REPORT TO COUNCIL
SUBJECT
Title
Action on a Resolution Approving and Authorizing the City Manager to execute a Loan Agreement with ZAEN Partners, LLC for a loan of up to $6,000,000 to support the construction of 150 affordable housing units located at 2302 Calle Del Mundo and Approve the Related Budget Amendment [Council Pillar: Promote and Enhance Economic and Housing Development]
Report
BACKGROUND
On October 22, 2019, City Council approved and authorized the City Manager to execute an Affordable Housing Agreement with ZAEN Partners, LLC for the provision of thirty (30) very low-income units at 2302 Calle Del Mundo (APN# 097-46-024).
ZAEN Partners, LLC ("Developer"), an affiliate of Ensemble Development ("Ensemble"), is the project sponsor for three infill, mixed-use projects within the Tasman East Specific Plan area that would cumulatively include approximately 969 rental apartment units, associated parking garages, up to 30,000 square feet of retail space, approximately 4,500 square feet of leasing space, and approximately 55,000 square feet of amenity space (collectively, the "ZAEN Tasman East Projects").
At the October 22, 2019 meeting, City staff presented a proposal to consolidate the cumulative affordable housing obligations of the Developer to deliver very low-income units at a single site in lieu of providing moderate affordable units within each individual project. Specifically, the
Developer agreed to deliver all of the affordable unit requirements for three separate projects at once within the project at 2302 Calle Del Mundo by providing thirty (30) very-low income affordable housing units (defined as affordable to households earning an average of 50% of Area Median Income (AMI)), for a period of 55 years, in addition to paying a one-time Affordable Housing In-Lieu Fee equal to one half unit at the residential rental rate (estimated at $77,000). The approval allowed for a single Affordable Housing Agreement (AHA) with the City of Santa Cl...
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