Title
Adopt a Resolution to Approve And Authorize the City Manager to Submit a California Department of Housing and Community Development Affordable Housing and Sustainable Communities (AHSC) Round 10 Program Application Together with Pacific West Communities, Enter into a Memorandum of Understanding with Alameda County Transportation Commission, and Should Grant Funds Be Awarded, Execute Documents to Accept the Program Funds for the Bay Fair Apartment Project
Staffreport
COUNCIL PRIORITY
• Quality of Life
• Economic Development
• Public Safety
• Infrastructure
• Housing and Homelessness
SUMMARY
The Resolution would authorize submission of an application in conjunction with Pacific West Communities for funds to support the Bay Fair Apartment project, enter into a memorandum of understanding (MOU) with Alameda County Transportation Commission (Alameda CTC) for construction of certain improvements, and should grant funding be awarded, authorize execution of documents required to receive program funds.
RECOMMENDATIONS
Staff recommend that the City Council adopt a resolution to approve and authorize the City Manager to submit a grant application as a co-applicant for the Affordable Housing and Sustainable Communities (AHSC) program, enter into a MOU with Alameda CTC, and should grant funding be awarded, execute documents to receive program funds.
BACKGROUND
The California Department of Housing and Community Development (HCD) Affordable Housing and Sustainable Communities (AHSC) Program provides loans and grants for projects that provide both affordable housing and improvements to pedestrian, bicycle, and transit facilities. The AHSC Program is funded from California’s cap and trade emission reduction program. Application for AHSC grant funds requires a partnership between a housing developer and public agency.
Pacific West Communities, a housing developer, has prepared plans for Bay Fair Apartments, a 497-unit housing project located at the intersection of Bayfair Drive and East 14th Street that qualifies as an affordable housing project.
In May 2025, Pacific West Communities and City of San Leandro as co-applicants submitted a grant application for AHSC Program, Round 9; however, the application was not selected for funding.
In early March, HCD released a Notice of Funding Availability (NOFA) for Round 10 of the AHSC Program.
Analysis
Based on feedback received from HCD staff on the City’s Round 9 application, Staff believe that an application that includes both the Bay Fair Apartment project and Alameda CTC’s East Bay Greenway Multimodal (Phase 1) project would meet the goals of the AHSC Program, Round 10 for a funding award.
Staff recommend that the City again partner with Pacific West Communities as a co-applicant to submit a AHSC Round 10 funding application for up to $50,000,000, consisting of up to $35,000,000 as a loan for the Bay Fair Apartment project and up to $15,000,000 as a grant for pedestrian, bicycle, and transit improvements. If the City decides not to partner with Pacific West Communities, Pacific West Communities will be unable to apply for the program funds themselves.
Staff also recommend that the City enter into a MOU with Alameda CTC obligating Alameda CTC to construct the Phase 1 East Bay Greenway Multimodal improvements and obligating the City to forward up to $15,000,000 in AHSC grant funds to Alameda CTC to complete the project. If funding is awarded, Alameda CTC would be responsible for construction of the multimodal improvements previously listed and will receive $15,000,000 for the work.
Pacific West Communities would receive a loan of $35,000,000 for construction of the Bay Fair Apartments. Failure to complete any aspect of the project will likely require returning the funds and may impact the City’s future ability to compete for future grant funds.
Financial Impacts
There is no impact to the General Fund. There is no required local match for the grant.
ATTACHMENTS
A: Resolution - AHSC Round 10
B: Draft AHSC Alameda CTC MOU
PREPARED BY: Robin Chee, Associate Engineer, Public Works Department - Engineering & Transportation