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The City of Pleasanton's $13,720,684 "Base City Allocation" has a remaining balance of $552,772, as shown on the table below: Base City Allocation: $13,720,684 Less: County HCD Administration Cost (including bond issuance) ( 1,372,068) 54 -unit Kottinger Gardens Phase 2 development ( 4,600,000) 31 -unit Sunflower Hill development ( 7,195,844) Remaining balance $ 552,772 Tri -Valley REACH seeks the remaining $552,772 balance from the City's $13.7 million allocation from this fund. City staff has been working with Alameda County Housing and Community Development Department (County HCD) to discuss the Tri -Valley REACH ADU project proposal to ensure the project complies with the Bond program policies. City staff also worked to obtain County HCD's written approval for a 12 -month extension to commit these remaining funds as per the Measure Al funding policy guidelines required that all "Base City Allocation" funds must be committed to an affordable housing project by December 31, 2021. The City has been granted a one-year extension until December 31, 2022. Uncommitted funds will be rolled back to the County HCD's Regional Pool. DISCUSSION City staff explored different options for how to commit the remaining $552,772 "Base City Allocation" funds prior to the new December 31, 2022, commitment deadline. City staff reached out to various non -profits including Tri -Valley REACH, which has been providing affordable homes to adults with developmental disabilities for the past 30 years. Tri -Valley REACH is continually exploring options to expand its inventory of housing that provides adults with developmental disabilities an opportunity to live independently. As the real estate market continues to see rapidly escalating sales prices of homes, Tri -Valley REACH has had difficulties acquiring new properties. Tri -Valley REACH proposed the alternative of using the Measure Al funds to construct accessory dwelling units (ADUs) on two of its Pleasanton properties. The construction of 2 -bedroom ADUs is more cost effective and could accommodate two additional tenants at each property. This will allow Tri -Valley REACH to increase its Pleasanton residents from 16 to 20 at a preliminary estimated cost of approximately $500,000. In comparison, a 2 -bedroom townhome would only accommodate 2 tenants but cost more at approximately $750,000. Tri -Valley REACH is already engaging with Hello Housing, a Bay Area non-profit organization that specializes in providing feasibility and project management support to homeowners who want to add an ADU or JADU to their property. Tri -Valley REACH and Hello Housing are collaborating to submit an ADU permit application to the City for review and approval. City staff has reviewed the proposed floor plans and elevations (see Attachment 2) and is prepared to review the permit application once it is submitted. Page 3 of 4