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6.J.- Page 2of13 escalating cost of construction over the last few years, each new affordable housing unit typically requires a subsidy of several hundreds of thousands of dollars. In 2018, ROEM Development Corporation ("ROEM"), the sponsor of the 353 Main Street Apartments, L.P. (the "Partnership") the limited partnership that will own and operate the project, received Planning Commission and City Council approval for a new 125 -unit development to be located at 353 Main Street. The originally -approved development included 19 affordable units. After discussions with the City and the San Mateo County Department of Housing, the applicant (ROEM) decided to convert all the units in the development to affordable units. The development would include 61 low-income units and 63 extremely low-income units with one unit reserved for an on-site manager. Relatively few very low and extremely low income units have been produced to date, so these units would be important additions to the City's affordable housing stock. The 63 extremely low units (comprised of studios, one bedrooms, and two bedrooms) would be rented to residents making 30% of the area's median income (AMI). Table 1 353 Main Street Project Per Unit Affordability Unit Tvae No. of units % of AMI SRO/Studio 9 30% SRO/Studio 1 80% SRO/Studio 5 30% 1 Bedroom 25 30% 1 Bedroom 27 80% 1 Bedroom 5 80% 2 Bedrooms 24 30% 2 Bedrooms 28 80% In order to convert all of the units in the project to be affordable units, City, County, and tax -credit funding is needed. ROEM requested and received a $3.5 million soft commitment from the City Council on February 11, 2019 (Attachment A) along with approximately $7.0 million from the San Mateo County Department of Housing. The City did not have sufficient funds available in February 2019 to make a firm commitment of funds to the project. The City's $3.5 million soft commitment was covered by a five-year bridge loan from the Housing Endowment and Regional Trust (HEART) using San Mateo County housing funds. On January 17, 2012, and pursuant to Health and Safety Code Section 34173, the City Council declared that the City would act as successor agency (the "Successor Agency") to the dissolved City of Redwood City Redevelopment Agency effective February 1, 2012, and elected to retain the housing assets and functions previously performed by the former agency pursuant to Health and Safety Code Section 34176(b)(1). As required under Health and Safety Code Section 34176, the City established the Low and Moderate Income Housing Asset Fund, which currently has deposits totaling $2,240,324 of Low and Moderate Income Housing Asset Funds. Page 2 of 5 MIL City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org 346