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Legislative Public Meetings

File #: 24-590    Version: 1 Name:
Type: Consent Calendar Status: Agenda Ready
File created: 5/28/2024 In control: Council and Authorities Concurrent Meeting
On agenda: 8/20/2024 Final action:
Title: Action to approve and authorize the City Manager to execute Amendment No. 1 to the Amended and Restated Affordable Housing Agreement with SHAC LS Apartments II, LLC for 3580 Rambla Place Building A in a final form approved by the City Attorney, execute minor amendments thereto, and to take any other action necessary to implement the requirement to reduce the number of affordable rental units from 53 to 43 and lower the affordability levels at 3580 Rambla Place Building A.
Attachments: 1. Sofia Bldg A - Affordable Housing Agreement with SHAC LS Apartments II, LLC, 2. Sofia Bldg A – Covenant Restrictions with Shac LS Apartments II, LLC, 3. Sofia Bldg A – Amended Affordable Housing Agreement with SHAC LS Apartments II, LLC, 4. Sofia Bldg A – Amended Covenant Restrictions with Shac LS Apartments II, LLC, 5. Draft Amendment No. 1 Affordable Housing Agreement, 6. Draft Amendment No. 1 Covenant Restrictions
REPORT TO CITY COUNCIL
SUBJECT
Title
Action to approve and authorize the City Manager to execute Amendment No. 1 to the Amended and Restated Affordable Housing Agreement with SHAC LS Apartments II, LLC for 3580 Rambla Place Building A in a final form approved by the City Attorney, execute minor amendments thereto, and to take any other action necessary to implement the requirement to reduce the number of affordable rental units from 53 to 43 and lower the affordability levels at 3580 Rambla Place Building A.

Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development

BACKGROUND

This project is referred to as "Sofia" or "Building A" and is part of a larger project in the Lawrence Station Area located at 3580 Rambla Place. The project was not subject to the City's Affordable Housing Ordinance because it was approved by City Council on November 29, 2016, before the ordinance took effect. However, the applicant did enter into an Affordable Housing Agreement (AHA) as they voluntarily agreed to provide affordable rental units. With the proposed amendment to this AHA, the City will receive a project with deeper affordability.

Although the 537 dwelling units in Sofia were originally proposed as a for-sale project, SummerHill Homes ultimately decided to proceed with Sofia as a rental development thereby entering into a rental Affordable Housing Agreement (AHA) on March 20, 2019. This AHA designated 52 affordable rental units within Sofia for low and moderate-income residents for 55 years. Of these units, 47 were designated for moderate-income households (based on 120% of the Area Median Income (AMI)) and five for low-income households (based on 80% of the AMI). The 2019 version of the AHA along with the associated covenant restrictions are included for reference as Attachments 1 and 2.

An amendment to the AHA on May 1, 2020 added one more moderate-income unit bringing the total to 53 affordable rental units at Sofia. The Amended A...

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