pages: CityCouncil/2022-05-17.pdf, 9
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CityCouncil | 2022-05-17 | 9 | cost gap can be reduced to roughly $300,000. Councilmember Herrera Spencer stated except for the affordable housing, the units being built are not rentals; the market rate units are for sale; inquired about the rental income. The Community Development Director responded a final determination has not yet been made; stated the units for sale and for rent will be established by the market condition at the time the units come online; the developer is committed to putting a condominium map on every parcel to allow for either option; a final determination will be made as the market shows itself. Councilmember Herrera Spencer stated the determination contradicts an earlier meeting held with staff; rentals would be provided for affordable housing units and market rate units would be available for purchase. The Community Development Director stated that she was referring to the market rate units; the affordable housing units are planned to be for rent. Councilmember Herrera Spencer inquired whether all market rate units will be for sale and not for rent, to which the Community Development Director responded in the affirmative. Councilmember Herrera Spencer stated the plan could change; discussed rental income from affordable housing; inquired the financial guarantee for the affordable housing to be built. The Community Development Director responded there is not a guarantee; stated the terms set a pot of money to supplement associated costs; Phase 1 project has the affordable housing on Block 8 come online first; an experienced developer will be selected with enough time to secure funds; the free land and $50,000 will provide enough to get the project started. Councilmember Herrera Spencer inquired whether there is a reason the proceeds from the market rate units will not be put into a trust that can be used for affordable housing. The Project Manager stated the developer contributed approximately $30,000 per unit for the first phase; $50,000 per unit is an increase from past contributions; the expectation is the construction of affordable housing units will not be fully funded; the contribution helps the affordable housing developer secure future financing in the form of tax credits. The Community Development Director responded the proceeds from market rate being put into a trust would create an impractical environment to proceed with the balance of development; stated funds will need to flow out of the project to the developer as the project moves forward. Councilmember Herrera Spencer inquired whether a contribution of more than $50,000 per unit has been considered; stated the City used to require affordable housing units to be built before any market rate units could be sold; she is surprised that the City is not recommending money to be set aside or another form of guarantee. The Planning, Building and Transportation Director stated Alameda Point is different from the rest of the City; Alameda Point has a 25% affordable housing requirement, the rest of the City has a 15% requirement; projects are structured differently between Alameda Point and the rest of the City; the City is the property owner and project partner at Alameda Point; staff is satisfied and believes the project will work for the reasons outlined by the Project Manager; staff has Regular Meeting Alameda City Council May 17, 2022 9 | CityCouncil/2022-05-17.pdf |