Title
Staff Report for Resolution Approving the Issuance of Revenue Bonds by the California Municipal Finance Authority to Finance the Acquisition, Rehabilitation, and Improvement of Las Palmas, a Multifamily Rental Housing Development Owned by Eden Housing
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council conduct a public hearing under the requirements of the Tax and Equity Fiscal Responsibility Act (TEFRA), Section 147(f) of the Internal Revenue Code of 1986, as amended, and adopt a resolution approving the California Municipal Finance Authority (CMFA) to issue revenue bonds for the purpose of financing the acquisition, rehabilitation and improvement of certain facilities for the benefit of LPSL, LP, a California limited partnership.
BACKGROUND
LPSL, L.P., a California limited partnership (Borrower) has requested that CMFA issue and sell revenue bonds in the maximum principal amount of $25,000,000 (the "Bonds") for the purpose of making a loan to the Borrower, to (1) finance the acquisition, rehabilitation, improvement and equipping of a 91-unit affordable multifamily rental housing facility located at 15370 and 15375 Tropic Court, San Leandro, California; and (2) pay certain expenses incurred in connection with the issuance of the Bonds. The facilities will be owned and operated by LPSL, LP, a California limited partnership, or another entity created by Eden Housing, Inc., or an affiliate thereof.
Las Palmas Apartments is owned and operated by the nonprofit developer Eden Housing and represents a larger complex in the City's affordable rental housing inventory. The City approved a federal HOME loan to the property in 1999 that includes a regulatory agreement, which is still in effect, which provides that Eden Housing must maintain the majority of units as affordable housing. Around 1999, the property also received State/federal low income housing tax credits, which also restricted the majority of units as afforda...
Click here for full text