To: Board of Supervisors
From: John Kopchik, Director, Conservation and Development
Report Title: Approval of Affordable Housing Finance Committee Recommendations to Award In-Lieu, Measure X Housing, and Summer Lake Affordable Housing Funds
☐Recommendation of the County Administrator ☒ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE the Affordable Housing Finance Committee (AHFC) FY 2026/27 recommendations for the allocation of $1,216,295 in Inclusionary Housing Ordinance In-Lieu funds, $7,880,690 in Measure X Housing funds, and $913,438 in Summer Lake Affordable Housing funds.
FISCAL IMPACT:
In-Lieu fees are approved and conditioned as part of a project’s land use entitlements and paid at the time of building permit issuance. Measure X funds are part of a countywide, 20-year ½ cent sales tax increase approved by Contra Costa County voters on November 3, 2020. The Summer Lake Affordable Housing Fund was created through a Transition Agreement between the County and the City of Oakley pertaining to the annexation of the East Cypress Corridor Boundary Reorganization Areas. As part of the Transition Agreement, the County and the City of Oakley agreed that an affordable housing fee of $3,333 be charged for each new home built that was part of a housing development known as Summer Lakes, which was approved by the County prior to annexation by the City of Oakley. The Summer Lakes fee is collected by the City of Oakley and transferred to the County.
BACKGROUND:
In-Lieu Funds: Every residential project in unincorporated Contra Costa consisting of five or more units or more is subject to the County’s Inclusionary Housing Ordinance (IHO), Chapter 822-4 of the County Ordinance Code. The IHO promotes affordable housing by requiring 15 percent of units in a housing development to be affordable units. Alternative methods of compliance include the payment of a fee in-lieu of building affordable units on-site, building off-site, or any other feasible alternative. The in-lieu fees are approved and conditioned as part of the land use entitlements, paid at the time of building permit issuance, and deposited in a fund with DCD. These funds may only be spent on new construction of affordable housing within unincorporated Contra Costa County. There is $1,216,295 of In-Lieu Funds available to allocate.
Measure X Housing Funds: Measure X is a countywide 20-year, ½ cent sales tax approved by Contra Costa County voters on November 3, 2020. Collection of the tax began on April 1, 2021. The ballot measure language stated that the intent of Measure X is “to keep Contra Costa’s regional hospital open and staffed; fund community health centers, emergency response; support crucial safety-net services; invest in early childhood services; protect vulnerable populations; and for other essential county services.”
On November 16, 2021, the County Board of Supervisors approved the allocation of Measure X funding to establish a new funding source for housing-related activities, now termed the Measure X Housing Fund (MX Housing Fund). Eligible uses for this portion of the Measure X Housing Funds include:
• Affordable housing for populations earning up to 80 percent Area Median Income (AMI), with a focus on ≤50 percent AMI.
• Acquisition, pre-development, construction, rehabilitation, and operating and reserve funds.
• Innovation pilot programs and capacity building technical assistance for affordable housing activities (acquisition, pre-development, construction, rehabilitation, and operating and reserve funds).
• Grant writing for affordable housing activities (acquisition, pre-development, construction,
• rehabilitation, and operating and reserve funds).
The available balance of Measure X funds is $7,880,690.
Summer Lake Affordable Housing Funds: The Summer Lakes Project was approved by the County prior to the annexation by the City of Oakley. As part of the Transition Agreement related to the City of Oakley’s annexation of the Cypress Corridor Boundary Reorganization Areas, the County and the City of Oakley agreed that the $3,333 affordable housing fee charged for each new Summer Lakes home would be collected by the City of Oakley and transferred to the County. The Transition Agreement requires that the funds be used in east Contra Costa County and that the County consider reserving 20 percent of the fees for affordable housing development in the City of Oakley. As of 2026, the Summer Lake Affordable Housing (SLAH) available balance is $913,438 for affordable housing projects located in east Contra Costa County.
Notice of Funding Available and Request for Proposal Process: The affordable housing Notice of Funding Availability (NOFA) was published on September 12, 2025, and the application via a Request for Proposals (RFP) became available on October 14, 2025. The NOFA/RFP notice was published in all editions of the East Bay Times and posted on the County’s Department of Conservation and Development (DCD) website soliciting applications for the production, preservation, or acquisition of affordable housing throughout the County. DCD staff hosted a “Technical Assistance Meeting” to provide information to prospective applicants on the overall application process on October 22, 2025. DCD staff also held virtual “office hours” on four separate occasions in the months of November and December 2025 to provide additional technical assistance as needed. Twenty-two applications were submitted by the December 11, 2025 application due date, one of which has since been withdrawn. After reviewing and analyzing the applications and conducting interviews with the applicants, DCD staff recommended various affordable housing funding sources and referred those recommendations to the County’s Affordable Housing Finance Committee (AHFC), the advisory committee to the Board of Supervisors that reviews staff’s recommendations on affordable housing financing matters.
The AHFC held a public meeting on April 29, 2026, to consider staff recommendations for all sources, including In-Lieu Funds, Measure X Housing, and SLAH funds. Following a discussion on each application, the AHFC recommended the following allocations for consideration by the Board of Supervisors (the AHFC recommendations of federal funds are being considered under a separate action for the May 19, 2026 agenda):
Rumrill Commons (San Pablo, BOS District 1)
• Sponsor/Developer: Novin Development Corp.
• Project and Construction Type: New Construction Permanent Rental Housing
• Primary Population Served: Family Housing
• Affordable Units: 39
• Total Project Cost: $38,560,796
• Previous Allocation: $1,650,000 PLHA
• Funds Requested:
o In-Lieu: $0
o Measure X: $2,500,000
• AHFC Recommendations:
o In-Lieu: $0
o Measure X: $2,500,000
• AHFC Recommended Conditions of Approval (See Attachment B - Housing Staff Report for more information):
o All other financing commitments secured by December 31, 2027.
o FY 2026/27 Measure X funds committed, as evidenced by an executed loan, by June 30, 2028.
949 Moraga Road (Lafayette, BOS District 2)
• Sponsor/Developer: Satellite Affordable Housing Associates & Sunflower Hill
• Project and Construction Type: New Construction Permanent Rental Housing
• Primary Population Served: Individuals with Intellectual and Developmental Disabilities
• Affordable Units: 47
• Total Project Cost: $54,463,936
• Previous Allocation: Not applicable
• Funds Requested:
o In-Lieu: $0
o Measure X: $6,111,718
• AHFC Recommendations:
o In-Lieu: $0
o Measure X: $5,380,690 - Construction
• AHFC Recommended Conditions of Approval (See Attachment B - Housing Staff Report for more information):
o All other financing commitments secured by December 31, 2027.
o FY 2026/27 Measure X funds committed, as evidenced by an executed loan, by June 30, 2028.
Orbisonia Village (Bay Point, BOS District 5)
• Sponsor/Developer: Pacific West Communities, Inc.
• Project and Construction Type: New Construction Permanent Rental Housing
• Primary Population Served: Family Housing
• Affordable Units: 167
• Total Project Cost: $133,191,579
• Previous Allocation: $5,318,337 (25/26 In-Lieu, Measure X, and PLHA)
• Funds Requested:
o In-Lieu: $1,000,000
o Measure X: $0
• AHFC Recommendations:
o In-Lieu: $1,000,000 - Construction
o Measure X: $0
• AHFC Recommended Conditions of Approval (See Attachment B - Housing Staff Report for more information):
o All other financing commitments secured by July 1, 2026.
o FY 2026/27 In-Lieu funds committed, as evidenced by an executed loan, by July 1, 2026, which aligns with the 4 percent tax credit deadline to close escrow and begin construction.
Harbor Pointe (Discovery Bay, BOS District 3)
• Sponsor/Developer: USA Properties Fund, Inc.
• Project and Construction Type: New Construction Permanent Rental Housing
• Primary Population Served: Family Housing
• Affordable Units: 168
• Total Project Cost: $83,158,701
• Previous Allocation: Not applicable
• Funds Requested:
o In-Lieu: $951,440
o Measure X: $1,548,560
• AHFC Recommendations:
o In-Lieu: $216,295 - Construction
o Measure X: $0
o SLAH: $413,438 - Construction
• AHFC Recommended Conditions of Approval (See Attachment B - Housing Staff Report for more information):
o All other financing commitments secured by December 31, 2027.
o FY 2026/27 Measure X funds committed, as evidenced by an executed loan, by June 30, 2028.
Casita Phase II (Byron, BOS District 3)
• Sponsor/Developer: Hijas del Campo
• Project and Construction Type: Manufactured Permanent Rental Housing
• Primary Population Served: Farmworkers
• Affordable Units: 17
• Total Project Cost: $700,000
• Previous Allocation: Not applicable
• Funds Requested:
o In-Lieu: $0
o Measure X: $500,000
• AHFC Recommendations:
o In-Lieu: $0
o Measure X: $0
o SLAH: $500,000 Predevelopment
• AHFC Recommended Conditions of Approval (See Attachment B - Housing Staff Report for more information):
o FY 2026/27 SLAH funds committed, as evidenced by an executed predevelopment loan by June 30, 2028.
o Predevelopment loan terms - 3 percent simple interest with a 5-year term to begin construction on the project. If the project does not begin construction within the 5-year term, the outstanding predevelopment loan (principal and interest) would be due and payable back to the County.
In addition, the following attachments are included to summarize the recommendations made to the AHFC on April 29, 2026:
• Attachment A: 4.29.2026 AHFC Funding Allocations Memo
• Attachment B: Housing Application Staff Reports
o Rumrill Commons, San Pablo
o 949 Moraga Road, Lafayette
o Orbisonia Village, Bay Point
o Harbor Pointe, Discovery Bay
o Casita Phase II, Byron
If the Board approves the above-mentioned projects, the project-specific loan packages (legal documents) for each of these projects will return to the Board for approval at later dates when each respective project is ready to enter into legally binding commitments.
CONSEQUENCE OF NEGATIVE ACTION:
Negative Action will prevent these affordable housing developers from moving forward with their projects in FY 2026/27. The applicants would have to wait and apply for funds from the County in next year's funding cycle, which could jeopardize the projects or significantly delay their construction schedules.