 65-unit family building and$556,789 in
PLHA funds (Years 1 and 2 allocation) supporting the 83-unit senior affordable.
BE IT FURTHER RESOLVED that:
1. The foregoing recitals are true and correct and incorporated herein as part of this Resolution; and
That staff are directed to negotiate loan agreements effectuating this commitment and return to
Council for final budgetary appropriations and loan approval.
At a meeting of the City Council on 12/13/2023, a motion was made by Councilmember Nicolas,
seconded by Councilmember Nagales, that this Resolution be approved. The motion passed.
Yes: 5 Mayor Coleman, Vice Mayor Flores, Councilmember Addiego,
Councimember Nagales, and Councilmember Nicolas
Attest by
sa Govea Acosta, City Clerk
City of South San Francisco