Belmont loaning $2.5M for 125 new units of affordable housing

According to a letter from Santa Clara real estate developer ROEM Corporation, the project applicant, the money is necessary to complete the development. According to ROEM, it is also applying for $10 million from San Mateo County through its affordable housing fund. ROEM said to get county funding, it must also receive financial support from the city. Given the affordable housing need and the difference the money can make in starting the project, the council unanimously approved the loan at its Sept. 27 meeting. City staff will now negotiate a loan funding agreement. The council also agreed not to have development impact fees exceed $18,000 per housing unit, for $2.25 million. Impact fees offset public service needs caused by the development.

The city will use affordable housing mitigation fees and affordable housing in-lieu fees to fund the $2.5 million loan for ROEM. According to city staff, the loan is not a request against the city’s general fund but comes from city funding it can only use for affordable housing projects. The loan term would likely be around 55 years. A city review found Belmont has enough funding for the loan and other affordable housing projects. The city already has two existing affordable housing loan agreements, one related to the Firehouse Square project, with a low annual interest rate of around 3%, according to staff. The future loan has similar interest rates. The loan will also help ROEM apply for low-income housing state tax credits, allowing it to score additional points during the state review process.

The project is a crucial contributor for Belmont to meet its current 2015 to 2023 RHNA numbers for low and extremely low units, 63 and 116, respectively. RHNA numbers are mandated by state housing law and require a city to plan for the development of additional housing units and remove constraints to development, increasing housing opportunities and, in turn, creating affordable housing units. City staff said Belmont was not meeting its RHNA number requirement for the current cycle around low-income units. The ROEM project would represent more than 50% of the low and very low-income requirements for the current cycle. The city will see a significant increase in housing units requirements in its 2023 to 2031 cycle.

The Belmont Avenue project calls for 36 units for low-income households and 19 for formerly homeless veteran tenants. The site is on two parcels, around 1.46 acres, around half a mile from the Belmont Caltrain station. The 52 one-bedroom units are 540 square feet, the 40 two-bedroom units at 815 square feet, and the 33 three-bedroom units at 935 square feet. The Bel Mateo Hotel would be demolished. There will be a 6,500-square-foot outdoor recreation area, fitness center, resident club room, homework room, resident services office, a children’s play structure and 152 parking spaces. The development will also include a traffic median installation in El Camino Real to limit left turns from Belmont Avenue to reduce delays and improve safety. The council in May approved the project, calling it needed to ensure essential workers can stay local and develop near mass transit.

curtis@smdailyjournal.com

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