REPORT TO COUNCIL
SUBJECT
Title
Action on a Resolution Authorizing the City Manager to Execute an Amended and Restated Affordable Housing Agreement and Negotiate and Execute Loan Project Documents with Mainline North 701, L.P. for Construction of 151 Affordable Housing Units Located at 2310 Calle Del Mundo
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing, and Transportation Development
BACKGROUND
The subject project, a 100% affordable 151 unit housing development at 2310 Calle Del Mundo (previously referred to as 2302 Calle Del Mundo), is one of several projects currently under development within the Tasman East Specific Plan area. Utilizing provisions within the City's Affordable Housing Ordinance, the City Council previously approved an Affordable Housing Agreement (AHA) allowing the consolidation of the affordable housing obligations from three Tasman East Specific Plan projects so that they are fulfilled through the development of the subject 100% affordable housing project. This approval was granted based on a determination that the 100% affordable housing project would better meet the City's Regional Housing Needs Allocation (RHNA) targets by providing units at deeper affordability levels (e.g., very low-income VLI and low-income LI units) compared to the moderate (Mod) income units otherwise produced through the City's Affordable Housing Ordinance inclusionary requirement. The City also concluded that the development of the 100% affordable project represented a greater value to the City in terms of the total amount of subsidy that would be invested in the project through a combination of developer contributions and outside funding.
Three iterations of the 2310 Calle Del Mundo project have been previously approved by the City Council with the most recent approved in October 2020. These iterations were necessary as the project proponents made adjustments to the project financing to make the project feasible. The original project developer, Z...
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