PREPARED BY: KIERON SLAUGHTER DATE OF MEETING: 4/20/26
SUBJECT:
TITLE
CONSIDER RESOLUTION OF THE CITY COUNCIL, AS THE GOVERNING BODY OF THE SAN PABLO HOUSING SUCCEESSOR AGENCY, APPROVING A FUNDING COMMITMENT OF $3,000,000 FROM THE LOW AND MODERATE INCOME HOUSING ASSET FUND 250 TO SUPPORT AFFORDABLE HOUSING AT 13717 SAN PABLO AVENUE
CEQA: Approval of a funding commitment is not a project under CEQA Guidelines Section 153789(b)(4) because it constitutes the creation of a government funding mechanism that will not result in a physical change to the environment.
Label
RECOMMENDATION
Recommendation
Adopt Resolution
Body
Council Priority Workplan
Major Policy Goal: Expand Housing Options is a top Council Priority under the FY 2025-27 City Council Priority Workplan, effective April 7, 2025
BACKGROUND
The property located at 13717 San Pablo Avenue is the site of the proposed Downtown San Pablo Affordable Housing Project, led by Community Development Partners (CDP). The site is centrally located within San Pablo’s emerging walkable downtown and was previously entitled and designed as a market-rate mixed-use development. The project received entitlement approval in January 2022 and building permit approval in October 2023.
CDP now proposes to adapt the entitled plans to deliver a 91-unit affordable housing development (90 affordable units plus one manager’s unit) within a five-story building along San Pablo Avenue. The unit mix includes studios, one-, two-, and three-bedroom units targeted to extremely low-, very low-, and low-income households. This conversion responds directly to the region’s severe housing affordability challenges and aligns with the City Council’s FY 2025-27 Priority to Expand Housing Options.
The original project included approximately 10,000 square feet of ground-floor commercial space and 109 parking spaces utilizing mechanical stackers. CDP, working collaboratively with the City and project architect KTGY, intends to update the design to better support an affordable housing program while maintaining existing entitlements. Proposed modifications include converting the commercial space into community-serving resident amenities and reducing parking to improve feasibility and compliance with State affordable housing financing requirements.
The project’s location offers exceptional access to transit, services, and employment centers. It is situated in San Pablo’s transit-friendly downtown corridor, near regional employment in Berkeley, Oakland, and San Francisco, and is well served by AC Transit routes, BART and Amtrak connections, and major freeways including Interstate 80. These characteristics make the project highly suitable for transit-oriented development and competitive for State funding programs such as the Affordable Housing and Sustainable Communities (AHSC) Program, which was discussed extensively in recent internal coordination with CDP, including AHSC grant internal mtg.
The project will include a robust resident services program operated by a nonprofit partner, providing on-site services at no cost to residents. These services are tailored to support long-term housing stability and include financial education, employment assistance, youth and family programming, mental health and wellness activities, community-building events, and individualized support from an onsite Resident Services Coordinator. Proposed outcomes include improved access to local resources, stronger social networks, improved health and wellness, and sustained housing stability.
Sustainability is a core component of CDP’s development model. The project is being designed to achieve at least LEED Gold certification through an all-electric building approach, high-performance building envelope, rooftop solar photovoltaic system, high-efficiency HVAC and ventilation systems, low-flow plumbing fixtures, and the use of non-toxic, health-forward building materials. These strategies reduce long-term operating costs, address climate and resilience goals, and create healthier indoor environments.
To finance the development, CDP proposes a multi-layered capital stack that includes 4% Low-Income Housing Tax Credits (LIHTC), tax-exempt bonds through CDLAC, and a joint AHSC application submitted in partnership with the City. A local funding commitment significantly strengthens the competitiveness of the upcoming May 2026 AHSC application, a point reiterated in developer correspondence, including Re: Community Development Partners Funding Application - Downtown San Pablo Project.
CDP is requesting an $3,000,000 City funding contribution from our Low and Moderate Income Housing Asset Fund (LMIHAF), structured as a 55-year, 3% simple-interest residual receipts loan consistent with HCD’s Uniform Multifamily Regulations (UMRs). Repayment would begin after repayment of the deferred developer fee, with 50% of available cash flow applied toward repayment of soft financing sources on a pro rata basis. A City funding commitment by April 27, 2026, is required for CDP to submit a timely and compliant AHSC application.
This funding commitment balances the need to support a transformational downtown affordable housing project with the City’s responsibility to maintain sufficient liquidity for other programs and housing initiatives, consistent with internal fiscal evaluations.
This investment will significantly enhance the City’s ability to leverage more than $13 million in State AHSC funds, additional tax-exempt bond financing, and federal tax credits, resulting in a high-quality, sustainable affordable housing project that directly fulfills multiple City planning and policy objectives.
FISCAL IMPACT
Based on updated LMIHAF accounting provided by staff on April 2, 2026, the estimated available balance after deducting previously approved loan commitments for the Danco Phase II and Novin projects is approximately $4,329,715. The proposed $3,000,000 funding commitment for the Downtown San Pablo Affordable Housing Project at 13717 San Pablo Avenue would reserve a portion of this remaining balance from Fund 250 (250-1741-45400) for future use pending negotiation and Council approval of a formal loan agreement. The action maintains a prudent reserve of LMIHAF Fund 250 resources to meet additional obligations and planned activities, including the annual replenishment requirement for the SPLASH program (estimated at $383,887 for FY 2024-25). Adoption of the Resolution would enable the project to proceed with a competitive AHSC application, attract substantial State funding leverage, and support the City’s goals of expanding affordable housing development while preserving sufficient fund liquidity for other housing needs and unforeseen contingencies. Any future request for loan approval or disbursement will return to Council for separate consideration.
ATTACHMENTS
Att A - LSA Resolution