REPORT TO CITY COUNCIL
SUBJECT
Title
Action on Amendment No. 9 to the Exclusive Negotiation Agreement and Amendment No. 7 to the Amended and Restated License Agreement with Habitat for Humanity East Bay / Silicon Valley for an Affordable Homeownership Development Project at 3575 De La Cruz Boulevard to Extend the Agreements for an Additional One Year.
Report
BACKGROUND
The City selected Habitat for Humanity East Bay / Silicon Valley (Developer or HHEBSV) in 2018 through a competitive process as the developer for a City-owned affordable housing site at 3575 De La Cruz Boulevard. The City is working with the Developer through an Exclusive Negotiation Agreement (ENA) for the development of a family-oriented, affordable homeownership development. However, due to design challenges, limited funding sources, and interest rate volatility, the Developer has been unable to secure all of the necessary funding for the Project, and the City and the Developer have not reached an agreement on the terms for a Disposition and Development Agreement (DDA) as contemplated in the ENA. Therefore, staff is requesting a one-year extension of the ENA to allow the Developer more time to secure funding and for staff to prepare a DDA and Amendment No. 7 to the Amended and Restated License Agreement (License). The current ENA and License expire December 30, 2025.
The State, through the CalHome program, has committed to fund a portion of the project. The developer is working on additional funds through a possible 2026 state housing bond which could supply new affordable housing funds to the County, federal grants, and any remaining opportunities to fully fund the project. The developer is working in good faith to secure funds, and therefore staff is recommending the Exclusive Negotiation Agreement be extended until December 2026.
The Property is currently a vacant 0.7-acre site and was previously developed with a City Fire Station, which was demolished in 2010. An 80-foot PG&E easement c...
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