Title
Adopt a Resolution to Approve the Issuance of the California Municipal Finance Authority Qualified 501(c)(3) Bonds in an Aggregate Principal Amount Not to Exceed $80,000,000 for the Purpose of Financing or Refinancing the Acquisition, Rehabilitation, Improvement and Equipping of Woodchase Apartment Homes Located at 2795 San Leandro Boulevard (for Conversion by a Nonprofit, Step Up Housing, to Primarily Affordable Rental Housing)
Staffreport
COUNCIL PRIORITY
* Housing and Homelessness
SUMMARY
Step Up Housing(the "Borrower") recently requested the City conduct a public hearing under the Tax and Equity Fiscal Responsibility Act ("TEFRA") in connection with the proposed issuance of revenue bonds by the California Municipal Finance Authority (the "CMFA"), a joint exercise of powers authority and public entity of the State of California, in an amount not to exceed $80,000,000, (the "Bonds"), to assist in financing or refinancing the acquisition, rehabilitation, improvement and equipping of a multifamily rental housing project (known as Woodchase Apartment Homes) located at 2795 San Leandro Boulevard (the "Project"). The Borrower is not requesting any City funding assistance for this Project. The City will have no financial or legal liability for the bonds or the Project.
Woodchase Apartment Homes ("Woodchase") currently contain 186 total rental housing units that are all market rate. The bond financing will enable the Borrower to acquire the Project and convert 75%, or 140 units, to long term affordable rental housing for low and very low income households. The remaining 25% of the units will remain market rate.
RECOMMENDATIONS
Staff recommend that the City Council:
1) Conduct the public hearing under the requirements of TEFRA and the Internal Revenue Code of 1986, as amended (the "Code").
2) Adopt the Resolution approving the issuance of the Bonds by the CMFA for the benefit of the Borrower, to provide for the financing of the Project, such adopt...
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