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Staff: Newark finalized transfer and leaseback for 59-unit SAHA family housing; state funding decision expected in August
Summary
City staff reported that transfer of the site to the city and leaseback to Satellite Affordable Housing Associates (SAHA) is complete; the project has submitted financing applications to the California Department of Housing and Community Development with awards expected in August and December.
City staff told the Community Development Advisory Commission that key financing milestones have been completed for a 59-unit family affordable housing project at 6347–6375 Thornton Avenue, and that the project now awaits state funding decisions.
Michael Kuhlmeier said the city released a notice of funding availability in June 2022; in January 2023 the commission recommended a loan of up to $12,000,000 from the city’s affordable housing impact fee fund to Satellite Affordable Housing Associates (SAHA). The City Council later authorized the loan. In February, the city agreed to take title to the project site and lease it back to SAHA to improve the project's competitiveness for state funding; staff said that transfer and associated leaseback agreements were finalized in April.
Staff reported the Planning Commission has approved entitlements for a 59-unit affordable housing development across from the Newark Pavilion and said more than half the units will be two- or three-bedroom units, qualifying the project as a "large family" development under program rules. The loan authorization included up to $4,300,000 available for predevelopment costs such as acquisition, architecture, engineering and environmental work.
Kuhlmeier said SAHA submitted a financing application to the California Department of Housing and Community Development (HCD) for approximately $18,000,000. HCD is expected to announce awards in August; if the application is successful, SAHA would submit a final financing application in September with awards in December. Staff said the earliest possible construction start would be spring 2026, with an anticipated opening in 2028, consistent with the city's loan agreement timetable.
Commissioners asked about how units are counted toward regional housing goals (RHNA); staff said the city reports building permits and completed units in its annual progress reports to HCD. Commissioners also asked if the senior housing project on Timber has Newark resident preference; staff said county Measure A1 funding supporting that senior project includes a preference for Newark residents.
No commission action was required on the SAHA update; the item was presented for information and discussion.
