Hallmark House Apartments — February 2020 Update
Building permit has been issued for the reconstruction/repair of the 72-unit Hallmark House Apartment building
The Hallmark House Apartment project, located at 531 Woodside Road, reached a new milestone this week — a permit was issued by the City of Redwood City, paving the way for reconstruction of the 72-unit apartment building.
In addition to a legal dispute between the two property owners, which caused a delay for several years, City building and fire officials were working with the developer to have plans reviewed and submitted for the rebuild. During this period, seeing the process stalling and the blighted property sitting vacant, the City began to cite the property for code violations which amounted to $35,000. This brought the owners back to the table with the City.
Because the original rebuild permits lapsed in 2017, it triggered new state Americans with Disabilities Act (ADA) Adaptability Standards Codes, causing further delays as the property owner decided to redesign the entire building to meet the new ADA code requirements.
As part of its review process, the City hired a structural engineering firm to evaluate the condition of the apartment complex and to provide the City with a structural report. Concurrently, the developer hired a Certified Access Specialist to ensure accessibility and compliance with the ADA.
Despite the aforementioned delays and complexities with the project, on February 10, the City Council unanimously approved the issuance of tax exempt bond financing for the reconstruction of the building. To be clear, this bond issuance does not create a financial obligation for the City; however, the borrower, Hallmark 2017, L.P., will be able to finance the project, in the amount of $25 million, through tax exempt bond proceeds. It’s expected that financing will close by April 2020.
Construction is expected to commence in May 2020 with an anticipated completion date of June 2021.
The affordability of the apartments will continue as before the fire in 2013: 30% of the units will be affordable to very low-income households. The reconstruction plans include 71 one-bedroom units and one studio. Rent for one-bedroom apartments will range between $1,330 and $1,605
For more details about the City’s affordable housing initiatives, go here.
To read the Hallmark Homes Apartment September 2019 blog, go here.
