To: Mayor and City Council
Title: 335 Pierce Road – request for a conditional commitment pursuant to the Housing Commission funding recommendation
Dear Menlo Park City Council Members,
MidPen Housing responded to the City NOFA released on November 18, 2020 with an affordable homeownership concept at our 335 Pierce Road property. We presented our proposal to the Housing Commission and received a recommendation for award on March 3, 2021. We would like to request that our 335 Pierce Road homeownership proposal be included as an agenda item and be considered at Menlo Park’s upcoming City Council meeting on October 12.
MidPen acquired the 335 Pierce property (a four plex and vacant lot) in 2016. In our response to the City’s NOFA, we proposed the redevelopment of 335 Pierce into 12 attached single
family homes targeted to low-income homebuyers on land that would be dedicated to a locally controlled, Community Land Trust (CLT). After MidPen first acquired the site, we held a community meeting where we took feedback from the community about this opportunity. The feedback at this meeting was that there was strong community interest in pursuing an affordable homeownership model on this site.
We are energized by this exciting opportunity, but there are two elements that are critical for MidPen to continue exploring this CLT homeownership approach in earnest. First, we would ask that the City support a conditional commitment of housing funds for $3.6M, with an initial disbursement of $200,000 of this amount. This nominal initial predevelopment disbursement would fund necessary exploratory work and cover the community outreach, organizational and legal costs of establishing a CLT. Second, we would like to work with the City to develop a plan to rezone this site for the use of homeownership within a reasonable amount of time, which we believe may be most efficiently handled through the City’s current Housing Element Update process.
Homeownership is an important asset-building opportunity for families and one of the few paths to building generational wealth and financial security for families in Belle Haven. We believe that this Community Land Trust approach to homeownership for 335 Pierce Road presents a unique opportunity to provide the benefits of homeownership to the Belle Haven community through an affordable, limited equity homeownership model. Homeowners at 335 Pierce Road will earn equity during their tenure of ownership, an opportunity that will not only benefit the first buyers but also be available in perpetuity to future purchasers of these homes.
Our proposed project maximizes the potential public benefit of a compact infill site through the delivery of 12 affordable two-bedroom townhomes for low-income families (earning up to 80% AMI). We would work collaboratively with Belle Haven leaders and civic organizations to establish the CLT with direct representation from Belle Haven residents on the CLT Board. MidPen’s role would be as the developer of the affordable homes but would have no controlling interest in the CLT. Once reimbursed by the City for MidPen’s cost to acquire the land, MidPen would dedicate the land to the CLT prior to the sale of the first home. MidPen would work collaboratively with the community every step of the way to realize three goals: creating affordable homeownership, building local capacity and control over community assets, and strengthening the community through investment in affordable homeownership.
We value our partnership with the City of Menlo Park and are excited about this unique opportunity to create a scalable model for homeownership and advance affordable ownership in Belle Haven.
Yours truly,
Jan M. Lindenthal
Chief Real Estate Development Officer
MidPen Housing Corporation
__________________________________________________
Jan M. Lindenthal | Chief Real Estate Development Officer
MidPen Housing
303 Vintage Park Drive, Suite 250, Foster City, CA 94404
t. 650.356.2919 c. 650.465.9864
[cid:image001.jpg@01D7ABD9.1335B9E0]
NOTE: In an effort to slow the spread of Covid-19, MidPen offices are closed until September 7, 2021. During this time, all MidPen Development staff are working remotely from home. MidPen continues to provide essential services at all of our communities to support our residents. Please stay healthy and safe!
