Title
Staff Report for Resolution Approving the Issuance of California Municipal Finance Authority Qualified 501(c)(3) Bonds in an Aggregate Principal Amount Not to Exceed $70,000,000 for the Purpose of Financing or Refinancing the Acquisition, Rehabilitation, Improvement and Equipping of Metro 77 & 85 Apartments Located at 77-85 Estabrook Street, San Leandro, CA (by a Nonprofit, Integrity Housing, for Conversion to Primarily Affordable Rental Housing)
Staffreport
SUMMARY AND RECOMMENDATIONS
IH Metro San Leandro LLC with Affordable Housing Alliance II, Inc., dba Integrity Housing as the sole member (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 $70,000,000, (the "Bonds"), to assist in financing or refinancing the acquisition, rehabilitation, improvement and equipping of a multifamily rental housing project (known as Metro 77 & 85 Apartments) located at 77-85 Estabrook Street, San Leandro, California (the "Project"). The Borrower is not requesting any City funding assistance for this Project.
Metro 77 & 85 Apartments currently contain 146 total rental housing units that are all market rate. The revenue bond financing will enable the Borrower to acquire the Project and convert 75%, or 110 units, to long term affordable rental housing for low and very low income households. The remaining 25% of the units will remain market rate.
Staff recommends 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 Tax Exempt Bonds by the CMFA for the benefit of the Borrower, to provide for the financing of the Proj...
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