Agda Pkt 2025.11.24 Joint SA PFA

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Page 10 of 12 depending on each person’s individual program plan, a resident would be supported by an Independent Living Skills trainer, a job coach or a day program if unemployed, and other services— all funded by the Golden Gate Regional Center and mostly provided offsite with little or no parking or traffic impact. Financing To effectuate the creation of these 38-units, Greystar and HIP Housing are proposing to partner in an innovative cross-sector collaboration and are requesting that the Impact Fee from the South Main Project, otherwise due and payable to the City, be waived in lieu of: (1) Greystar’s investing of the equivalent of the total impact fee otherwise owed to the City being used towards the development of 39-unit complex to be constructed at 1304 El Camino Real, Redwood City; and (2) be subject to recordation of an affordable housing agreement, restricting 38 of the 39-apartment units, to qualifying extremely low to low-income households for a term of 55 years. The current estimate for the Impact Fee is approximately $11,000,000 and Greystar is in contract to purchase 1304 El Camino. If the City approves the proposed waiver of the Impact Fee, Greystar commits to applying the housing impact fee towards the development of Parcel F. The remaining gap financing will be filled through private financing and the use of Tax Credit Equity as administered through the California Tax Credit Allocation Committee (TCAC). There will be no public funds used in this project. HIP Housing has successfully applied and received three (3) tax credit awards which include Redwood Oaks in 2000 and in 2018 as a resyndication project, and in 2014 for Edgewater Isle Senior Property in San Mateo. HIP Housing manages an extensive portfolio of tax credit projects. Their property management division is led by Steven, McDonald, who has managed 21 tax credit projects over his career and has been with HIP Housing since 2004. Additionally, Greystar and HIP Housing have retained David Allen of Trestle Development as Parcel F’s affordable housing finance consultant. David has 14 years of experience in the industry and has successfully applied and received tax credits for 34 total projects comprising of nearly 2,000 units through the years. Case for Impact Fee Alternative Use Impact fees are a tremendous tool for generating funds that help sustain healthy communities, but they can also be challenging to administer and difficult for developers to access. This is especially true when applied to affordable housing. NOFAs, vetting and approving projects, the design and entitlement processes, access to land, and coordinating leveraged financing can mean years of waiting before new housing can be brought online. Meanwhile growth in and around Redwood City has led to an increase in both housing demand and housing cost. It has also attributed to the displacement of longtime residents and lower paid local workers. The need for housing is now but the use of impact fees for affordable housing can be a long and labor-intensive prospect. By using the impact fee for the 39-unit development as seed money, Greystar will be able to move very quickly with the development of Parcel F. The goal is to develop it alongside its South Main Project. Having identified the land and having a purchase agreement in place provides the site control which will accelerate the use of their $11,000,000 into the new deed restricted affordable housing units. Directing the total amount of the Impact Fee otherwise payable to the City towards the Parcel F will not only put these funds to immediate use, it also provides Greystar with the critical leverage needed to access additional financing from TCAC and a private lender. It efficiently adds 38-units to the pool of available affordable housing in Redwood City, which as new units, will be applicable to the City’s RHNA goals. HIP Housing benefits from the property management contract and small percentage of developer and annual income but most exciting, this project once again showcases the kind 8.B. - Page 44 of 120 207