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BACKGROUND <br /> The State of California, Department of Housing and Community Development (HCD) <br /> issued a Notice of Funding Availability dated October 26, 2015 (NOFA), under its <br /> Housing-Related Parks (HRP) Program. The HRP Program provides grant funds to <br /> cities and counties for documented housing starts of newly constructed, substantially <br /> rehabilitated converted or preserved rental and ownership housing units with <br /> affordability restrictions for low and very low income households. Funds awarded may <br /> be used for park and recreation facility improvements within the applicant's jurisdiction. <br /> The HRP Program was funded through the State Proposition 1C (Housing and <br /> Emergency Shelter Trust Fund Act of 2006) and will provide a total of $30 million during <br /> the current Designated Program Year 2015 in financial incentives to communities as a <br /> means of rewarding jurisdictions that create new affordable housing opportunities. <br /> Funds are awarded on a non-competitive basis to jurisdictions based on the number of <br /> housing starts produced during the period of January 1, 2010 through December 31, <br /> 2015 and the ability of the jurisdiction to meet the minimum threshold requirement for <br /> funding of$75,000. <br /> DISCUSSION <br /> HRP grant funds are awarded per bedroom for all affordable units permitted during the <br /> project period. The funding award amount is based on levels of affordability restriction <br /> (50% or 80% of Area Median Income) and other bonus criteria such as infill project <br /> status and location within a lower income census tract and/or park deficient <br /> neighborhood. The City has entered into several Affordable Housing Agreements with <br /> developers over the past few years for projects which meet the qualifications of the <br /> program, including: The Vines development (ownership), Anton Hacienda apartments, <br /> Essex Properties' Owens and Hacienda apartments (BRE 1 & 2) and Pleasanton <br /> Gateway (Township Square) apartments, which have produced a total of 144 affordable <br /> units. Projects must document an affordability restriction in place for a minimum of 55 <br /> years for rental and 20 years for ownership housing. <br /> Staff recommends future upgrades to Kottinger Village Park as the proposed park <br /> project to be included in the application due to its proximity to the future Kottinger <br /> Gardens project and potential for enhancements to support the expansion of those <br /> residences and benefit the surrounding neighborhood. While some improvements were <br /> recently completed there, tree replanting, pedestrian/access path improvements related <br /> to the project and other water conservation measures and landscaping improvements <br /> will be needed. If funds are awarded, staff will develop a scope of improvements for the <br /> park for approval at a future City Council meeting. Staff recommends approval of a <br /> funding application as described in this report. Award announcements will be made by <br /> HCD no later than June 30, 2016. <br /> Page 2 of 3 <br />