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Home My WebLink AboutHomelessness and Housing Subcommittee 2025-04-01 Agenda Packet City of San Rafael Homelessness & Housing Subcommittee April 1, 2025 | 1:30 - 2:30 PM 3rd Floor Large Conference Room 1400 Fifth Avenue, San Rafael, CA To view meeting (non-participation): https://us02web.zoom.us/j/86017069723 Meeting ID: 860-1706-9723# Phone: (669) 444-9171 1) Call to Order 2) Discussion Items a) Discussion on 2025 Affordable Housing Trust Fund NOFA Applications The Committee will receive an update on the applications submitted for the 2025 Affordable Housing Trust Fund NOFA and discuss funding recommendations based on the application review process. 3) Future Agenda Items 4) Public Comment The public is welcome to address the subcommittee at this time on matters not on the agenda that are within its jurisdiction. Public comments under this category may be limited to two minutes per speaker per item at the discretion of the Chair with the consent of the Committee. 5) Adjournment Any records relating to an agenda item, received by a majority or more of the Subcommittee less than 72 -hours before the meeting, shall be available for inspection in the City Manager’s Office, 1400 Fifth Avenue, San Rafael, CA 94901. online prior to the meeting. Sign Language interpreters may be requested by calling (415) 485-3066 (voice), emailing Lindsay.lara@cityofsanrafael.org, city.clerk@cityofsanrafael.org, or using the California Telecommunications Relay Service by dialing “711”, at least 72 hours in advance of the meeting. Copies of documents are available in accessible formats upon request. To request Spanish language interpretation, please submit an online form at https://www.cityofsanrafael.org/request-for-interpretation/. Public transportation is available through Golden Gate Transit, Line 22 or 23. Paratransit is available by calling Whistlestop. Wheels at (415) 454-0964. To allow individuals with environmental illness or multiple chemical sensitivity to attend the meeting/hearing, individuals are requested to refrain from wearing scented products. Housing and Homelessness Subcommittee April 1, 2025 2025 Notice of Funding Availability for the Preservation or Development of Affordable Housing Preliminary Funding Recommendations EXECUTIVE SUMMARY On January 22, 2025, the County of Marin issued a Notice of Funding Availability (NOFA), including $500,000 available through the City of San Rafael (City) Affordable Housing Trust Fund for the preservation or development of affordable housing. The application period ended on Febr uary 19, 2025. The City received three funding requests, all of which met the NOFA requirements to be considered for funding. A City staff panel reviewed the three NOFA responses using the evaluation criteria established in Section 5 of City Council Resolution No. 14760, Guidelines for the Administration of the Affordable Housing Trust Fund, which includes community benefit, development team capacity, management team capacity, readiness to proceed, leverage and collaboration, and per unit subsidy. Staff are now seeking feedback from the Housing and Homelessness Subcommittee on staff’s preliminary funding recommendations outlined in Table One. TABLE ONE: SUMMARY OF FUNDING REQUESTS AND STAFF FUNDING RECOMMENDATIONS Request Type Project Type Address # of Units # of Bedrooms Rent Restriction (% of AMI) Sponsor Total Project Cost 2025 Request Prior Award Recommended Funding (per unit subsidy) Pre-Dev New Construction 519 4th St 56 53 one-bedrooms 3 two-bedrooms 20%, 30%, 50%, 60% Abode Housing $54,048,539 $200,000 -- $200,000 ($3,571) Gap Rehab 455 Canal St 28 1 studio 4 one-bedrooms 19 two-bedrooms 4 three-bedrooms 50% EAH Housing $16,173,744 $500,000 -- -- Gap Acquisition 158 – 166A Park St 6 6 one-bedrooms 70% Marin Foster Care $2,165,000 $250,000 -- $60,000 ($10,000) Total $950,000 $260,000 Housing and Homelessness Subcommittee April 1, 2025 SUMMARY OF APPLICATIONS RECEIVED AND STAFF FUNDING RECOMMENDATIONS 1. Abode Housing | 519 4 th Street Staff recommend awarding $200,000 in pre-development funding for the construction of 100 percent affordable housing at 519 4th Street. This recommendation is based on the project’s deep affordability, dedication of units to formerly homeless individuals, and the addition of much needed units to the City’s housing supply. The project will also include onsite supportive services, including mental healthcare, job assistance, and substance abuse treatment. The project developer, Abode Housing, has entered into a twelve-month Exclusive Negotiating Agreement (ENA) with the City to develop affordable housing on this City-owned property. The proposed project includes 56 apartments (53 one-bedroom, 3 two-bedroom) for individuals and families earning 20 to 60 percent of Area Median Income (AMI), with 50 percent of units to be designated for formerly homeless individuals. Abode Housing is seeking Project Design resources to complete the Planning application and entitlement process. Project Evaluation Criteria: ▪ Community Benefit – New construction of 56 units serving low-, very low-, and extremely low-income households, including 50 percent for formerly homeless individuals ▪ Development Team Capacity – Project team experience with successful completion of affordable, permanent supportive housing sites, new construction and rehab projects ▪ Management Team Capacity – Deep organizational experience with constructing and operating 100 percent affordable developments that include 50 percent of units serving formerly homeless individuals ▪ Readiness to Proceed – 12-month Exclusive Negotiating Agreement on the property ▪ Leverage and Collaboration – Developer contribution of $100,000 to date; pending County funding request of $300,000; pending application for technical assistance through ABAG; and anticipated Community Development Fin ancial Institution funding to complete pre-development scope ▪ Reasonable Per Unit Subsidy – $3,571/unit for 56 units of new construction ▪ Alignment with Housing Element Goals – End and prevent homelessness in San Rafael; Meet housing needs through a range of housing choices and affordability levels throughout the city; Adds 56 below market rate units toward the City's Regional Housing Needs Allocation ▪ Additional Considerations: Located within quarter mile of transit, s erves very-low- and/or extremely-low-income households, and includes 20% or more permanent supportive housing 2. EAH Housing | Riviera Apartments Staff does not recommend awarding funding for this project at this time. The review process uncovered requirements related to the property’s location in a floodplain that significantly impact the project scope and increase the cost of the rehabilitation. EAH Housing seeks to rehabilitate the existing 28-unit complex built in the 1970s through the following upgrades: seismic upgrades; electrification including panel and transformer replacement; interior repairs such as replacement of gas fired wall heaters with more efficient units; replacing kitchen, bathroom, and living area cabinetry, flooring, and appliances. The Housing and Homelessness Subcommittee April 1, 2025 estimated construction costs exceed 50 percent of the property’s overall market value , as assessed by the Marin County Assessor’s Office. Due to the property’s location in the Canal floodplain area, exceeding this 50 percent threshold designates the proposed work as substantial improvement under the Federal Emergency Management Agency (FEMA) regulations. This designation triggers compliance with the following requirements:1 • The lowest floor elevation of the residential units will need to be elevated to one foot above the Base Flood Elevation (BFE). • Any building area below the elevation of BFE+1’ will only be allowed to be used for parking, building access, or storage and would have to be wet floodproofed. • Electrical, heating, ventilation, plumbing and air conditioning equipment and other service facilities will need to be elevated above the elevation of BFE+1’ or designed to prevent water from entering or accumulating. • Water and sewer systems must be designed to minimize infiltration of flood waters and discharge into floodwaters. City staff have informed EAH Housing of these requirements and met with their project team, along with Sarah Teplitsky, Associate Civil Engineer in the Department of Public Works, and Don Jeppson, Chief Building Official. The EAH team is exploring options for moving forward with the rehabilitation and has scheduled a joint call with the City and County of Marin on April 1. Given the significant compliance requirements affecting the initial proposed rehabilitation, staff do not recommend a funding award at this time. EAH Housing may reapply for funding for this project through a future NOFA from the City’s Affordable Housing Trust Fund. Given the age of the housing stock in San Rafael, City staff anticipate that complying with these requirements will be a challenge for many properties in the floodplain. City staff is seeking to identify additional funding sources or strategies used in other jurisdictions to support rehabilitation efforts for properties located in the floodplain . Project Evaluation Criteria: ▪ Community Benefit – Preserves and improves affordable housing units serving low income families and individuals ▪ Development Team Capacity – Wide project team experience with successful completion of affordable, permanent supportive housing sites, new construction and rehab projects ▪ Management Team Capacity – Deep organizational experience with constructing and operating 100 percent affordable developments ▪ Readiness to Proceed – While the project scored well on other criteria, the project is not being recommended during this funding cycle primarily based on lack of readiness, given the need to revise the scope and cost estimates for compliance with floodplain requirements. ▪ Leverage and Collaboration – Awarded $700,000 in HOME funds in 2024 ▪ Reasonable per Unit Subsidy – Requested $17,857 per unit for rehabilitation of 28 very low-income units ▪ Alignment with Housing Element Goals – Ensuring housing habitability and maintenance for affordable units 1 From Title 18 of the San Rafael Municipal Code, California Building Code Section 1612, and ASCE 24- 14: Flood Resistant Design and Construction Housing and Homelessness Subcommittee April 1, 2025 ▪ Additional Considerations: Located within quarter mile of transit, provides units for larger families, serves very-low- and/or extremely-low-income households 3. Marin Foster Care | 158 – 166A Park Street Staff recommend awarding $60,000 to support the acquisition of six units at 158 – 166A Park Street. This recommendation is based on the project’s efforts to address housing instability for transition-age youth (TAY) and its contribution to expanding deed-restricted affordable housing options in the City. Marin Foster Care acquired and closed on the property on January 30, 2025 and is seeking funds to help repay a $700,000 bridge loan . Marin Foster Care acquired the six one-bedroom units to provide low-income rental housing for TAY individuals transitioning out of the Marin County foster care system. In addition to housing, TAY tenants will receive case management services through Alternate Family Services (AFS). At the time of acquisition, five of the six units were occupied by existing tenant households with incomes ranging from 80% AMI to 100% AMI. One TAY client has since moved into the vacant unit. Existing tenant households will not be displaced ; they will be replaced with TAY tenants over time upon vacating the units. As a result, there will be a delay in fully serving TAY clients through this project. On February 25, 2025, the Marin County Board of Supervisors approved a $300,000 award from the Housing Trust Fund through its rolling application process. This award originally restricted unit rents at 30% of AMI but is now being adjusted to 70% of AMI to ensure project viability. This change will require the project to return to the Board of Supervisors for further approval. The award remains contingent on a funding commitment from the City of San Rafael. Additionally, Marin Foster Care anticipates receiving a loan from Marin Community Foundation, which, along with Marin Foster Care’s reserves and private donations, will be key components of the project’s overall funding. Staff recommend funding at a per-unit subsidy rate of $10,000, for a total award of $60,000. Project Evaluation Criteria: ▪ Community Benefit – Providing designated affordable housing units for Transition Aged Youth transitioning out of the Marin County foster care system; conversion of six market- rate units to deed-restricted affordable housing ▪ Development Team Capacity – Limited experience in acquisition and residential property ownership. This is the applicant’s second residential acquisition, having acquired a 10-unit property in Novato in 202 3 for the same purpose. ▪ Management Team Capacity – The applicant is a small organization with a limited operating budget and net income . The property will be managed by Prandi Property Management, a local property management company with extensive experience. ▪ Readiness to Proceed – Marin Foster Care closed on the property acquisition on January 30, 2025 ▪ Leverage and Collaboration - $300,000 awarded from Marin County Housing Trust Fund (contingent on City funding); anticipated loan from Marin Community Foundation, applicant’s reserves, private donations ▪ Reasonable Per Unit Subsidy – $10,000/unit for 6 units of deed-restricted affordable housing ▪ Alignment with Housing Element Goals – Preventing homelessness in San Rafael; Meet housing needs through a range of housing choices and affordability levels throughout the city Housing and Homelessness Subcommittee April 1, 2025 ▪ Additional Considerations: Serves very low- and/or extremely-low-income households (While the pending City/County awards are for 70% AMI level affordability restriction, the majority of TAY clients served will be Extremely Low/Very Low Income and supported through a rental subsidy.) CONCLUSION The City received three applications in response to the County of Marin’s Notice of Funding Availability (NOFA), which included $500,000 available through the City’s Affordable Housing Trust Fund for the preservation or development of affordable housing . A panel of City staff applied the City’s Affordable Housing Trust Fund evaluation criteria and made a preliminary funding recommendation of $260,000 total, including $200,000 in pre-development funding for the construction of 100 percent affordable housing at 519 4th Street and $60,000 to support the acquisition of six units at 158 – 166A Park Street. Staff welcomes feedback from the Housing and Homelessness Subcommittee on this preliminary funding recommendation.