Grant Agreement B-23-CP-MA-0673 — File 25-0100

FY 2023 COMMUNITY PROJECT FUNDING GRAJ'ff AGREEMENT NO. B-23-CP-MA-0673 ARTICLE IX. HUD Contact Information Except where this Grant Agreement specifically states otherwise, all requests, submissions, and reports the Grantee is required to make to HUD under this Grant Agreement must be made in writing via email to CPFGrants@hud.gov. This agreement is hereby executed on behalf of the Grantee and HUD as follows: GRANTEE City of Somerville (Name of Organization) Katjana Ballantyne, Mayor HUD BY: (Typed Name and Title of Authorized Official) \I \I \2--oz._ (Date) Nadab Bynum, Acting Deputy Assistant Secretary for Economic Development (Date) Page 10 NADAB BYNUM Digitally signed by NADAB BYNUM Date: 2024.07.01 09:46:04 -04'00'

See Narrative after page 21.

See Budget after page 23.

1 Project Narrative Grant Number B-23-CP-MA-0673 Grantee: City of Somerville UEI: KV62KX4QF3N8 Grant Amount: $2,400,000.00 Project Name: Clarendon Hill Housing and Transportation Equity Project Project Address: 34 North Street, Somerville, MA 02144 Purpose: The City of Somerville is redeveloping the 216-unit, 1940s-era Clarendon Hill Public Housing Complex into a 570-unit mixed income neighborhood. The project design includes physical traffic calming treatments to improve safety outcomes for all road users, with emphasis on people walking, biking, and using mobility assistance devices. It will improve residents' physical access to the surrounding community--creating an equitable neighborhood out of an isolated housing development--while allowing safe access to the large, green, open space at the Mystic River Reservation across the street. Need: The Clarendon Hill Housing and Transportation Equity Project supports vast improvement in the quality and safety of affordable homes at Clarendon Hill, transforming a 70+ year old public housing development into an ethnically, linguistically, and economically diverse neighborhood that incorporates community open space and a wide variety of amenities at a time when Somerville market rents are becoming unaffordable, even for moderate-income families. Designed for young, single returning veterans of WWII, the existing homes at Clarendon Hill are crumbling, poorly ventilated, and completely unsuited to the needs of families, or to 21st century technology-reliant living. The project is replacing all 216 deeply affordable public housing units and introducing increased density with new market rate and moderate-income units to sustain and strengthen the original Clarendon Hill community. All current residents of the original 216 affordable units have the right to return to Clarendon Hill when the project is complete, at the same affordable rents. The project is also creating 354 new mixed-income units to reduce Somerville’s affordable housing deficit and facilitate connections with the wider Somerville community. Somerville's affordable housing developments, all built at an earlier time, are located around the city's perimeter. By creating a mixed-income neighborhood where an isolated housing development currently stands, this project supports a more economically just approach to serving low- and moderate-income city residents. The project will also redevelop the surrounding roadways and streetscapes to safely connect residents at Clarendon Hill with the larger community, including other residential neighborhoods, commercial areas, and greenspaces. The streets adjacent to the buildings are wide, high-speed, and have complicated intersections, all of which make it dangerous and stressful for Clarendon Hill residents to leave their immediate surroundings and join with other community residents or enjoy community resources. Project Scope: The proposed redevelopment was initiated in 2016 with a series of resident and community-wide meetings to gather input and feedback and a feasibility study period with the

2 Massachusetts Department of Housing and Community Development (DHCD). Over the past several years, the project team secured a comprehensive permit under MGL Chapter 40B (September 2020), and obtained financing commitments from lenders, investors, DHCD, LIHTC, and the City of Somerville. The project has garnered broad-based support from current residents, their surrounding neighbors, and other community members. The redevelopment entails demolition of nine existing buildings and new construction of 591 total units on the site to provide replacement of all public housing units, 80 new affordable units, and market rate housing. Under this structure, the value generated by the market rate units will cross-subsidize the construction of the affordable units. The project will be completed in phases. Phase 1 A, which began in May 2023, is creating 168 affordable units in Building E. It will be followed by the creation of 331 mixed income units in Buildings A & B (Phase 1 B) and 92 affordable units in Building D and Townhouses (Phase 2). The full redevelopment will include 3 new streets, a new park, and 9 total buildings. Current residents have the right to return and will be temporarily relocated during construction, continuing to pay the same rent during relocation and upon return. The Community Project Funding (CPF) grant award will be utilized in Phase 2 of the project. The Phase 2 design includes physical traffic calming treatments to improve safety outcomes for all road users, with particular emphasis on people walking, biking, and using mobility assistance devices. Somerville will transform the high-speed, multi-lane rotary intersection at Alewife Brook Parkway and Powder House Boulevard to create a slower, safer "T" intersection. We will also institute a "road diet" treatment of Alewife Brook Parkway to reduce crossing distances and increase safe access to public open space at the Mystic River Reservation opposite the new complex. Because Clarendon Hill is surrounded by three busy, high-speed streets, these roadway improvements will make possible the calm, safe, neighborhood environment envisioned by the City and Clarendon residents, who have been very involved in the project design. It will also improve residents' physical access to the surrounding community--creating an actual neighborhood instead of an isolated housing development, and supporting equitable treatment of residents of all economic backgrounds--while allowing safe access to the large, green, open space at the Mystic River Reservation across the street. Construction elements for the transportation improvements include permanent traffic calming and pedestrian safety infrastructure, green stormwater infrastructure, sidewalk reconstruction and accessible curb ramps, separated bike lanes, and roadway repaving and traffic signal improvements. The total cost of Phase 2 is $70,250,439. The CPF funding of $2,400,000 will be used for street grid and mobility infrastructure improvements related to the reconstruction of roadways surrounding the Clarendon Hill Public Housing Complex. Other Phase 2 funding includes $32,639,555 in Low-Income Housing Tax Credit (LIHTC) equity, $6,254,000 from DHCD, $5,000,000 from the City of Somerville, and $2,100,000 in MassHousing Workforce funding.