04 - Laserfiche WebLink

THE CITY OF 4 CITY COUNCIL AGENDA REPORT PLEASAN N_ August 15, 2023 Community Development TITLE: APPROVE A $300,000 LOAN COMPRISED OF $241,176 IN FEDERAL HOME FUNDS AND $58,824 IN LOWER INCOME HOUSING FUNDS TO TRI-VALLEY REACH TO AUGMENT COUNTY MEASURE Al FUNDS PREVIOUSLY ALLOCATED FOR THE CONSTRUCTION OF TWO ACCESSORY DWELLING UNITS TO PROVIDE AFFORDABLE HOUSING TO FOUR RESIDENTS WITH DEVELOPMENTAL DISABILITIES; APPROVE AN APPROPRIATION OF $20,000 FROM THE LOWER INCOME HOUSING FUND TO OFFSET THE COST OF CITY IMPACT FEES; AND AUTHORIZE THE WAIVER OF $20,000 IN BUILDING PERMIT FEES FOR THE PROJECT SUMMARY Tri-Valley REACH (REACH), a non-profit organization, operates six existing group homes on single-family properties in Pleasanton, for residents with developmental disabilities. REACH has proposed constructing an accessory dwelling unit (ADU) on two of its single-family properties in Pleasanton (on Tanager Drive and on Hansen Drive) to provide affordable housing for four additional residents with developmental disabilities. In July 2022 the City Council authorized an allocation of $552,772, which is the remaining balance in Pleasanton's $13.7 million Measure Al "Base City Allocation," to help fund this project in the form of a low-interest loan. The Alameda County Board of Supervisors (BOS) also approved the City's requested allocation. Due to delays and rising costs for construction materials and labor, the previously allocated Measure Al funds are now only sufficient to cover the construction costs of one of the two ADUs (Tanager Drive). REACH is therefore requesting City financial assistance to ensure that the other ADU unit (Hansen Drive) can be constructed. It is proposed that a combination of $241 ,176 in Federal HOME funds and $58,824 in Lower-Income Housing Funds be used to provide a combined $300,000 to help meet the funding gap. REACH has committed to provide the remaining approximately $200,000 through its own fundraising efforts. In addition, staff recommends the City Council appropriate $20,000 from the Lower Income Housing Fund (LIHF) to be granted to REACH, to offset the cost of development impact fees for this project, and grant a waiver of $20,000 in building permit fees. This proposed grant would allow the City to comply with the Measure Al Bond policy that requires that all Measure Al projects include a match from the City of a determinable financial value, such as waived planning, building or impact fees, in which the project is located and provide further necessary financial support for the project.