City Council

17. CONSIDERATION OF A SECOND AMENDMENT TO THE DISPOSITION AND\nDEVELOPMENT AGREEMENT (DDA) WITH AMERICAN FAMILY HOUSING FOR A\nPROPOSED 50 UNIT AFFORDABLE HOUSING PROJECT IN DOWNTOWN\nALHAMBRA – F2M19-39, R2M20-40, M2M23-209\nIn November 2020, the City Council approved a DDA with American Family Housing to\nbuild a 50-unit affordable housing project on a City owned parcel currently used as a\nsurface parking lot in the downtown district between 1st and 2nd Streets, south of Main\nStreet between Rick’s and the AT&T building. In January 2022, the City Council approved\na First Amendment to the DDA clarifying 29 public parking spaces. Since then, the City\nhas granted AFH several extensions (first, to November 15, 2022, then to December 30,\n2022, then to August 31, 2023 and finally to November 30, 2023) to obtain all necessary\nfunding for constructing the project. To date, AFH has made several efforts to obtain\nfinancing. In 2022, AFH was awarded 4% tax credits from the State; however, they\nreturned the allocation due to rising construction costs, and applied for larger tax credit\nallocations. In 2023 AFH applied for 9% State tax credits but were not successful in\n9\n12-11-23\nreceiving funding from the State. Moving forward in 2024, AFH’s plan is to reapply for 4%\ntax credit with the State and also partnering with Los Angeles County to increase the\nCounty’s share of funding towards the project. As a result, a Second Amendment to the\nDDA is being presented to update the terms including but not limited to: Time: Extending\nthe DDA financing deadline to 8/31/2024 (if financing is not obtained, City may terminate\nthe DDA.); Partnership: Reassign the partner from National Core to VP Mariposa LLC;\nand, Construction timeline: The construction time frame will be increased from 16 months\nto 20 months. Subsequently, once AFH obtains additional County funding and State Tax\nCredits, a Third Amendment will be brought back for the Council to consider that will reflect\nthe new funding sources and revise the unit counts from 25 units to 35 units of extremely\nlow-income units and from 24 units to 14 low-income units as a result of the funding\nsources.\nRecommended Action: City Council approve a Second Amendment, subject to final\nlanguage approval by the City Manager and City Attorney, to the Disposition and Loan\nDevelopment Agreement (DDA) with American Family Housing (AFH); and, direct staff to\nundertake the steps necessary to finalize the Council’s action, including, but not limited to\nthe execution and recordation of all documents contemplated by the DDA. (M2M23-209)