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BACKGROUND Kottinger Place is a 50 unit single-story HUD public housing developed on a 3.3 acre site located at 240 Kottinger Drive. Built in 1972, the units are in generally good condition for buildings of this type and age. However, the units are not compliant with current accessibility standards, are not energy efficient, lack features that allow seniors to age in place, incur costly ongoing maintenance, lack space for service provision, and the overall demand exceeds the number of units available. Located across the street from Kottinger Place, Pleasanton Gardens consists of 40 affordable senior housing units owned by Pleasanton Gardens, Inc., a non-profit organization formed by local churches to provide more affordable senior housing. Constructed in 1969, Pleasanton Gardens shares many of the same physical issues as Kottinger Place. Pleasanton Gardens was originally financed with a HUD 236 loan, which was paid off in June 2010. In early 2004, the Kottinger Place Redevelopment Task Force was formed to oversee the potential redevelopment of both sites. The Task Force's goals for Kottinger Place were to retain affordability, increase the number of units, facilitate the ownership of the property by a non-profit, be designed for independent living and aging in place, and make sure the City would be able to retain ownership of the site through a long-term ground lease. In December 2011, the Kottinger Place Redevelopment Task Force and the City of Pleasanton selected MidPen Housing to prepare a predevelopment report, which explored the feasibility of redeveloping Kottinger Place and Pleasanton Gardens. Based on this analysis, the Task Force determined that new development on Kottinger Place and Pleasanton Gardens best met their objectives to increase affordable senior housing in Pleasanton, retain the existing site character, achieve financial efficiency and sustainability, and develop a site plan that is complimentary to the existing neighborhood. In October 2012, the City Council approved the predevelopment report and authorized the Task Force to continue developing a plan for both properties. Planning with the Task Force, neighbors, and residents during 2013 culminated with the City Council's approval of the Task Force's recommended preliminary site plan to develop 185 new homes in place of the existing properties and authorizing MidPen to submit a Planned Unit Development Application to the City's Planning Department. In April 2014, the City's Planning Commission unanimously approved the 185-unit Planned Unit Development Application for Kottinger Gardens. One month later, the City Council also unanimously approved the project. DISCUSSION Disposition and Change of Ownership On February 26, 2015, the City of Pleasanton's Housing Authority received HUD's approval for the disposition of Kottinger Place, authorizing the land to be transferred to the City of Pleasanton and allowing for the demolition and redevelopment of Kottinger Place to occur. MidPen and City Staff met with HUD's San Francisco Office following the approval to understand the next steps in the process. These include the execution of a Disposition Agreement, the Release of HUD's Declaration of Trust on the property, and recording a HUD Use Agreement, which will restrict 103 of the new Kottinger Page 2 of 6