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BACKGROUND Tri-Valley REACH has been providing affordable homes to adults with developmental disabilities for the past 30 years. REACH is continually exploring options to expand its inventory of housing that provide adults with developmental disabilities the opportunity to live independently, and it has been extremely difficult to acquire new properties due to high home prices in Pleasanton. In August 2021, Tri-Valley REACH proposed a concept to use Measure Al funds to construct accessory dwelling units (ADUs) on two of the single-family properties it owns in Pleasanton (one on Tanager Drive and one on Hansen Drive), which accommodate its special needs clients in a supportive group living environment. The construction of 2-bedroom ADUs was proposed as a cost-effective way for REACH to accommodate two additional tenants at each property and increase its capacity to house Pleasanton residents from 16 to 20 individuals, at a preliminary estimated cost of approximately $550,000. Given the unique needs of its clients/residents, providing housing in the form of ADUs on existing properties is a cost-efficient way to expand its inventory of available units in Pleasanton. In comparison, constructing or acquiring a new 2-bedroom unit on a separate lot would only accommodate two of REACH's typical tenants but cost $750,000 or more. Alameda County Measure Al Bond In November 2016, the Measure Al Bond, which was proposed to fund affordable rental housing and homeownership developments, was passed by over 73 percent of Alameda County voters. Of the $580 million countywide Housing Bond program funds, $225 million was specifically earmarked for the Rental Housing Development Fund to create and preserve affordable rental housing for vulnerable Alameda County residents. Pleasanton was awarded more than $13.7 million, and the City previously allocated $11,795,844 as low interest County loans to two affordable housing developments: 1) $4,600,000 to the 54-unit senior housing Kottinger Gardens Phase 2 in 2017; and 2) $7,195,844 to the 31-unit Sunflower Hill for adults with developmental disabilities in 2018. 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 Prior Council Action At its June 21, 2022 meeting, the City Council, after reviewing the REACH project including the proposed floor plans and elevations for the two ADUs, authorized the allocation of this remaining balance of Measure Al funds to the project. In December 2022, REACH submitted a building permit application for the ADUs to the City for review and approval. Page 3 of 6