U.S. Department of Housing and Urban Development 451 Seventh Street, SW Washington, DC 20410 www.hud.gov espanol.hud.gov Environmental Assessment Determinations and Compliance Findings for HUD-assisted Projects 24 CFR Part 58 Project Information Project Name: Midway Village Redevelopment Project Responsible Entity: County of San Mateo, Department of Housing, 264 Harbor Blvd. Bldg. A, Belmont CA 94002 Grant Recipient (if different than Responsible Entity): Housing Authority of the County of San Mateo, 264 Harbor Blvd. Bldg. A, Belmont CA 94002 State/Local Identifier: Midway Village, City of Daly City, California Preparer: Stantec Consulting Services Inc. on behalf of County of San Mateo, Department of Housing Certifying Officer Name and Title: Raymond Hodges, Director, County of San Mateo, Department of Housing Consultant (if applicable): Stantec Consulting Services Inc. (Stantec) Direct Comments to: Raymond Hodges, Director, County of San Mateo, Department of Housing 264 Harbor Boulevard, Building A Belmont, CA 94002 Phone: 650-802-3300 Email: [email protected] Barbara Deffenderfer 264 Harbor Boulevard, Building A Belmont, CA 94002 Phone: 650-802-3300 Email: [email protected] Supporting documentation for this Environmental Assessment is found in the Sustainable Communities Environmental Assessment (SCEA) prepared for this Project (City of Daly City 2020; available online at https://ceqanet.opr.ca.gov/2020049013/2) and supporting documents as cited in the SCEA or in the analysis below. Project Location: The Project is located within the City of Daly City, California in San Mateo County and is approximately 15 acres in size (Figure 1). The Project site is bound by Schwerin Street to the west and Martin Street to the south, with Midway Drive running directly through the center of the Project site (Figure 1). Description of the Proposed Project [24 CFR 50.12 & 58.32; 40 CFR 1508.25]: The proposed Project would include redevelopment of the Midway Village area to provide mixed-use development consisting of 555 residential units, 735 parking spaces, a child-care facility, a community center, office space for property management and other ancillary services, a revised street system, and recreation facilities. Other ancillary improvements would include landscaping, water and wastewater line improvements, and pedestrian walkways. One city park, Bayshore Park, would be relocated to a different location within Project limits (Figure 2), rough-graded, and returned to the City of Daly City. The existing park would be closed beginning at the start of Phase 1 of Project construction (anticipated in 2021) and would be relocated and reopened during Phase 4 of the Project (no later than 2027). The proposed 555 residential units would consist of 528 units for low-income families. The remaining 27 units would consist of 7 units for onsite property managers and the remaining 20 units would consist of townhomes to be sold at a below market rate. Building heights would vary between one and four stories, with a maximum height of 60 feet. The residential units would consist of 92 studio apartments, 116 one-bedroom apartments, 190 two-bedroom apartments, 133 three-bedroom apartments, and 24 four-bedroom apartments. The proposed Project would be constructed in four phases, and would include the demolition of existing structures, the relocation of current residents, and the relocation of the child-care facility onsite as each phase is underway. Table 1 provides a summary of activities for each phase of the Project. Table 1 – Summary of Project Activities by Phase – Midway Village Redevelopment Project Phase Activity Demolition of San Mateo County Housing Authority Demolition offices only 29 studio apartments 24 one-bedroom apartments Phase 1 56 two-bedroom apartments Construction 30 three-bedroom apartments 8 four-bedroom apartments Garage A Demolition of 60 residences Demolition 60 families relocated to Phase 1 27 studio apartments Phase 2 37 one-bedroom apartments 32 two-bedroom apartments Construction 28 three-bedroom apartments 4 four-bedroom apartments Bayshore Child-Care Center Demolition of existing child-care center Demolition Demolition of 46 residences Phase 3 46 families relocated to Phase 2 Construction 18 studio apartments 27 one-bedroom apartments 49 two-bedroom apartments 40 three-bedroom apartments 6 four-bedroom apartments Community center Garage D Demolition of 44 residences Demolition 44 families relocated to Phase 3 18 studio apartments 28 one-bedroom apartments Phase 4 43 two-bedroom apartments Construction 25 three-bedroom apartments 6 four-bedroom apartments Park rough-graded and returned to the City of Daly City Park redeveloped by City of Daly City Total Residences 555 It is anticipated that the Project would be developed over a six-year period; however, based on market conditions, phasing could extend up to 15 years. For the purposes of this analysis, a conservative approach concentrating the construction into a six-year period was used. Each of the four phases of development would include demolition of a portion of the existing buildings onsite followed by new building construction. Existing tenants would only need to move once during redevelopment and would be relocated directly into their new units. Construction of the new child- care facility would occur early in the development process (Phase 2) to ensure that the students are relocated and settled as early as possible in the process. In addition to residences, the Midway Village area currently consists of 172,500 square feet (sf) of residential, office, and child-care space. The total square footage under the proposed Project would increase to 881,600 sf of mixed residential, office space, common space, a child-care facility, and a community center. The office space is included within the community center space. Statement of Purpose and Need for the Proposal [40 CFR 1508.9(b)]: The purpose of the Project is to increase the number of affordable low-income housing units within the existing Midway Village area; the Project is needed to address a local and regional shortage of low-income housing within San Mateo County. Currently, there are a total of 150 residential units located within the existing Midway Village area, which is well below the capacity allowed for High-Density Residential (R-HD), under which Midway Village is currently designated. The City of Daly City has experienced significant growth in the decades immediately following World War II. The City’s population quadrupled between 1950 and 1970 with the construction of the Westlake and Serramonte subdivisions. By 1990 the population was approximately 90,000. The United States census reported the City’s population as 101,123 in 2010. Although population growth is anticipated to continue, it is anticipated to do so at a modest rate, reflecting the fact that the City is largely built out (City of Daly City 2013 and 2015 as cited in the City of Daly City 2020). According to growth estimates in the Daly City General Plan, the City of Daly City can expect to add about 5,265 more residents between 2010 and 2030. Based on past development trends, regional growth forecasts, and assumptions about future growth, the City will accommodate approximately 106,388 residents at buildout, an increase of about 5.2 percent over the 2010 Census-determined population of 101,123. Over a 20-year period, this represents an annual growth rate of 0.3 percent (City of Daly City 2013, 2015 as cited in City of Daly City 2020). The City’s housing stock composition largely mirrors that of San Mateo County, with single- family homes being the majority at 65 percent. Multi-family housing represents all but 2 percent of the remaining housing stock, which is comprised of mobile homes. The residential growth rate in the City has decreased significantly since the 1980s and 1990s, when 10-year growth rates were 8.5 percent and 7 percent, respectively. The growth rate between 2000 and 2010 was 1.5 percent. Comparatively, this is half the growth rate of San Mateo County as a whole, and the smallest growth rate in the Bay Area. The primary reason for the limited growth rate in the City is the relatively limited supply of developable land, given the lack of parcels that are large enough for substantial development projects (City of Daly City 2013 and 2015 as cited in City of Daly City 2020). Existing Conditions and Trends [24 CFR 58.40(a)]: Currently, Midway Village consists of 150 residential units, 223 parking spaces, a child-care facility (Bayshore Child-Care Center), open space, an existing street system, and office space for County of San Mateo, Department of Housing. Bayshore Park is currently located immediately northeast of the Midway Village area (Figure 1). The existing Midway Village is located in an urban area and is currently developed with 3 one- story and 34 two-story structures. Most of these structures include residential dwelling units with additional structures for a child-care facility and a play area. There are currently 477 residents living on the Project site and 109 students enrolled at the Bayshore Child-Care Center, which is operated by Peninsula Family Services. The Bayshore Child-Care Center is a daytime-only facility that operates from 7 AM to 6 PM with 24 employees. There are also seven employees at the San Mateo County Housing Authority offices, which are located on the Project site at the end of Midway Drive. Bayshore Park is currently 3.5 acres in size and includes an open grass area, play structures, and basketball courts. There are six existing roadway courts in the Midway Village area including Martin Court, Brandon Court, Jennifer Court, Mary Court, Midway Court, and Cypress Lane. These areas have clusters of existing multi-family units and marked parking spaces. Sporadic landscaping also occurs throughout the development with a mix of trees, shrubbery, and grasses.